William Eichler 24 March 2026

Welsh councils receive £50m capital funding boost

Welsh councils receive £50m capital funding boost image
Welsh Government © Ceri Breeze / Shutterstock.com.

All 22 Welsh local authorities are to receive a share of £50m in additional capital funding this financial year, the Welsh Government has announced.

Distributed using the general capital formula, the funding can support a range of priorities including repairing roads and highways, maintaining community schools and investing in flood defence schemes.

Councils may also use the money to replenish reserves or reduce borrowing, easing pressure on future budgets.

Cardiff receives the largest individual allocation at £5.27m, while Merthyr Tydfil receives the smallest share at £869,500.

Cabinet Secretary for Housing and Local Government Jayne Bryant said the funding gives councils ‘the breathing space they need at a challenging point in the financial year,’ adding it would make a real difference to communities across Wales.

Welsh Local Government Association (WLGA) Finance Spokesperson Cllr Anthony Hunt welcomed the investment, saying it would help local authorities manage rising costs, maintain essential infrastructure and keep vital projects moving forward.

‘It will make a real, practical difference on the ground, supporting councils to respond to local priorities and keep vital projects moving forward,’ he added.

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