Cardiff has the largest overall borrowing, while Wrexham records the highest debt per resident among Wales’ 22 principal councils

WELSH local authority bodies are carrying debts of almost £6.7 billion, according to new figures which have prompted warnings about the long-term burden being placed on taxpayers.

Research published by the TaxPayers’ Alliance puts total local authority debt in Wales at £6.698 billion during 2025-26.

The campaign group said that amount was equivalent to nearly 2.94 million average Welsh Band D council tax bills, based on an average annual charge of £2,283.

The figures were compiled from UK Government borrowing and investment data for the final quarter of the financial year.

Wales’ 22 county and county borough councils accounted for around £6.55 billion of the total, with additional borrowing attributed to other local authority bodies.

Cardiff Council recorded the largest debt among Welsh councils at £1.148 billion, followed by Swansea at £629.2 million and Wrexham at £542.5 million.

Carmarthenshire Council had debts of £434.1 million, while Flintshire recorded £362.3 million and Powys £361.9 million.

However, the picture changes when debt is calculated according to population.

Wrexham had the highest council debt per resident in Wales at approximately £3,924, followed by Denbighshire at £3,431 and Merthyr Tydfil at £3,049.

Cardiff’s debt was equivalent to £2,989 per resident, while Powys recorded approximately £2,680 and Swansea £2,504.

What about Pembrokehire?

In Pembrokeshire, the figures show total council debt of £201.794 million, equivalent to approximately £1,605 for every resident.

Of Pembrokeshire’s total, £170.194 million was recorded as borrowing from the Public Works Loan Board, the government body which provides loans to councils and other public organisations.

Pembrokeshire ranked 12th among Wales’ 22 principal councils for total debt and 15th when borrowing was calculated per resident.

The figures do not, however, mean that each household personally owes the amount calculated per resident.

Council borrowing is commonly used to finance long-term capital projects such as schools, council housing, roads, leisure facilities and regeneration schemes.

Under the prudential borrowing framework, Welsh councils are permitted to borrow for capital purposes provided they judge that the repayments are affordable. Welsh Government figures state that authorities can borrow without specific government consent where they can afford to service the debt.

Audit Wales has also stressed that capital spending is essential for providing services, including the construction of schools, improvements to libraries, social care equipment and the maintenance of public buildings.

However, borrowing must eventually be repaid, and interest and repayment costs can place continuing pressure on the annual budgets used to fund frontline services.

Across the UK, local authority debt reached a record £154.6 billion during 2025-26, an increase of £6 billion, or 4.1 per cent, compared with the previous year.

The TaxPayers’ Alliance said council debt had risen by £84.6 billion since 2009-10, representing a cash increase of 121 per cent.

Around £116 billion, or three quarters of the UK total, was borrowed from the Public Works Loan Board.

John O’Connell, chief executive of the TaxPayers’ Alliance, described the level of local authority debt as a “ticking time bomb” and called for councils to bring their borrowing under control.

He said taxpayers ultimately risked being left responsible for obligations accumulated through borrowing, statutory service pressures and, in some parts of the UK, unsuccessful commercial investments.

The figures should nevertheless be treated as a measure of gross borrowing rather than a complete assessment of the financial health of an individual council.

They do not deduct councils’ cash balances or investments, assess the value of assets funded through borrowing, or show the interest rates, repayment dates and annual servicing costs attached to each loan.

A council with substantial borrowing may also hold valuable housing, property and infrastructure assets, while an authority with less debt can still face serious pressure because of falling reserves, rising demand or an ongoing budget deficit.

The findings are likely to increase pressure on Welsh councils to provide clearer information showing what their borrowing has funded, how much taxpayers are paying each year in interest and repayments, and whether those costs remain affordable as spending pressures continue to grow.

HAVERFORDWEST VC HIGH SCHOOL has closed early today after extreme heat affected wall-mounted soundproofing boards around the building.

The school said several of the boards, including some positioned at height, could become unsafe and fall from the walls.

Pupils were initially moved to safe areas and placed under supervision while the situation was assessed by the school’s site management team and Pembrokeshire County Council maintenance officers.

Following discussions, a decision was made to close the school early so the boards could be removed safely.

School buses were due to arrive at 1.15pm to transport pupils who normally travel home by bus. Children attending a trip at Scolton Manor were expected to return to the school by 1pm.

Parents and carers who usually collect their children were asked to do so from 1.30pm.

Pupils who normally walk home were only permitted to leave after receiving parental permission. Parents could provide permission by sending their child a text message to show their form tutor or by contacting the school reception.

The school said it expected the affected boards to be removed today, allowing the school to reopen as normal tomorrow, Tuesday, July 14.

Parents will be updated through ParentMail if the work cannot be completed as planned.

A CALL for Pembrokeshire to again push Welsh Government for a review of the contentious 182-day rule for self-catering holiday properties in order to avoid paying second homes tax is to be heard next week.

Self-catering businesses not meeting the 182-day criteria end up paying the second homes council tax premium, currently 125 per cent on top of the general rate, in the county, along with similar premiums for the other elements of the overall bill such as the police precept.

In a submitted question to be heard at the July 16 meeting of Pembrokeshire County Council, Cllr Huw Murphy asks: “Most councillors are aware that much of Pembrokeshire relies on tourism and hospitality for its economic success. A key element of a successful Pembrokeshire tourism industry is the self-catering sector.

“Plaid Cymru in its manifesto made several pledges for its first 100 days in office, one under the headline of ‘Unleashing Wales Economic Potential’ which made no specific mention of the 182 letting day rule that was introduced by the previous Labour Government under their co-operation agreement with Plaid Cymru.

“However, Plaid Cymru prior to Senedd elections in May 2026, stated that they would review the 182-day threshold which has been a disaster for many self-catering businesses, many of whom are in rural and coastal communities. I have raised this matter on several occasions since being elected.

“Through speaking to those operating in the self-catering sector there is a clear need to reduce the 182-day threshold. I should point out that in the past I have suggested it be reduced to 140 days and still hold that view.

“Over 50 days have now passed since the Senedd Elections, but we have not heard any details of a review of the 182-day letting rule. Therefore, will the Leader write off to the First Minister outlining the concerns of many Pembrokeshire county councillors with regards to the 182 days letting rule and ask for a reply setting out when Welsh Government intend to commence a review of this policy, which is much needed?”

Back in 2023, Cllr Murphy submitted an unsuccessful notice of motion to full council calling for the 182-day rule in Pembrokeshire to be lowered, proposing a figure of 140 days.

At the time of the 2023 call it was instead agreed to review the situation and for the council to raise its concerns to Welsh Government.