Cardiff Council has unveiled its 2026/27 Budget proposals, prioritising no cuts to frontline services, investment in schools, services for vulnerable children and adults, neighbourhoods and cleaner streets, while managing rising costs and growing demand.
The budget proposals include significant investment in frontline services:
Education & Schools
- £14.1m increase to delegated school budgets (a 4.2% rise)
- £4.1m increase for retained education budgets (including ALN and home-to-school transport)
- Expanding the number of additional learning needs places in special schools and specialist resource bases
Social Services
- £8.9m additional funding for Children’s Services (8.3% increase)
- £8.6m additional funding for Adult Services (4.9% increase)
The proposals follow a citywide budget consultation that ran throughout January, with almost 2,000 residents sharing their views on which services matter most to them. The funding proposals set out in the report reflect the consultation results which show that education and supporting vulnerable children and adults were amongst residents’ top priorities.
The Leader of Cardiff Council, Cllr Huw Thomas, said: “Thank you to everyone who took part in this year’s consultation. Your feedback has shaped our proposals at every stage. Despite significant pressures – inflation, rising demand for social care, and increasing costs across all services – we are determined to protect what residents value most.
Subject to Full Council approval in March, this budget will see more investment in schools, children’s services, adult social care and neighbourhood improvements, while continuing to support cleaner streets, parks and community facilities.”
The cost of delivering services in 2026/27 is expected to rise by £56.2m, driven by:
- Rising demand in Children’s and Adult Services and in relation to Additional Learning Needs
- Higher prices for commissioned care, education placements, and home-to-school transport
- Ongoing inflation and pay pressures across the workforce
Following the Welsh Government’s Final Local Government Settlement, Cardiff will receive a 4.2% increase in funding – below the Welsh average – leaving a budget gap of £22.7m.
The Council proposes to close the gap through:
- £14.78m from efficiency savings, Change Programme Savings and additional income
- £7.9m raised by a 3.9% Council Tax increase
The proposed 3.9% Council Tax increase equates to around an extra £1.15 per week for a Band D household and remains among the lower rises expected across Wales.
Council Tax accounts for around 26% of Cardiff’s spending, emphasising that tax increases alone cannot plug the budget gap. Support will continue to be available through the Council Tax Reduction Scheme.
Cabinet Member for Finance, Modernisation and Performance, Cllr Chris Weaver, said: “Demand for our services continues to rise, especially in Additional Learning Needs and social care. We’re seeing more complex cases, more families in crisis, and higher costs across the sector. Despite these pressures, this budget protects the services residents told us matter most: education, supporting vulnerable people, and keeping our communities clean and safe. I’m really pleased that we did not have to propose cuts to frontline services as part of our budget consultation this year. Through efficiency savings, careful planning and responsible use of resources, we can continue to support those who need us most and invest in Cardiff’s future.”
In addition to the investment in Education and Social Services, an extra £4.5 million in one-off funding is proposed for the following frontline areas in 2026/27:
- £2m for highway maintenance (pavements, potholes, signage)
- £1.4m for street cleansing and neighbourhood improvement
- £500,000 for neighbourhood regeneration
- £400,000 for child-friendly and youth initiatives
- £200,000 for sports development grants
- Due to savings requirements, the budget assumes a net reduction of 64.2 full‑time equivalent posts
Alongside the revenue budget, the Council proposes a £1.47bn capital programme (2026/27–2030/31), including:
- £572m for new council homes and neighbourhood regeneration
- £144m investment in existing council homes stock
- £43m annual programme for new and upgraded schools
- £26m for disability adaptations
- Investment in more efficient and smaller council office accommodation, avoiding costly maintenance
- and minimising the risk of service failure in the future
- Energy efficiency and decarbonisation
- Continued development of the new Indoor Arena (developer-funded, with Council borrowing repaid through operator lease income)
The proposals will be taken to Scrutiny Committees during the week beginning Monday 23rd February, and considered by Cabinet on Thursday 27th February. Full Council will meet to vote on the budget proposal on Thursday 5th March 2026.
