Welsh Government accused of favouring ‘Labour heartlands’ in Local Government Settlement

Richard Evans, local democracy reporter

The Welsh Government has been slammed for “yet again” committing more money that “benefits Labour’s heartlands” in its Provisional Local Government Settlement for the next financial year.

Conwy is set to receive a 3.7% increase in its annual sum from Welsh Government, according to figures released on Wednesday in the Provisional Local Government Settlement 2025-26.

By contrast south Wales councils such as Newport (5.6%), Cardiff (5.3%), Merthyr Tydfil (5.1%), and Blaenau Gwent (4.8%) are all looking like they will receive significantly more.

Four of the six north Wales councils have been told they will likely receive under the 4.3% national average rise, with Gwynedd (3.2%) once again set for one of the lowest settlements in Wales.

Flintshire are set to see a 3.3% increase, Anglesey 3.6%, Wrexham 4.4%, and Denbighshire 4.7%.

Formula

The announcement follows Conwy’s leader Cllr Charlie McCoubrey stating that the formula used to calculate the sums desperately needs to change, claiming it fails to properly acknowledge the county’s older population.

Last year Conwy received the joint lowest rise in Wales.

Speaking on the settlement, Aberconwy Conservative MS Janet Finch-Saunders said: “The settlement, yet again, benefits Labour’s heartlands.

“It is unjustifiable that the highest increases include the three southern cities: Cardiff, Swansea, and Newport.

“There is no doubt that the funding formula is flawed as rural authorities with older populations, where services cost more to run, are not receiving their fair share.

“The unfair settlement is also compounded by Labour’s employer National Insurance increase, which adds a further strain on funds.”

‘Bad for north Wales’

She added: “Labour at both ends of the M4, Cardiff and London, is proving to be extremely bad for north Wales.”

A Welsh Government spokesperson said: “In 2025-26, local authorities in Wales will receive £6.1 billion from the Welsh Government in core revenue funding and non-domestic rates to spend on delivering key services – an increase of 4.3% or £253 million on a like-for-like basis compared to the current year.

“The formula which distributes this funding between authorities takes into account a range of factors which drive Authorities’ relative need to spend on services as well as their ability to raise local income – the formula is agreed with local government.

“Each year, some authorities experience smaller increases than others, due to relative changes in for example population and pupil numbers.”