Why are we consulting
Similar to all local authorities across Wales, Carmarthenshire County Council is yet again having to make difficult decisions on how it bridges the gap in its funding as it plans its budget for the next financial year.
Carmarthenshire County Council is facing a shortfall of approximately £25 million in its draft 2026/27 budget.
To bridge this gap, the Council has identified operational savings of over £9.5m across its services and utilised a recurrent saving of £5m from its employer contribution to the Dyfed Pension Fund. Welsh Government announced, on 24 November 2025, that Carmarthenshire would receive a provisional funding settlement increase of 2.3% - however, despite a proposed increase of 6.5% in Council Tax, the County Council still faces a budget shortfall of £3.5 million in its draft 2026/27 budget.
The above figures were prepared prior to the Welsh Labour Government’s budget deal with Plaid Cymru on 9 December 2025, which may result in an overall increase of 4.1% in funding to Carmarthenshire County Council’s budget for the next financial year. The Senedd will vote on the new deal on 20 January 2026. Until we know our final position from Welsh Government, the Council is consulting with its residents on the initial provisional funding settlement of 2.3%.
The Council has a legal responsibility to set a balanced annual budget, by ensuring that income from sources such as the Revenue Support Grant (RSG), Council Tax, paid-for services and grants is enough to cover its expenditure.
The timing of our consultation is in line with the UK Government's budget and Welsh Government’s provisional budget.
Councillors will consider the views expressed in this consultation alongside operational proposals when the budget is finally approved by Full Council in March 2026.
The budget consultation closes 1 February 2026.
How to get involved
You can let us know what you think by completing our online budget survey.
Alternatively, you can request a paper copy from any of our Hwbs.
Next Steps
All views submitted during the consultation period will be analysed as part of a budget consultation report on the matter. This report will be considered by councillors when setting the 2026/29 council budget.
A copy of the budget consultation report will be available to view on the Council's website in March 2026.
