Carmarthenshire Council has made significant changes to its proposed budget plan, backing down on plans for increased car park charges and public toilet closures. The Plaid Cymru-Independent cabinet has revised its initial proposals following a consultation that drew responses from over 2,900 individuals. While the council has decided against raising car parking charges above inflation and closing public toilets, a substantial council tax rise of 9.75% is still on the table for approval.
The proposed council tax increase would see Band D households in Carmarthenshire paying £1,759.07 in the 2025-26 financial year. This figure excludes any additional precepts from bodies such as Dyfed-Powys Police or community councils. The final decisions on spending allocations will be made at a full council meeting scheduled for February 26. Councillor Alun Lenny indicated that while the 9.75% council tax rise was higher than preferred, it aimed to strike a balance between protecting essential services and ensuring ongoing investments in them.
Initially, the council had considered introducing above-inflation car parking charges to generate an extra £219,000 over three years. Additionally, a proposal to save £125,000 by either transferring 14 public toilets to other organizations or closing them was also put forward. Furthermore, there were plans to reduce spending on road repairs, gully cleaning, and flood defense by a total of £300,000. However, in response to feedback from the consultation process and councillors, the cabinet has retracted all these measures.
The updated budget report indicates that the council now has an extra £1.2 million available due to lower energy costs and intends to borrow £1 million. However, the council is bracing itself for potentially higher inflation and wage increases than initially anticipated. Councillor Lenny highlighted the uncertainties surrounding future pay awards and inflation, stressing the risks inherent in the budget strategy.
Despite facing demographic pressures and rising costs, the council is expected to receive additional funding from the Welsh Government. To balance the budget, the council must implement savings, increase council tax, and adjust fees and charges. From April onwards, both public and private sector employers will face higher national insurance contributions, with expectations of central government compensation for councils.
Council leader Darren Price emphasized the financial challenges posed by a £3.5 million increase in employer contributions for commissioned workers, such as domiciliary carers. Without this additional burden, the proposed council tax rise would have been 6.25%. The draft budget for 2025-26 includes provisions to offset £3.5 million in school savings against a higher council tax level requirement.
The proposed day-to-day departmental expenditure for education, social services, and waste collection in Carmarthenshire for the upcoming financial year is forecast to reach £524.6 million, representing a substantial increase over the current approved budget. These decisions reflect the council’s efforts to navigate financial uncertainties and deliver essential services to the community. Stay tuned for further updates on Carmarthenshire’s budgetary decisions as they unfold.