Denbighshire warns of council tax rise as funding gap widens
Denbighshire County Council is preparing for a council tax increase due to a funding shortfall despite a 5% increase in Welsh Government funding.Summary
Denbighshire County Council (DCC) is facing a budget shortfall and is likely to increase council tax rates. While the Welsh Government’s Provisional Funding Settlement for 2026/27 includes a 5% increase – amounting to £10.841m – approximately £4.797m is already allocated to cover externally mandated staff pay rises. This leaves Denbighshire with an estimated actual increase of 2.7%, which is higher than several neighboring Welsh councils like Conwy, Flintshire, Gwynedd, and Anglesey, all of whom are set to receive a 2.3% increase.
The council’s cabinet report indicates a current budget requirement of £21.011m, exceeding the £14.868m increase from the Welsh Government settlement. The report states that a 10% settlement would have been needed to cover all financial pressures. Although the increase is positive, it doesn’t eliminate the financial challenges, necessitating both a council tax increase and budget balancing measures.
An additional £112.8m in funding for councils is expected to be announced with the Final Welsh Government Budget on Tuesday, and the DCC cabinet will discuss these matters at a meeting in Ruthin County Hall on the same day.
(Source：Denbighshirefreepress Co Uk)