Local Government
Carmarthenshire council consults public on plans to tackle £25m budget gap
Authority faces difficult decisions ahead of 2026/27 budget
CARMARTHENSHIRE COUNTY COUNCIL has launched a public consultation on its plans to address significant budget pressures, as it works to close a £25 million shortfall in its draft budget for 2026/27.
Like councils across Wales, Carmarthenshire is facing mounting financial challenges driven by inflation, rising demand for services and funding constraints. More than three quarters of the Council’s net revenue budget for day-to-day services such as social care and education comes from grants provided by the Welsh Government, which itself receives a block grant from the UK Government.
Only 17% of the Council’s income is generated through Council Tax.
In November 2025, the Welsh Government announced a provisional funding settlement for Carmarthenshire of 2.3%. To help bridge the gap, the Council has identified more than £9.5 million in operational savings and has also applied a recurrent £5 million saving through a reduction in employer contributions to the Dyfed Pension Fund.
Despite these measures, and a proposed Council Tax increase of 6.5%, the Council still faces a remaining shortfall of £3.5 million in its draft budget.
Since those figures were prepared, the Welsh Labour Government reached a budget agreement with Plaid Cymru on 9 December 2025. This could result in an overall funding increase of 4.1% for Carmarthenshire in 2026/27. The deal will be voted on by the Senedd on 20 January 2026.
However, until the final funding settlement is confirmed, the Council is consulting residents based on the original 2.3% provisional increase.
Savings proposals
The Council has a legal duty to set a balanced budget, ensuring that income from sources such as the Revenue Support Grant, Council Tax, paid-for services and grants meets its expenditure.
Last year, spending reductions of more than £8 million were delivered, including savings in educational transport, public conveniences and some cultural and leisure services. Building on this, the Council is proposing a further £9.5 million in operational savings for 2026/27.
Proposals focus on Integrated Services, Adult Services, Children’s Services and Environmental Infrastructure. Measures include expanding in-house care services, supporting greater independence where possible, extending the Families Together programme to reduce the need for children to enter care, increasing local fostering provision, and identifying efficiencies across highways and transport.
A significant element of the budget strategy is the reduction in employer pension contributions. Strong investment performance has allowed the Dyfed Pension Fund to reduce the Council’s contribution rate from 16.2% to 12.5% between April 2026 and March 2029. This delivers a recurrent £5 million saving with no service reductions, job losses or impact on pension benefits.
Cabinet member’s comments
Cabinet Member for Resources, Alun Lenny said the financial outlook remained extremely challenging.
He said: “Carmarthenshire County Council, like all local authorities across Wales, is facing very difficult budget decisions due to factors largely outside our control, including inflation, nationally agreed pay settlements and the level of funding provided by the Welsh Government.
“Demand for services continues to grow. Social care is under particular pressure due to an ageing population, rising commissioned care costs, Foundation Living Wage increases and capped client contributions.
“Children’s Services are also experiencing significant pressures, with more children requiring specialist residential placements, higher fostering payments and increasing complexity of need.
“Education faces challenges from school overspends, inflation and pay awards, as well as rising levels of additional learning needs, elective home education, attendance issues and behavioural pressures.
“Even after identifying £9.5 million of operational savings, we are still facing a significant budget gap. That is why it is vital that residents, businesses and stakeholders have their say on how we address these challenges.”
Have your say
The Council is inviting residents, businesses and voluntary and community organisations to comment on the proposed savings. Feedback will be considered by councillors as part of the final budget-setting process, ahead of approval by Full Council in March 2026.
Views can be shared online via the Council’s website or in person at customer service Hwb centres in Llanelli, Carmarthen and Ammanford.
The consultation closes on 1 February 2026.
Local Government
Independent group threatens to oppose council tax plans over education cuts
Councillors demand £2m savings removed amid safeguarding concerns in schools
THE INDEPENDENT GROUP on Pembrokeshire County Council has warned it will not support the Cabinet’s proposed council tax increases unless planned reductions to the education budget are reversed.
Cabinet has recommended a council tax rise of 4.6% for 2026/27, followed by 5% the following year and potential increases of up to 7.5% in future years. The Independent Group has criticised the proposals, describing them as a “ballot box” budget which they claim postpones difficult financial decisions for future administrations.
The group also said it had not been consulted during the budget process by Council Leader Jon Harvey, despite representing a significant number of councillors.
Safeguarding concerns raised

Councillor Huw Murphy said the group’s main concern relates to education funding, particularly following the recent placement of three Pembrokeshire schools into special measures.
He said: “The seriousness of the situation facing education in Pembrokeshire cannot be overstated. All councillors need to place school safeguarding above party politics.”
The Independent Group argues that reducing the education budget by more than £2 million would be inappropriate at a time when schools face financial pressures and scrutiny from inspectors.
The councillors have called for the proposed savings to be reinvested to help improve standards at Ysgol Harri Tudur, Milford Haven School and the Pembrokeshire Learning Centre in Neyland, as well as addressing wider infrastructure concerns including building maintenance issues at several schools across the county.
Budget pressures acknowledged
The group acknowledged efforts by the council’s finance leadership to achieve savings, noting projections that the authority could finish the financial year under budget.
However, Councillor Murphy questioned whether some efficiencies may have affected services, including education provision and safeguarding.
He also highlighted that councillors had previously reduced proposed education cuts during last year’s budget process following cross-party support.
Political tensions
The statement also criticised the position of councillors from other parties, questioning whether Labour and Plaid members would support reductions in education spending given the current challenges facing schools.
It further referenced previous proposals from Liberal Democrats councillors for higher council tax increases to protect school funding, suggesting the current position appeared inconsistent.
The Independent Group says it will only support the budget if education cuts are removed, placing what it describes as safeguarding, wellbeing and educational attainment as its priority
Council response
Cllr Alastair Cameron, Cabinet Member for Finance responded by saying: “All 60 Councillors will have the opportunity to have their say (and vote) on the budget this coming Friday (20th February).
“Cllr Murphy was invited to meet to discuss the budget in the Autumn. He was invited again on the 20th January. There has also been ample opportunity for all Members to engage in the budget setting process through a series of Members seminars.
“The budget proposed provides an additional £4.7m in funding for schools across Pembrokeshire next year and this is on top of an additional £5.9m provided last year and an additional £7.7m provided the year before.
“This year’s budget strikes the right balance between supporting key services and keeping council tax rises manageable.
“As the Leader said last week the administration is very aware we cannot keep asking residents to pay significantly more and it is our intention to get back to Council Tax increases that are broadly in line with inflation.”
Local Government
Search begins for five bodies possibly buried beneath County Hall car park
A SEARCH is underway to determine whether the remains of five executed prisoners from the nineteenth century may still lie beneath a council-owned car park in Carmarthen.
A deep-ground scan was carried out at the Carmarthenshire County Hall site on Sunday (Feb 15), where the former Carmarthen prison once stood. The investigation is focusing on the possible burial locations of four convicted murderers and one convicted forger who were executed between 1818 and 1894, when prison gardens occupied the land now used for parking.
The survey was conducted using a digital ground-penetrating radar system operated by Shane Gwilt of Leica Geosystems. The findings have been sent overseas for specialist analysis, with results expected within the next week.
County Hall stands on the historic site of Carmarthen Gaol, which closed in 1922. Although the prison buildings were demolished in the 1930s, local historian and former Mayor of Carmarthen, Richard Goodridge, believes the bodies were never exhumed and may remain in their original graves.
Carmarthenshire County Council has confirmed it has no intention of disturbing or removing any remains should they be identified.

Richard Goodridge said: “I strongly believe, based on the evidence and research I have carried out over the last two years, that the remains of these five convicted felons, hanged for their crimes, still remain where they were buried after their execution.
“It is the last piece of the jigsaw puzzle that, if confirmed, will lay to rest a great mystery that has fascinated Carmarthen residents for over a hundred years. It is unbelievable that the bodies were not exhumed when the prison was demolished.
“Finding them will at least bring to an end a mystery worthy of a Sherlock Holmes novel.”
Carmarthenshire County Council’s Cabinet Member for Resources, Cllr Alun Lenny, said the investigation had been carried out without disruption or cost to the authority.
He said: “The work carried out on Sunday in an attempt to discover the remains of the five executed criminals didn’t disturb the car park surface in any way and was at no cost to the county council. But it may add another chapter to the colourful history of Carmarthen as Wales’ oldest town, so we await the results with anticipation.”
Business
Milford Haven-South Hook LNG gas pipeline gets green light
THE FINAL stage of a call for a 1.5km hydrogen gas pipeline in Pembrokeshire in connection with a previously granted scheme for green energy production has been given the go-ahead by the national park.
Late last year Pembrokeshire County Council approved a scheme by Zurich-based MorGen Energy Ltd, previously known as H2 Energy Europe, sought permission for a 1.5km six-inch 10-bar low-pressure hydrogen pipeline and associated Above Ground Installation at the Impala Terminal, Milford Haven to the South Hook Liquid Natural Gas (LNG) Terminal.
A supporting statement through agent Fisher German said the scheme crossed both Pembrokeshire County Council and the national park authorities, with a similar application before that authority.
It added: “The proposals form part of the West Wales Hydrogen project, where planning permission was granted on October 6, 2023, for the development of a new 20MW hydrogen production facility at the Impala Terminal (formerly Puma Energy) in Milford Haven.
“The approved hydrogen production facility which uses electrolysis to split water into hydrogen and oxygen, where the oxygen is a by-product of the process. The hydrogen production plant will produce 1,875 tons of hydrogen per year. Hydrogen will be distributed via high pressure vessels (40 ft. containers) to various customers in the closer vicinity, opening the hydrogen market to a large variety of customers.
“Hydrogen will also be distributed to the South Hook LNG Terminal and it is proposed that this will be via a new six-inch 10-bar hydrogen pipeline. The option to supply hydrogen to the South Hook LNG terminal via high pressure hydrogen containers was dismissed due to safety considerations at the terminal.
“This application therefore seeks planning permission for a section of below ground hydrogen pipeline within the jurisdiction of Pembrokeshire County Council, which comprises the north part of the route from the hydrogen plant at Impala to the South Hook LNG Terminal, alongside an AGI at the Impala Terminal.”
An officer report accompanying that approval said the southern part of the proposed pipeline was within the jurisdiction of the Pembroke Coast National Park Authority.
A national park officer report for that part, recommending approval, said its section of the pipeline “is a linear parcel of land comprising approximately 0.994 hectares,” adding: “It is mainly the location of a disused railway, now overgrown with scrub and grassland, in the open countryside.”
It added: “The development site is cross-boundary, situated primarily within the jurisdiction of the Pembrokeshire Coast National Park Authority (the south-west extent), with a small section of the proposed pipeline (and an above-ground installation (AGI)) within the Pembrokeshire County Council (PCC) LPA area (the north-east extent).”
The national park side was conditionally approved by planners.
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