Flintshire faces third-lowest funding settlement as councils brace for financial challenges

Flintshire has been handed the third-lowest funding increase in Wales as part of the Welsh Government’s provisional local government settlement for 2025-26.

The county’s Aggregate External Finance (AEF) allocation will rise by just 3.3% compared to the Wales-wide average increase of 4.3%.

This leaves Flintshire, along with Monmouthshire (2.8%) and Powys (3.2%), at the bottom of the funding table, sparking concerns about the ability to balance budgets and maintain services.

The Welsh Government announced the provisional settlement, which provides £6.1 billion in Revenue Support Grant (RSG) and non-domestic rates (NDR) to councils.

This represents an increase of £253 million compared to 2024-25.

Balancing budgets amid economic pressures

Jayne Bryant MS, Cabinet Secretary for Housing and Local Government, said the funding increase was part of efforts to support frontline services and protect vulnerable households.

“The additional funding provided through the Autumn Budget is welcome as we emerge from the prolonged period of austerity imposed by previous UK Governments, as well as a range of economic crises such as spiralling inflation,” she said.

However, Flintshire County Council is facing a projected budget shortfall of £38.4 million for the 2025-26 fiscal year, adding to the financial strain.

Over the past decade, the council has cut more than £125 million from its budget and launched a consultation in October seeking public input on further cost-saving measures.

Calls for reform

The funding formula used to allocate local government budgets has drawn criticism for failing to adequately reflect local needs.

Welsh Conservative Shadow Minister for Finance and Local Government, Peter Fox MS, said: “Labour’s funding formula has prioritised their cash reserve-rich heartlands with this settlement, ignoring the needs of councils like Monmouthshire, Powys, and Flintshire that have been left at the bottom of the pile.”

Mr Fox also raised concerns about whether rising costs, such as those driven by increased National Insurance contributions, will further strain council budgets.

Llyr Gruffydd, Plaid Cymru MS for north Wales said councils face “devastating consequences for services” as the Labour Government’s provision budget fails to address the funding crisis.

Mr Gruffydd said: “We were promised that having two Labour governments in London and Cardiff would be transformational for public services.”

“This is not proving to be the case for councils across the north Wales region. Councils such as Flintshire have reported a £40 million funding gap and failing to bridge that funding gap will have devastating consequences for services.”

“After 14 years of Tory austerity, this provisional budget does not provide the transformational funding needed to revive struggling social care, education, environmental  and other key services run by local authorities.”

Mr Gruffydd: “It feels as if the Welsh Government has over-promised and under-delivered with a budget that barely keeps up with inflation and government pay rises for teachers and other public sector workers. It’s incredibly disappointing after all Labour’s hype.”

Investing in local priorities

In addition to the core settlement, the Welsh Government has announced specific grants for targeted priorities, including £200 million in general capital funding and £30 million for the Low Carbon Heat Grant to support decarbonisation efforts.

Ms Bryant encouraged councils to carefully consider how they balance local needs with household affordability when setting council tax rates.

“It is not appropriate for the Welsh Government to set an arbitrary level of council tax increase. The setting of budgets, and in turn council tax, is the responsibility of each local authority,” she said.

Flintshire County Council Leader Dave Hughes has been approached for comment.