The Council’s 2026/27 budget has now been agreed by Elected Members, following a recommendation by Cabinet. The decision took into consideration feedback received across two phases of public consultation and will ensure there are no cuts to services despite continuing financial challenges.
Alongside protecting our key services, next year’s budget increases the funding to schools to cover all pay and non-pay pressures in full, provides an extra £1 million for Additional Learning Needs schools, and increases the level of the Council’s local Business Rate Reduction Scheme to benefit businesses across Rhondda Cynon Taf.
Councillors agreed next year’s budget when Full Council met on Wednesday, March 4, following the recommendation of Cabinet at its recent meeting on Monday, February 23. These decisions have enabled the Council to set a legally balanced budget for 2026/27 in line with the laid down legal timescale.
Officers provided regular reports to Cabinet that outlined the budget-setting process, with January’s update taking into account Welsh Government’s final settlement – an agreement on December 9 that allowed the 2026/27 Welsh Government Budget to pass. This included extra funding for councils and represented a 4.5% funding increase for Rhondda Cynon Taf – this being the same as the average level of funding increase provided to Welsh councils. When this funding was taken into account, along with updated expenditure pressures facing the Council, a budget gap of £6.4 million remained.
The second phase of the Council’s annual budget consultation took place in early February 2026, focusing on a draft budget strategy – key elements of which are highlighted below. The process included face-to-face public drop-in events in Pontypridd, Mountain Ash and Treorchy, as well as engagement with specific groups and an opportunity for residents to take part online.
In total, 85% of survey respondents agreed with the increase in funding for schools, 80% agreed with the Council’s approach of continuing to deliver efficiency savings and 78% of respondents agreed with the changes to fees and charges.
Key elements of the budget for 2026/27
The budget will further increase the level of support the Council’s local Business Rate Reduction Scheme provides to qualifying businesses across Rhondda Cynon Taf. The local scheme provided £300 to qualifying businesses when it was introduced in 2020/21 and the level of support increased to £500 for 2025/26. The budget will further increase the level to £625 for next year, with a further rise to £750 for 2027/28. It is estimated that around 1,400 local businesses will benefit.
The Council’s 2026/27 budget will continue to prioritise schools, as it has done in previous years including when there have been large financial challenges. In 2026/27, the budget will cover all pay and non-pay pressures for our schools and provide a further £1 million to support our Additional Learning Needs schools. Overall, the schools’ budget will increase by £10.4 million or 4.8% for next year and will be fully-funded.
Over many years, the Council has delivered significant efficiency savings that do not largely impact upon the delivery of services. This has been a Council-wide programme that included saving £13 million in the current-year budget (2025/26) and £40 million over the past three years. The newly-approved budget for 2026/27 includes a further £6.335 million in efficiency savings.
Council fees and charges will include a standard 5% increase, recognising the significant increase in the Council’s cost base and the subsequent level of subsidy that is provided. A number of specific exceptions to this standard increase have been agreed, as set out in a report that was considered alongside the budget by Cabinet during January 2026.
Next year’s agreed budget will ensure the Council continues to act reasonably in relation to council tax levels, balancing the impact upon services and the ability of the public to pay. The budget includes a 4% council tax rise, which is again likely to be one of the lowest levels compared to other Welsh councils. The remaining budget gap of £911,000 will be managed by using the Council’s Transition Funding reserve.
Councillor Andrew Morgan OBE, Leader of Rhondda Cynon Taf Council, said: “The Council’s 2026/27 budget will now be set after recommendations by Cabinet were approved by Elected Members at the Full Council meeting on March 4. The better-than-expected settlement from Welsh Government has enabled us to protect our priority areas and deliver a budget that contains no cuts to services that people rely upon, despite significant financial challenges facing local government. This position has once again been greatly helped by the work undertaken across all service areas, to identify and deliver multi-million pound efficiency savings.
“There is lots to celebrate in the agreed budget for next year. It will fully-fund all pay and non-pay pressures in our schools, equating to an increase in the schools’ budget by more than £10 million – as we continue to prioritise this area across consecutive Council budgets. As part of this, we’ve also allocated an extra £1 million to our Additional Learning Needs schools, while around 1,400 businesses in Rhondda Cynon Taf will benefit from an increased level of rates relief from next year – which will then be increased again in the following financial year.
“I’d like to thank residents who took part in our two phases of consultation for their feedback that has helped to inform the 2026/27 budget. The feedback is invaluable to help us understand if our priorities are aligning with those of residents, assisting us in making important decisions across our services. Education, social care, environmental services and our roads are some of the areas that people consistently tell us are most important to them, and I’m confident our budget best funds these priorities, alongside our significant capital programme which is being delivered year on year.
“While the Council’s 2026/27 budget is largely positive, we don’t underestimate the likely financial challenges ahead – with the cost of living remaining very high and demand on our services ever-growing. Officers are already looking ahead to budget-setting for 2027/28, to understand the financial position early and to once again consult residents as a key part of the process.”
Posted on 06/03/2026