Welsh councils to receive £50m capital funding boost

Welsh councils will benefit from £50m in additional capital funding this financial year, helping them manage rising costs and invest in vital local services. 

The funding, distributed to all 22 local authorities using the general capital formula, can support a wide range of priorities — from fixing potholes and repairing highways to supporting community schools and flood defence schemes.  

Councils can use the money to replenish reserves drawn on during the year or reduce borrowing, easing pressure on future budgets. 

First Minister Eluned Morgan said:

“Local authorities provide essential services, so I'm really pleased the Welsh Government is able to provide additional funding this year to help our councils invest in vital infrastructure, such as roads, schools and flood defences, which will benefit communities across Wales.”  

Jayne Bryant, Cabinet Secretary for Housing and Local Government, said: 

"This funding gives councils the breathing space they need at a challenging point in the financial year. Whether that means replenishing funding used fixing roads after a difficult winter, keeping capital programmes on track, or reducing borrowing costs — this money will make a real difference to communities across Wales." 

Councillor Anthony Hunt, WLGA Spokesperson for Finance said:

“Councils will warmly welcome this additional investment, which provides important flexibility at a key point in the financial year. This funding will help local authorities manage rising costs, maintain investment in essential infrastructure, and continue delivering improvements in communities, from road repairs to schools and flood protection.

“It will make a real, practical difference on the ground, supporting councils to respond to local priorities and keep vital projects moving forward.”

ENDS

Notes to editors

Allocations are based on a total of £50m distributed using the 2025-26 general capital formula.