A local Member of the Senedd has criticised the Welsh Labour Government for delivering what they describe as a “deeply unfair and damaging funding settlement” for Pembrokeshire and Ceredigion, warning that rural communities across West Wales will be forced to pay the price.

Under the draft 2026–27 Local Government Settlement, both Pembrokeshire and Ceredigion County Councils will receive just a 2.3% increase in funding, below the Wales-wide average of 2.7%.

Local authorities are already facing significant financial pressures due to rising costs in social care, education, transport and essential public services.

Samuel Kurtz, Member of the Senedd for Carmarthen West and South Pembrokeshire 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.”

Under the settlement:

The Welsh Conservative warned that councils may now be forced to consider council tax rises, further reductions in local services, or cuts to frontline support for vulnerable residents.

“Our rural communities cannot continue to be treated as an afterthought,” continued Mr Kurtz.

“Delivering services over large rural areas is more expensive, yet this settlement fails to recognise that. Pembrokeshire and Ceredigion deserve fair funding to support families, safeguard social care, and protect local jobs. It’s clear they are not getting that from Labour.”

Mr Kurtz 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.