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The Cabinet Secretary for Housing and Local Government, Jayne Bryant, has announced that local authorities will next year receive £6.4 billion from the Welsh Government to spend on delivering key services.  

First published:
24 November 2025
Last updated:

The investment, which comes from the Revenue Support Grant and non-domestic rates, means that Welsh councils will receive an average 2.7% funding increase, helping to protect vital services including social care, education and waste collection.

In addition, a fully funded floor will ensure that no council receives less than a 2.3% increase. 

In addition to the core settlement, there will also be grants for local government amounting to over £1.3 billion for revenue purposes and over £1.08 billion for capital investment. 

Every year our national Council Tax Reduction Scheme means that vulnerable and low-income households will continue to be supported to pay their council tax bills.   . 

Cabinet Secretary for Housing and Local Government, Jayne Bryant, said:

We have been listening to local government, and we fully recognise the challenges that they face.  

This provisional settlement is  the beginning of the budget process , Our priority has been to provide councils with the stability they need to set budgets which protect and deliver core frontline services.

We will continue to work closely with the Welsh Local Government Association and council leaders to see where we can provide additional flexibility when managing their budgets.  

We are committed to working with all parties to develop a budget which ensures our public services can continue to operate effectively and which can be passed by the Senedd in the final months of this term.

The final budget will be published in January following consultation with local authorities and stakeholders.