Labour's local government settlement could 'push councils to the brink'

Responding to the provisional settlement 2026-27 for local government announced today (Monday 24^th November 2025), Plaid Cymru spokesperson for Finance, Heledd Fychan MS said:

“The provisional local government settlement for 2026-27 announced today will be hugely concerning for all local authorities in Wales, especially our rural communities in Carmarthenshire, Ceredigion, Gwynedd and Ynys Môn who will receive the lowest level of funding.

“Plaid Cymru, the Auditor General and the WLGA have warned in the starkest possible terms that such settlement would push local authorities to the brink, with the potential of council tax hikes of over 20% and thousands of job losses now a very real prospect.

“It’s clear that a review of the funding formula is urgently needed, so that every local authority receives the funding they need to maintain and strengthen public services for the benefit of our communities.

"For so long, we were promised that Wales would be better off under two Labour governments working together. With our councils facing yet another disastrous settlement, we're yet to see any proof of that. Only Plaid Cymru will stand up for Wales, demand a better deal from Westminster, and do everything we can to protect public services."