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PLAID Cymru council leaders are warning the Welsh government today that local authorities are on the brink of financial ruin.
In a letter to Chancellor Rachel Reeves and First Minister Eluned Morgan, they say that Welsh councils face falling off a cliff edge unless the Labour governments in Cardiff and London take urgent action to address significant funding pressures.
“It is no exaggeration to say that many councils find themselves on the brink of financial ruin and there is a duty on both Welsh and UK governments to act,” wrote the leaders of Carmarthenshire, Gwynedd, Ceredigion and Ynys Mon (Anglesey) councils, along with the deputy leader of Neath Port Talbot Council.
Coming ahead of next week’s British government Budget, the letter warns that a failure to act now will mean “many services that protect the most vulnerable in society face disappearing altogether.”
The council leaders say they appreciate the challenges both governments are facing following 14 years of austerity, but their letter warns that they have a duty to act.
A Welsh government spokesperson said: “We recognise the very real challenges local authorities are facing in balancing their services and budgets.
“We continue to meet with local authorities to discuss these challenges regularly.”
The Welsh Local Government Association estimates that local authorities in Wales face additional financial pressures of £559 million for 2025-26, requiring a spending increase of just over 7 per cent in net revenue.
