Cardiff Council's Cabinet met on Thursday, 8 January 2026, to discuss the upcoming budget and a significant UK Government regeneration initiative. The meeting confirmed the council's ability to balance its 2026-27 budget without frontline service cuts, thanks to improved funding from the Welsh Government and identified internal efficiencies. The Cabinet also agreed to proceed with a bid for the Pride in Place programme, which aims to invest £20 million over ten years into one of Cardiff's most deprived areas.

2026-27 Budget Modelling and Consultation Report

Councillor Chris Weaver, Cabinet Member for Finance, Modernisation & Performance, presented an update on the council's budget for the 2026-27 financial year. Following the Welsh Government's provisional settlement, the anticipated budget gap has been reduced from £38 million to just over £22 million. This improvement is attributed to a 4.2% uplift in funding from the Welsh Government, which is higher than initially expected.

The council is now in a position to balance its budget without making cuts to frontline services. This will be achieved through approximately £40 million in internal efficiencies and savings, alongside a potential modest increase in council tax, the level of which will be determined following public consultation. The consultation, which will run until 1 February 2026, aims to gather public priorities for investment, with schools and education, supporting vulnerable children and families, and supporting vulnerable adults and older people identified as key priorities from the Ask Cardiff survey.

Councillor Rodney Berman questioned whether the improved financial position represented a missed opportunity to address other areas of concern, such as street cleaning or pothole repairs, suggesting that the consultation could have explored a wider range of potential spending priorities. Councillor Weaver clarified that while the focus is on avoiding frontline cuts, the consultation does include a question about the possibility of a higher council tax rise to fund further service increases, and that all public feedback will be considered. Councillor Lancaster raised concerns about the quality and quantity of data from a shorter consultation period and questioned if the proposed funding increase for schools would be sufficient to address deficit budgets. Councillor Weaver acknowledged the challenges schools face, particularly with fluctuating pupil numbers, but reiterated that no cuts to school funding are planned and that the proposed 5.9% increase is significant.

The Cabinet agreed to note the updated budget position, approve the approach for consultation, and formally launch it. The Chief Executive will also take necessary actions regarding any staffing implications arising from efficiency savings.

Pride in Place Programme

Councillor Lee Bridgeman, Cabinet Member for Housing & Communities, introduced the Pride in Place programme, a UK Government initiative providing up to £20 million over ten years for communities most in need. Cardiff's proposal is to submit a bid for the Ely and Caerau areas, identified as the most deprived in the city based on the Welsh Index of Multiple Deprivation (WIMD) 2025.

Councillor Russell Goodway declared a prejudicial interest in this item due to having written a letter of support for the scheme. Councillor Peter Bradbury also declared a similar interest. Both councillors recused themselves from the discussion and decision-making on this item.

Councillor Rodney Berman expressed concerns about the programme bypassing devolution and noted that while funding for one area is welcome, it means other deprived communities will miss out. He specifically mentioned Trowbridge, which has areas identified as being among the most deprived in Wales. Councillor Bridgeman explained that the Pride in Place funding is a specific UK Government tool, and that the council's own regeneration strategy can be used to support other areas like Trowbridge, potentially freeing up Welsh Government funding for those communities.

Councillor John Lancaster inquired about how the success of the project would be measured, particularly given the focus on capital projects versus ongoing funding needs. Councillor Bridgeman stated that success would be judged by making people's lives better within the communities, providing access to decent services and improved facilities, rather than solely by rankings on deprivation indices. He also highlighted that the programme would be community-led, with Neighbourhood Boards responsible for developing regeneration plans.

The Cabinet agreed to delegate authority to the Director of Economic Development to complete and submit the Pride in Place programme pro-forma to the UK Government, based on the proposed approach of focusing on Ely and Caerau. This decision was made after considering the programme's alignment with UK and Welsh Government policies, its potential to address socio-economic disadvantage, and its impact on children's rights and the Welsh language.