William Eichler 22 September 2025

Welsh councils warn of job losses without budget boost

Welsh councils warn of job losses without budget boost image
The Senedd, Cardiff. © Steve Travelguide / Shutterstock.com.

Welsh council leaders have warned of job losses, service cuts and council tax hikes unless next year’s budget brings extra funding.

Cllr Anthony Hunt, of the Welsh Local Government Association, said councils face a 7% shortfall. ‘We do not want to have to close that gap with service closures, with job losses and with council tax rises,’ he told the BBC, calling the situation a ‘disaster’ for communities.

The warning comes after Finance Secretary Mark Drakeford signalled that, with the 2026 Senedd election approaching, funding would rise only in line with inflation. Council leaders argue that this fails to match the escalating costs of delivering services.

A Welsh Government spokesperson said ministers ‘understand and recognise’ the pressures and are in regular talks with local authorities about how to ease them. But without a boost, councils fear frontline services across Wales will be left struggling.

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