Councils warn of tax rises and service cuts

Councils say may have to cut services and staff, and raise taxes, if they don't receive enough money in next year's budget

Councils say they may have to cut services, raise taxes and lay off workers without adequate funding in next year's budget.

Mark Drakeford, the Welsh government's finance secretary, has indicated that because of the Senedd election in 2026, the budget would be "business as usual" and rise only in line with inflation.

Councillor Anthony Hunt, from the Welsh Local Government Association, told BBC Politics Wales this would be a "disaster" for local services.

The Welsh government said while it "recognised the pressures on public services", the approach would "give stability" to councils and "flexibility" to the next Welsh government.

Mr Hunt, who is the leader of Torfaen Council and represents Welsh Labour, said there was a 7% budget gap which councils did "not want to have to close... with service closures, with job losses and with council tax rises".

Mr Hunt said councils wanted to "work together" with Welsh government but he said the pressure on social care and schools was "immense".

"We know we have to meet some of that gap ourselves. We'll work hard to make savings, to make efficiencies, but we need to work together at all levels of government," he said.

"We can run the preventative services that help stem demand in things like the NHS. We can build our communities, we can make lives better for people."

A draft budget for 2026/27 will be published in October, with MSs voting on a final budget in January.

The Welsh Government said: "We are taking the approach of a one year, roll over budget for 2026-27 to provide stability to public services in the run-up to the Senedd election and to provide flexibility for the next Welsh Government to set its own priorities from day one.

"We understand and recognise the pressures on public services and on local authorities. Ministers and officials are in regular discussion with local authorities about the pressures they face and how these can be mitigated."