THE LEADER of a Welsh council has welcomed a 3.1% increase in its funding from Welsh Government but says difficult decisions still have to be made to deliver a balanced budget.
Responding to the Welsh Government’s provisional local government settlement Councillor Brent Carter, the Labour leader of Merthyr Tydfil council, said he welcomed Welsh Government’s commitment to supporting local government with a provisional settlement of £6.4bn for 2026-27, which equates to an average increase of 2.7%.
For Merthyr Tydfil this means £140m for 2026-27, or a 3.1% increase in funding.
He said the announcement also confirmed £1.3bn in revenue grants and more than £1.08bn in capital investment for local government.
“For Merthyr Tydfil, this means that our draft budget settlement, outlined by Welsh Government on November 3, 2025, has increased by 3.1% and this will support us in continuing to deliver quality public services for the residents of Merthyr Tydfil.
“However as a cabinet, and even after taking into consideration the settlement being better than what we were expecting, we are fully aware that difficult decisions still have to be made in order to deliver a balanced budget for the next financial year.
“Like all other councils we will now take time to consider and analyse the detail of this provisional settlement further.
“As we move forward with the budget-setting process it is crucial for us to involve and communicate with our communities.
“We value the input and feedback from residents and businesses and we understand the importance of transparency and inclusivity in decision-making and want to ensure that the community’s needs and priorities are taken into consideration.
“It’s now more important than ever to have your say.”
The annual budget consultation is currently under way and be accessed via the council’s website.
Cllr Carter said: “Your participation and input are vital as we work towards setting a budget that reflects the needs of our community.”
The final Welsh Government budget will be published on January 20, 2026, with a debate and vote scheduled for January 27, 2026.
