With the draft Welsh budget and provisional local government settlement now published, we have a clearer picture of the landscape in which councils will be operating over the next year.
Yet even with that clarity, the pressures on councils continue to intensify. The question now is how we protect services for the future.
The draft Welsh budget and provisional settlement give us a clearer starting point. A 2.7 per cent increase in core funding, with a funding floor of 2.3 per cent, provides welcome stability after a turbulent period.
The uplift in core revenue, along with major grant and capital announcements, shows that the Welsh Government recognises the strain councils are under.
However, our pressures run much deeper, and the Welsh Government has committed to working with us as we look to strengthen the support for local government by the final budget settlement, which is expected in January.
The draft budget also restates support for key national priorities.
It continues commitments such as the real living wage for care workers, the programme to strengthen children’s services, and investment in education and housing.
Councils will be central to delivering all of this. These commitments matter, but they must be backed with the resources needed to turn them into reality on the ground.
But stability doesn’t erase the challenge; councils are facing rising demand in social care, homelessness, education and workforce pressures. These costs are increasing faster than the resources available to meet them.
The reality is simple: the pressures are now structural, not temporary.
This is why the months ahead are so important. Councils need the conditions that allow them to plan effectively. Long-term certainty, clarity on future responsibilities, and a settlement that reflects the true scale of the pressures on the ground are essential.
There is still room for the Welsh Government to go further. With significant unallocated funding in the draft budget, there is a real opportunity to strengthen the final settlement and help councils safeguard the services people rely on every day.
Councils also need clarity on how wider cost increases, such as national pay awards, special educational needs pressures and new statutory responsibilities, will be supported. Without this, planning becomes increasingly difficult.
But this moment demands more than just extra funding. It demands a conversation about sustainability.
How do we protect core services in the long term? How do we support the workforce that delivers them? How do we give councils the flexibility they need to respond to local needs?
Local government has shown extraordinary resilience over the past decade. Councils have adapted, innovated and continued serving communities despite austerity, rising costs and surging demand.
But resilience has its limits. No organisation can absorb year-on-year pressures without the right tools and resources.
This is a critical moment. A stronger final settlement is essential if councils are to protect the services our communities depend on. The decisions made in the coming weeks will shape the ability of councils to continue delivering essential services across Wales.
- To find out more about the work of the Welsh LGA, please visit Welsh LGA website.