In September 2025, as part of Phase 1 of this consultation, we asked you to share your opinions on Council Services and Council Tax setting for the 2026/27 financial year.
The results of Phase 1 were as follows:
Service priorities
Participants ranked their service priorities from 1 to 6, with 1 being the priority, as follows:
- Social Care, Health & Youth Participation
- Education, Culture & Welsh Language
- Economy, Regeneration Leisure & Tourism
- Climate Change & Communities
- Financial Sustainability, Assets & Commercial
- Transformation, Governance & Social Partnership
Council Tax
When asked about Council Tax:
- 50.35% voted to maintain as many services at the current level as possible, even if it means an increase in Council Tax above 5%.
- 49.65% voted to cut services to keep any increase in Council Tax to a minimum.
Next steps
Following Phase 1 of the budget consultation, we have been able to reduce the projected budget gap for 2026/27 from £9.1 million to £5.6 million*.
We have projected a 2.3% increase in our grant from the Welsh Government. If the final settlement provides an increase above 2.3%, every additional pound will be used directly to further reduce the remaining budget gap.
Why We Still Have a Budget Gap
We still face a budget gap because the cost of delivering essential services is rising faster than the funding we receive. Inflation, higher pay and contract costs, and pressures across key services all contribute to rising expenditure. However, the annual grant funding from Welsh Government does not increase at the same pace, creating a gap between what it costs to deliver services and the money available to fund them. As a result, the Council does not currently have enough funding to continue delivering all services at their existing levels for 2026/27.
We are returning with Phase 2 of this consultation to share the results of Phase 1, update on the current financial position, and ask more residents to share their views on service priorities and Council Tax setting for the coming financial year.
Before you move on to the questions, a reminder of Council services can be found here.
For more information on how the Council's budget is spent, visit: https://www.merthyr.gov.uk/council/council-finances/how-the-councils-budget-is-spent/
This survey closes at Midnight on Thursday 18th December 2025.
*Subject to change following Welsh Government final settlement.