CEREDIGION, Pembrokeshire and Carmarthenshire will all see their budgets cuts next year, after an announcement by the Welsh Government’s finance secretary.

Ceredigion will see a 0.3 per cent reduction in its overall budget for 2018/19, Pembrokeshire 0.4 per cent and Carmarthenshire 0.5 per cent.

Finance secretary Mark Drakeford said it was a "realistic settlement" given Treasury cuts to the overall Welsh Government budget but Welsh Local Government Association leader Debbie Wilcox said councils could not keep making the "harshest" of cuts while maintaining service levels.

All councils will see a cut in 2018-19, apart from Cardiff - Wales' largest council - which gets an increase of 0.2 per cent.

Monmouth, Merthyr Tydfil, Blaenau Gwent, Caerphilly, Powys and Conwy all see the largest cut of one per cent.

Mr Drakeford said councils will have to look at "other sources of income" including council tax and charges as well as their reserves..

Council budgets are made up of the grant from the Welsh Government, council tax, and charges for services such as parking.

Mr Drakeford said: “This is a realistic settlement that continues to protect local government from significant cuts against a backdrop of reducing budgets from the UK Government.

“Within the settlement funding has been provided for essential public services such as education and social care.

“This Welsh Government remains committed to protecting vulnerable and low-income households from any reduction in support under the Council tax Reduction Schemes, despite the shortfall in the funding transferred by the UK Government following its abolition of Council Tax Benefit.

“While Welsh local government continues to be protected from the impact of austerity explained elsewhere, I recognise that this settlement is still a real terms cut in core funding, when authorities face real pressure from such things as an ageing population, pay and other inflationary pressures.”

A formal consultation on the budget settlement will run until November 21.