A Plaid Cymru budget deal with the Welsh Government has prevented an “eye-watering” council tax hike in Denbighshire, a senior councillor has said.

Cllr Delyth Jones, the party’s Leader on Denbighshire County Council and Lead Member for Finance in the Cabinet, has welcomed the extra £3.9m funding secured by the deal.

This is part of a £112.8m package of funding negotiated by Plaid Cymru for local government across Wales for the year 2026/27, which is an overall increase of 4.5%. The Welsh government’s original budget plan, had it passed, would only have seen an increase of 2.7% for councils.

Denbighshire County Council has seen costs increase by £21m to £309m for the year 2026/27, which could have meant a possible rise in council tax of over 10% had the additional funding not been received.

This compares with a 4.76% increase in council tax for council services now being implemented, which equates to £85 for a Band D household.

An additional 0.46% increase in council tax is needed to cover the increase in the levy to North Wales Fire and Rescue, which equates to an overall uplift of 5.22% or £93.

The majority of the Council’s budget (around 64%) goes to pay for demand led services it is required to pay for by law, such as funding for schools, care homes and social services supporting our most vulnerable residents. This includes an extra £1.7m to support children with additional learning needs due to recent changes in legislation and the increase in demand.

Cllr Delyth Jones “As a councillor, I am fully aware that people’s household finances are under real pressure at the moment due to the increase in the cost of living. I am painfully aware of the continuing financially challenging climate within which we are all living. That’s why we were absolutely determined to keep council tax as low as possible.

“Plaid Cymru’s budget deal with the Welsh Government has secured an additional £300m for councils and the NHS across Wales, and that’s making a positive impact here in Denbighshire. The initial Welsh draft budget would have dealt a serious blow to public services in Wales - pushing councils towards thousands of job losses, forcing steep rises in council tax, and leaving the NHS with a historically low funding uplift.

“Denbighshire County Council is receiving substantially more funding because of Plaid Cymru’s negotiated deal. The extra £3.9m secured means we in Denbighshire can keep council tax lower than would have otherwise been the case and continue to invest in the crucial public services that our residents rely upon. A possible eye-watering council tax hike of over 10% has thankfully been avoided, as have substantial cuts to public services.

“Though it’s clear that the additional support won’t remove every pressure we face as councils across Wales, it does however prevent a disastrous outcome for our communities and gives us the breathing space we urgently need. For years, councils have been forced to do more with less, and it gets to a point where that approach simply isn’t sustainable. This is a significant step in the right direction, and we look ahead to the Senedd election in May as a real opportunity for new leadership and a fresh, constructive partnership for the future.”