Labour must bring councils back from “cliff edge” – Plaid Cymru Council Leaders

Plaid Cymru Council leaders have warned that Welsh councils face falling off a cliff edge unless both Labour governments take urgent action to address significant funding pressures.

In a letter to the UK Chancellor and First Minister, the leaders of Carmarthenshire, Gwynedd, Ceredigion and Ynys Môn Councils along with the Deputy leader of Neath Port Talbot Council say “it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.”

Writing ahead of next week’s UK government budget, Darren Price, Nia Jeffreys, Bryan Davies Gary Pritchard and Alun Llewelyn warn that a failure to act now will mean ”many services that protect the most vulnerable in society disappearing altogether.”

Writing to Rachel Reeves and Eluned Morgan ahead of next week’s budget they say:

“Whilst appreciating that the challenges you face are significant following 14 years of austerity, it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act. 

The UK Budget presents an opportunity to provide urgent additional funding to Wales for critical Services such as social care, children’s services, schools and highways.

Without adequate levels of funding, our schools will continue to lack the resources they need to give pupils the education they deserve. As the National Association of Head Teachers amplified in its report last month, spending per pupil has fallen by around 6% in real terms - an unsustainable situation if we are to truly give learners the best start in life.

The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559m for 2025-26. This would require a spending increase of just over 7% in net revenue.

To address a pressure of £559m, without additional funding, will require a mix of council tax increases and further cuts to services and efficiencies. The pressure is equivalent to a 26% increase in council tax, or the loss of just under 14,000 posts.

We know that we speak for all Local Authority leaders in Wales when we say that the weight of responsibility when it comes to protecting the most vulnerable in our communities is felt more acutely than ever. 

We trust that your respective governments will work together as you have repeatedly pledged to do to ensure that Wales receives a fair deal from the UK Budget and that our councils get the urgent financial support they so desperately need. 

Failure to do this will see many councils falling off the cliff edge with many services that protect the most vulnerable in society disappearing altogether and leaving a lasting legacy of inequality and deprivation.”

A copy of the letter is below:

Dear Chancellor and First Minister,

We write in advance of the UK Budget on 30 October to express our grave concerns at the state of Local Authority finances in Wales.

Whilst appreciating that the challenges you face are significant following 14 years of austerity, it is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act.

The General Secretary of UNISON, Chrstina McAnea, has already warned that numerous critical services and a considerable number of jobs are under threat, posing the risk of doing irreversible damage to our communities.  

The UK Budget presents an opportunity to provide urgent additional funding to Wales for critical Services such as social care, children’s services, schools and highways.

Without adequate levels of funding, our schools will continue to lack the resources they need to give pupils the education they deserve. As the National Association of Head Teachers amplified in its report last month, spending per pupil has fallen by around 6% in real terms - an unsustainable situation if we are to truly give learners the best start in life.

The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559m for 2025-26. This would require a spending increase of just over 7% in net revenue.

To address a pressure of £559m, without additional funding, will require a mix of council tax increases and further cuts to services and efficiencies. The pressure is equivalent to a 26% increase in council tax, or the loss of just under 14,000 posts.

We know that we speak for all Local Authority leaders in Wales when we say that the weight of responsibility when it comes to protecting the most vulnerable in our communities is felt more acutely than ever.

We trust that your respective governments will work together as you have repeatedly pledged to do to ensure that Wales receives a fair deal from the UK Budget and that our councils get the urgent financial support they so desperately need.

Failure to do this will see many councils falling off the cliff edge with many services that protect the most vulnerable in society disappearing altogether and leaving a lasting legacy of inequality and deprivation.

Yn gywir,

Darren Price, Leader of Carmarthenshire County Council

Bryan Davies, Leader of Ceredigion County Council

Gary Pritchard, Leader of Ynys Mon County Council

Nia Jeffreys, Deputy Leader of Cyngor Gwynedd

Alun Llewelyn, Deputy Leader of Neath Port Talbot