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
Carmarthen County Council approves budget with 4.9% tax rise and £9.6m cuts
CARMARTHENSHIRE COUNTY COUNCIL has approved its revenue budget for 2026-27, confirming a 4.9% increase in council tax alongside £9.6 million in spending reductions.
The agreed rise is lower than the originally proposed 6.5%, following a period of public consultation with residents, schools, businesses and other stakeholders across the county. The reduction was also made possible by a £5 million saving from the Dyfed Pension Fund employer contribution and additional funding from the Welsh Government.
Council tax currently raises around 17% of the authority’s income, with approximately 70% of the net budget funded through Welsh Government grants.
Cabinet Member for Resources Cllr Alun Lenny said the final budget reflected feedback gathered during the consultation process.
“The Budget Strategy approved at Full Council responds to the valuable feedback raised as part of the public consultation process and ensures, as far as possible, that service levels and standards are maintained,” he said.
He added that additional Welsh Government funding — almost £6.5 million — had improved the council’s financial position by nearly £3 million and removed a projected £3.5 million shortfall.
More than 1,200 people, including residents, school staff, town and community councils, unions, scrutiny committees and young people, responded to the consultation.
As a result, the final budget includes amendments totalling £850,000 and removes some previously proposed cuts.
Changes include the restoration of £160,000 for highways, a 50% reduction in the planned increase to school meal costs, and the removal of a proposal to close Pendine Outdoor Education Centre in 2027-28 to allow further feasibility work.
Savings affecting the Families Together Team have also been withdrawn.
The council said the budget also includes additional investment in property maintenance, the modernising education team, increased support for the Welsh language in education, and further investment in highways.
Education
Closing Ysgol Meidrim branded ‘illogical’ by language campaigners
Concerns raised over consultation process as governors’ community hub proposal gains attention
CYMDEITHAS YR IAITH has criticised Carmarthenshire County Council’s proposal to close Ysgol Meidrim, describing the move as an “illogical conclusion” and questioning whether the statutory presumption against closing rural schools has been properly applied.
The campaign group issued a formal response to the consultation, arguing that local authorities are required to begin any review of a rural school by seriously considering how it can be sustained and developed, with closure considered only as a last resort.
Speaking on behalf of Cymdeithas yr Iaith locally, Ffred Ffransis said: “Nobody could understand why the council would come to the illogical conclusion of wishing to close a school which Estyn said was improving educationally, where pupil numbers were increasing, where the school served as the Welsh-medium heart of the community, which acted as a safe haven for pupils with additional learning needs, and where the council would save almost no money at all by closing it.
“However, when we followed the initial stages of the consultation process, it became clear that officials were treating all rural schools under review as problems from the start, and data was collected to back up the preconception. In presenting the legislation to the Senedd in 2018, the then Secretary for Education, Kirsty Williams, emphasised that proposing closure of a rural school should always be the ‘last resort’, but it is now being treated as the solution of choice.”
He added that the organisation welcomed signs the council was taking seriously an alternative proposal from the school’s governors to develop a costed community hub alongside the school, working in cooperation with neighbouring schools.
Council response
Carmarthenshire County Council has previously stated that it has a statutory duty to review school provision to ensure education is delivered in suitable facilities and remains sustainable for the future. The authority says proposals are developed following detailed assessments, including pupil numbers, building condition, financial considerations and long-term viability.
The council has also confirmed that consultation responses, including alternative proposals, will be considered before any final decision is made by elected members.
The consultation process remains ongoing.
Local Government
Council launches consultation on future of Welsh language in Pembrokeshire
Residents invited to help shape five-year strategy before March deadline
PEMBROKESHIRE residents are being invited to share their views on how the Welsh language should be promoted across the county over the next five years, as part of a new consultation launched by Pembrokeshire County Council.
The draft Welsh Language Strategy 2026–31 sets out the council’s proposed objectives, targets and action plan for increasing the use and visibility of Welsh locally. The authority is required to produce a five-year plan under the national Welsh Language Standards framework.
An Integrated Impact Assessment has also been published alongside the draft strategy, outlining the potential effects on the Welsh language and other policy areas. Council officials say the information will help residents respond to the consultation questions.
Cabinet Member for Education and the Welsh Language, Cllr Guy Woodham said: “This Welsh Language Strategy focuses on developing the use and visibility of the Welsh language across the county and is supported by our Welsh in Education Strategy.
“Please take the chance to have your say on how we support the Welsh language over the next five years.”
Residents can submit their views through the council’s Have Your Say webpage. Paper copies are also available by contacting the council’s customer contact centre.
The feedback gathered during the consultation will be used to help councillors decide the final version of the Welsh Language Strategy 2026–31. Cabinet is expected to consider the responses at a meeting in July 2026, with a final decision due to be made by full council later the same month.
The consultation closes at 5:00pm on Sunday, March 22.
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