Cardiff Council is set to launch its annual budget consultation for 2026–27, inviting residents to have their say on how the city’s resources should be allocated in the year ahead.
For the first time in many years, the Council will not be proposing any cuts to frontline services, due to a better than expected 2026–27 draft budget settlement announced by Welsh Government last month.
However, Cardiff Council still faces the challenge of closing a £22.7 million budget gap (the gap between the funding the council receives and the cost of the services it provides) while continuing to prioritise the services that matter most to Cardiff’s communities. This year, the Council proposes to close this budget gap largely through back-office efficiencies, and increased income generation.
The budget gap for 2026–27 is driven by a combination of significant demand and financial pressures. These include the impact of cost inflation on commissioned services – most notably within the care sector – as well as the ongoing effects of increased demand for services, particularly in relation to Children’s Services.
Looking ahead, further demand pressures are anticipated for Adult Services, Children’s Services, and Additional Learning Needs, all of which will require careful consideration as the Council works to balance investment in frontline services with the need to deliver efficiency savings.
These challenges underline the importance of prioritising support for the most vulnerable and ensuring that essential services continue to meet the needs of Cardiff’s communities.
Financial Outlook for 2026–27
Despite the significant financial pressures, the Council remains committed to prioritising funding for education, support for vulnerable children and adults, and other essential frontline services. These priorities reflect the feedback from the “Ask Cardiff” residents survey 2025, which highlighted schools, education, and support for vulnerable groups as the services most valued by the public.
Addressing the Savings Requirement
To address the £22.7 million budget gap, the Council will need to make efficiency savings across some service areas – expected to deliver £13.8m in savings. However, proposals include providing net additional funding, prioritising frontline services:
- An additional £13.9 million (a 4.2% increase) for schools
- An additional £9.2 million (a 8.6% increase) for Children’s Services
- An additional £8.6 million (a 4.9% increase) for Adult Services
- An additional £3.6 million (a 5.6% increase) for central education services, including home-to school transport and support for children educated outside Cardiff schools
The Council is also seeking residents’ views on Council Tax, which currently accounts for around 26% of the budget. Over the past three years, Council Tax increases have averaged 5%, below the Welsh average increases, and this financial year Cardiff’s Band D Council tax became the lowest in Wales
No decision has been taken on the level of Council Tax for 2026/27, but for every 1% increase, an additional £2 million is generated to prioritise funding in frontline services. Whatever the Council Tax level set for the next financial year, support will remain in place for those on low incomes through the Council Tax reduction scheme.
Funding Priorities for Frontline Services
The Council’s funding priorities remain clear: to protect education, Children’s Services, and Adult Services, ensuring that the most vulnerable residents continue to receive the support they need. The consultation will also ask residents for their views on whether additional funding should be provided to these areas, and if there are other services where increased investment is needed.
Cabinet Member for Finance, Modernisation and Performance, Cllr Chris Weaver said: “Cardiff’s improved funding position is welcome, but we must continue to drive efficiencies to balance the budget. Our proposals going out for public consultation prioritise support for the most vulnerable and protect frontline services, with increased investment in education and social care. The demands on Council services are rising, and the needs of those we help and support are becoming more complex – from social care, to housing support, to specialist education.
“We have made significant progress in expanding schools, building new homes, and supporting residents, and the proposals we are setting out for consultation, demonstrate our continued commitment to prioritising frontline services, while at the same time securing efficiency savings in order to meet the budget challenges ahead.”
Have Your Say
Residents are encouraged to participate in the budget consultation and share their views on the proposed funding allocations, Council Tax options, and efficiency savings.
The Leader of Cardiff Council, Cllr Huw Thomas, said: “We know that these are challenging times for everyone, and the decisions we make now will shape the future of our city. That’s why it is so important that residents take part in this consultation.
“Your feedback will help us ensure that, even as we face tough challenges, we continue to protect the services that matter most – our schools, support for vulnerable children and adults, and the frontline services that keep Cardiff moving. I urge everyone to have their say and help us build a budget that reflects the needs and priorities of our communities.”
Full details of the consultation will be available on the Council’s website from Thursday, January 8, with printed copies available in libraries, Hubs, and council buildings for those unable to participate digitally from January 12.
Cardiff Council’s Cabinet will meet on 8th January to consider the recommendations contained in the budget consultation report and a webcast of that meeting will be available to watch on the day here.
