Council receives multi-million-pound funding boost after Plaid Cymru budget deal

Alec Doyle, Local Democracy Reporter

A north Wales council is set to receive millions more from Welsh Government next year after the draft budget settlement was revised following a deal with Plaid Cymru last week.

Plaid, which initially planned to oppose the 2026/27 draft Local Government Settlement, agreed a deal with Labour to abstain from the vote, allowing the settlement to pass through the Senedd after securing an improved deal for local authorities.

The deal will see an additional £112 million committed to the Local Government Settlement. The 13 local authorities that received the lowest increase in the first draft – 2.3% – will now receive no less than 4%, with some receiving even more.

The average uplift in next year’s Local Government Settlement is now 4.5%.

Details of exactly which councils will receive what will be released in the new year. For Flintshire however it means instead of receiving an additional £6.5 million it will definitely receive at least £11.3 million – a 4% increase on 2025/26.

The news was welcomed by the authority, which said that it’s sustained calls for greater fairness had been heard.

“We welcome the updated draft settlement, which represents a significant step forward for councils like Flintshire that have been underfunded for many years,” said Flintshire County Council Leader Cllr Dave Hughes.

“Over recent months I and my Cabinet colleagues have been clear with ministers about the need for a fairer approach that recognises the significant pressures we face in delivering vital services.

“The revised settlement shows that consistent lobbying has helped shape this outcome. While it does not solve all of our challenges and we still face a funding shortfall, it is a move in the right direction.

“Our work does not stop here though, and we will continue to press for a funding system that provides fairness for Flintshire.”

Extra investment

Reflecting on the improved draft settlement, Plaid Cymru Leader Rhun ap Iorwerth said: “Plaid Cymru always acts in the best interests of Wales and that is exactly what we are doing on the budget.

“We asked for two things – to protect public services and prevent unaffordable council tax rises and to correct the inadequate NHS settlement caused by Labour’s rollover budget. We have secured both.

“By abstaining in return for the necessary increases in health and council budgets, Plaid Cymru ensures that Labour’s catastrophic proposed cuts are avoided.”

The package also includes extra investment in health and social care, and additional capital funding to be allocated by the next government after the Senedd elections next year.

Wrexham Councillor Mark Pritchard, Leader of the Welsh Local Government Association (WLGA) Independent Group said: “The improved draft settlement is welcome and shows that Welsh Government has taken on board many of the concerns and issues raised by local authorities.

“The additional investment announced for health and social care is positive, but the scale of demand in these services continues to outpace the resources available. Therefore, while this is a step in the right direction, we must be clear that this does not solve the severe financial challenges councils face.

“Ultimately, this remains short of what is needed to place local government on a sustainable footing. We will continue to make the case about the scale of the pressures facing councils during this consultation period.”