The amount of money being allocated to mid and west Wales councils next year has been roundly criticised – with one council warning tax rises won’t be enough to cover the gap.

Rural councils are set to receive less than their more urban counterparts next year with Ceredigion, Powys and Pembrokeshire in line for a 2.3 per cent increase.

Others in the south of Wales where Labour has traditionally had a voting stronghold will benefit from rises up to 4.3 per cent in the case of Newport – the constituency of the Cabinet Secretary for Housing and Local Government. Jayne Bryant.

Carmarthen West and South Pembrokeshire MS, Sam Kurtz has criticised the Welsh Government for delivering a “deeply unfair and damaging funding settlement”, warning that rural communities across West Wales will be forced to pay the price.

He said: “Once again, rural Wales has been pushed to the back of the queue. This is a government that talks about fairness but continues to leave counties like Pembrokeshire and Ceredigion underfunded and overlooked. A below-average settlement during a period of high inflation is completely unacceptable and puts vital local services at risk.”

Ceredigion County Council said its funding settlement “fell significantly short of the amount required to keeping sustaining the current level of public services” in the county as it received the lowest increase per head of population across all of Wales for the second year running.

A report from Gwynedd council has warned that “we have now reached a point where we cannot squeeze more of it without cutting services that would have a clear and direct impact on the residents of Gwynedd.”

Powys council anticipates a £19 million shortfall in its budget for 2026-27, despite making £52 million in savings over the last five years.

Cllr Jake Berriman, Leader of Powys County Council, and Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, commented: “Growing demand for services, inflationary pressures, and pay increases for teachers, care workers, and other staff mean we face difficult choices as we work towards setting a balanced budget for 2026-27.

“Raising council tax alone will not cover the gap. We must review which services can be sustained and continue to transform how we deliver them to ensure financial stability while meeting residents’ needs.”

Aberystwyth Town Council has passed a motion calling on the Welsh Government to provide a fairer funding package for Ceredigion County Council.

The Welsh Local Government Association (WLGA), which represents Wales’ 22 councils, said local authorities face £560m of pressures in 2026/27 – £100m more than expected – and that plugging the gap for next year would require an average council tax increase of 22 per cent or the loss of 14,000 jobs.

Sam Kurtz MS is calling on the Welsh Government to urgently review the funding formula and deliver a revised settlement that properly reflects the needs and challenges of rural counties.

The final budget will be published in January following consultation with local authorities and stakeholders.