‘Devastating consequences for services’ after Labour Government budget failure

Welsh Government has over-promised and under-delivered

North Wales councils face “devastating consequences for services” as the Labour Government’s provision budget fails to address the funding crisis. 

 That’s the warning from Llyr Gruffydd, Plaid Cymru MS for north Wales, after rural and northern councils lost out in the settlement with Flintshire and Gwynedd getting among the lowest Welsh Government settlements of all councils in Wales. 

Gwynedd gets a 3.2% rise while Flintshire receives 3.3%, placing them 20th and 19th respectively among all Welsh councils. Wrecsam Council has a settlement of 4.4%

Mr Gruffydd said: “We were promised that having two Labour governments in London and Cardiff would be transformational for public services. This is not proving to be the case for councils across the north Wales region. Councils such as Flintshire have reported a £40 million funding gap and failing to bridge that funding gap will have devastating consequences for services. After 14 years of Tory austerity, this provisional budget does not provide the transformational funding needed to revive struggling social care, education, environmental and other key services run by local authorities. 

 “It feels as if the Welsh Government has over-promised and under-delivered with a budget that barely keeps up with inflation and government pay rises for teachers and other public sector workers. It’s incredibly disappointing after all Labour’s hype.” 

Responding to the Welsh Government’s Provisional Local Government Settlement 2025-26, Plaid Cymru’s Local Government spokesperson, Peredur Owen Griffiths said:

“To fill the £559 million funding shortfall caused by Labour mismanagement, local authorities needed at least a 7% increase in revenue just to maintain the vital public services they provide, let alone start on the improvement required in these vital services.

“Today’s announcement simply does not go far enough to ease the budgetary constraints faced by Welsh councils, and will force them into tough decisions on the future of public services that have already been cut, some even disappearing entirely.

“At the same time - the Labour UK Government’s rise to National Insurance contributions plunge councils into uncertainty, as they may have to shoulder the burden of these increased costs. Every day of silence from Labour on this make it harder for our councils to plan.

“Labour – both in the UK and Welsh Government are forcing councils into positions where council tax may have to rise, and public services may have to be cut. Labour are pushing local authorities into an existential crisis – and it is the public that will bare the brunt of it.”