Councillor Brent Carter, Leader of the Council, responds to Welsh Government’s provisional budget settlement.

“As Leader of this Council, I welcome Welsh Government’s commitment to supporting local government with a provisional local government finance settlement of £6.4bn for 2026/27, which equates to an average increase of 2.7%. In addition to this, yesterday’s announcement also confirmed £1.3bn in revenue grants and more than £1.08bn in capital investment for local government.

“For Merthyr Tydfil, this means that our draft budget settlement, outlined by Welsh Government on 3^rd November 2025, has increased by 3.1%, and this will support us in continuing to deliver quality public services for the residents of Merthyr Tydfil. However, as a Cabinet, and even after taking into consideration the settlement being better than what we were expecting, we are fully aware that difficult decisions still have to be made in order to deliver a balanced budget for the next financial year.

“Like all other Councils, we will now take time to consider and analyse the detail of this provisional settlement further.

“As we move forward with the budget setting process, it is crucial for us to involve and communicate with our communities. We value the input and feedback from residents and businesses, and we understand the importance of transparency and inclusivity in decision-making and want to ensure that the community's needs and priorities are taken into consideration.

“It’s now more important than ever to have your say. Our Annual Budget Consultation is currently underway and can be accessed via the link below. Your participation and input are vital as we work towards setting a budget that reflects the needs of our community.”

Visit: smartsurvey.co.uk/s/MTCBCBudgetConsultation26-27Phase2

The final Welsh Government budget will be published on 20^th January 2026, with a debate and vote scheduled for 27^th January 2026.