Council tax in one part of Wales to increase by almost 10%

Council Tax Increase of Nearly 10% in Pembrokeshire
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Pembrokeshire residents are facing a substantial increase in council tax this year, with rates set to rise by almost 10%. The proposed hike could see the average annual household bill exceeding £2,000, but councillors have rejected the possibility of a 17% increase. The decision comes as Pembrokeshire Council’s cabinet considers various options for the council tax component of the upcoming 2025-26 budget.

The suggested increases for an average Band D property range from 9.85% to 16.58%, with the council’s Liberal Democrat group proposing a 12% rise. Despite historically low council tax rates in Pembrokeshire, recent years have seen significant hikes, leading to a shift in the county’s ranking compared to other areas in Wales. The council members were presented with a report indicating a decrease in the projected funding gap for the upcoming year, thanks to a more favourable local government settlement from the Welsh Government.

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However, the report also highlighted the necessity for substantial budget savings and a significant council tax increase to ensure a balanced budget for 2025-26. Concerns were raised about the potential impact on council services if budget savings are not implemented. Councillor Joshua Beynon, cabinet member for finance, outlined a series of budget proposals, including a 9.85% council tax rate, which members approved.

Council leader Jon Harvey emphasised the importance of maintaining essential services while navigating financial constraints. The decision on the final council budget will be deliberated by all council members in a special meeting scheduled for February 20. The Dyfed-Powys Police precept, part of the overall council tax bill, is also set to increase by 8.6%, further adding to the financial burden on residents.
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Neighbouring authority Ceredigion is considering a similar tax increase, with discussions ongoing regarding the rate adjustment. The potential 9.85% rise in council tax in Pembrokeshire would bring the average Band D bill to £2,020.21 before additional town or community council precepts are factored in. These developments highlight the financial challenges faced by local authorities in balancing budgets while ensuring essential services remain accessible to residents.

As residents brace themselves for higher council tax bills, the council is tasked with finding a balance between meeting budgetary requirements and delivering quality services to the community. The impending decision on the council tax increase underscores the ongoing financial pressures on local governments and the need for careful financial planning to sustain vital services in the long term.

Overall, the proposed council tax hike in Pembrokeshire reflects a broader trend of rising living costs and budgetary constraints facing local authorities across Wales. The council’s efforts to strike a balance between financial sustainability and service delivery will shape the community’s access to essential amenities and resources in the coming years.