Local residents in Pembrokeshire, one of the most popular parts of Wales, are facing the possibility of a significant hike in council tax bills. The proposed increase of almost 10% could see taxpayers in the region paying well over £2,000 annually. The Pembrokeshire Council’s Cabinet initially backed a 9.85% rise, with a final decision scheduled to be made on March 6.
The council had initially faced a funding gap of £26.9 million, which would need to be addressed through a combination of budget savings, council tax increases, and other financial measures. The Welsh government’s local government settlement provided the county with additional funding of around £500,000, reducing the funding gap slightly. Despite this, the council is still under pressure to address various financial challenges, including increased national insurance contributions and demands for social care services.
The proposed council tax hike has prompted opposition groups, such as the Independent group and the Conservative group, to put forward alternative proposals. The Independent group advocates for a 9.35% increase, while the Conservative group suggests a 7.5% rise, aiming to utilise a higher proportion of the second homes council tax premium for certain budget allocations.
In recent years, Pembrokeshire has had one of the lowest Band D council tax rates in Wales. However, with the proposed increase, the average annual bill for a Band D property could rise significantly. The Dyfed-Powys Police precept is also set to increase by 8.6%, adding to the overall council tax burden for residents.
Neighbouring Ceredigion Council has already supported a 9.3% increase in council tax, highlighting the financial challenges faced by local authorities across Wales. The final decision on the council tax increase in Pembrokeshire will have a direct impact on residents who may have to budget for higher bills in the upcoming financial year.
The ongoing debate surrounding council tax rates reflects the broader financial pressures faced by local authorities in Wales. Balancing the need to generate revenue with residents’ ability to pay remains a key challenge for councils across the country.
As the final decision approaches, residents and local officials in Pembrokeshire are closely watching the developments and potential implications of the proposed council tax increase. The outcome of the March 6 meeting will determine the financial landscape for the region in the coming year.