Budgets approved at Swansea and Cardiff councils
We now officially know how much council tax will be going up by in Swansea and in Cardiff
Local authorities across South Wales have been setting their budgets - and we now know how much council tax will be going up by in Swansea and in Cardiff.
Swansea
In Swansea, key council services will get tens of millions of pounds more this coming financial year and council tax will go up by 3.9% after the 2026-27 budget was passed at a meeting.
The net budget for the six main directorates will be £615.7 million compared to £584.3 million this year, with schools and social services getting just over £12 million more each. The extra £12 million-plus factors in savings that they – along with other directorates – will need to make to help mitigate spending pressures.
Council leader Rob Stewart told a meeting of full council that the 3.9% council tax rise was the third lowest in Wales for 2026-27.
Opposition councillors put forward a written amendment to defer £150,000-worth of what they were concerned would be city centre parking increases in order to encourage more footfall and help businesses.
They also submitted an amendment to stop caseloads increasing for council domiciliary carers as part of a proposed £250,000 savings measure in social services, where spending pressures are particularly acute and additional focus is being put on prevention.
Cllr Stewart said no parking increases had actually been proposed yet – cabinet, he said, will carry out an annual parking review in due course.
Both opposition amendments were eventually defeated and the revenue budget was approved with 38 councillors voting for it, four voting against and 22 abstaining.
During the meeting the council’s finance director Ben Smith said the authority’s current financial position in terms of directorate spending was looking good, providing lots of “wriggle room” and stability.
Savings and income-generating measures worth £12.7 million will still need to be made. It could have been more but for a £16.2 million reduction by the council in its employer pension contributions.
Some planned savings measures have been scrapped following a public consultation and further investments worth £1.1 million in things like road litter clearing, fly-tipping enforcement and new street signs will be made.
The Labour administration will also deploy a £10 million economic growth fund to boost expenditure on roads, music and live events, and other projects.
Cllr Stewart said work was progressing on a new Covid memorial consisting of glass spheres which would be located on the seafront and commemorate those who gave dedicated service during the pandemic and those who died.
He added that promenade lighting would be extended from the Slip bridge area down to the marina, completing a string of low-level lighting all the way to Mumbles.
The Swansea Labour leader also said Swansea Building Society Arena was not far off its millionth visitor and that footfall at the new Y Storfa library building on Oxford Street was significantly higher than when it was based at the Civic Centre on the seafront.
Add capital borrowing costs and Swansea’s share of the Mid and Wales Fire Authority levy, plus a few other adjustments, and the net budget comes to £677.6 million. This sum will be funded by a £415.6 million Welsh Government revenue support grant, £174.8 million council tax, and an £87.2 million share of business rates.
The 3.9% council tax rise will generate additional revenue of £9.4 million and mean Band D householders paying £1,807.38p, excluding the South Wales Police precept and any town or community council precepts.
Cardiff
A number of major changes that will affect the lives of residents in Cardiff have been given the go ahead.
At a meeting on Thursday, March 5, Cardiff Council approved a 3.9% increase in council tax for the 2026/27 financial year.
This increase equates to an extra £1.15 per week for a Band D household.
The budget delivers no cuts to frontline services and increased spending on schools (£14.1m to the delegated schools budgets and a further £4.1m for the retained education budgets) and services for vulnerable children and adults (a further £8.9m for children’s services and £8.6m for adult services).
Despite this, the city still faces a £22.7m hole in its finances which council bosses aim to fill with £7.9m raised through the council tax increase and £14.78m in efficiency savings, change programme savings and additional income.
However, due to saving requirements, the budget assumes a loss of 64.2 full-time equivalent posts.
During the budget debate, cabinet member for finance Cllr Chris Weaver called the Liberal Democrat amendment “less irresponsible” than the Conservatives amendment, which he called “on brand” for the Conservatives
He lauded the investments the council was making in many of the city’s services
The council leader, Cllr Huw Thomas, said: “This is a budget rooted in Labour Values.”
Presenting the Liberal Democrat amendment, Cllr Joe Carter said “On highways we will increase both revenue and capital spending.
“Our roads are an embarrassment, everywhere you turn you see crumbling roads and potholes”
He called the amendment “realistic and achievable” and the Labour budget a “pre-election gimmick” referencing some Labour councillors’ Senedd campaigns.
Liberal Democrat group leader Cllr Rodney Berman attacked the level of debt brought on by the amount the council is borrowing.
Conservative councillor Jayne Cowan said: “ Council tax increases are proposed as a first resort rather than the last. The result is further pressure on households already on stretched budgets”
Conservative group leader John Lancaster said: “We cannot tax people out of poverty”.
Plaid Cymru/ Green councillor Matt Youde said: “There is a feeling in the city that council tax keeps going up, this will put increasing squeeze on the cost of living and more people will fall behind in paying council tax”.
He asked for a more “compassionate” approach to those who fall behind.
Labour councillor Ed Stubbs said: “This budget debate is framed by the cost of living crisis.”
The council tax rise in Cardiff is lower than in other authorities such as Carmarthenshire (4.9%), Merthyr Tydfil (4.95%) and Vale of Glamorgan (5.5%).
This makes it among the lowest council tax increases in Wales.