Cardiff Council has warned that it might have to reduce – or stop completely – some services to help close a projected budget shortfall of £38.4m for 2026/27.
A report to the council’s cabinet has highlighted pressures from growing demand for complex services, such as children in care, adult social care, homelessness support, and pupils with additional learning needs.
In March, the council's medium-term financial plan highlighted a potential budget gap in 2026/27 of £40.4m. For the longer period of 2026-2030, this gap was estimated at £122.2m.
But councillors will hear this week that next year's projected deficit has now been revised down to £38.4m, while the medium-term gap has increased to £126.9m.
Cabinet Member for Finance, Cllr Chris Weaver, said the council is committed to delivering a balanced budget and will explore efficiency savings, spending reductions, and maximising income streams.