Council tax rise confirmed for residents in Merthyr Tydfil county, as reported by Wales Online. The decision came following the approval of the budget at a full council meeting held on Wednesday, March 5th. The increase will see residents facing a 5.5% rise in council tax in the upcoming year, with the amount paid for a band D property to Merthyr Tydfil Council set at £2,083.21 for 2025-26, an additional £108.60 per year or £2.09 per week. Notably, 84% of properties within the county borough are valued at bands A to C, meaning a significant proportion of council taxpayers will pay less than £2,083.21.
The council’s budget for the next year has been set at £172.51 million, with the Welsh Government settlement resulting in a 4.9% funding increase for Merthyr Tydfil. This increase, alongside adjustments from the previous year, means an additional funding of £9.65 million for the council. Initially facing an £8.77 million budget gap, adjustments were made, reducing it to £5.28 million, considering various factors such as the revenue settlement impact, pay pressures, adjustments to the council tax base, service demands, review of assumptions, unrealised savings in the previous year, and contribution to general fund reserves. No additional savings were requested from schools for the 2025/2026 period, but the budget acknowledged the ongoing financial challenges in local government.
In line with inflation, there will be a standard 2.5% increase in non-regulated fees and charges effective from January 1. The approved budget includes £3.27 million in savings from council departments, distributed across various sectors like education, social services, neighbourhood services, economy and public protection, and governance and resources. Additionally, a savings target of £354,000 has been set through the council’s transformation programme. To address the budget deficit, £1.5 million of earmarked reserves will be utilised, sourced from the surplus in 2023/24, without proposal to use general reserves.
Councillor Andrew Barry of the Independent group expressed disappointment with the budget, emphasising the need for longer-term financial planning rather than short-term fixes. While highlighting the challenges faced by the council, other councillors shared their perspectives on the budget decisions and expressed concerns over the allocation of funds and sustainability of grants. Councillor Louise Minett-Vokes stressed the importance of maintaining essential services while optimising resources, particularly in social services. The cabinet members for education and housing welcomed the positive aspects of the budget settlement while acknowledging the broader context of financial constraints.
Despite differing opinions among council members regarding budget allocations and strategies, the approved budget is set to address immediate financial challenges while paving the way for ongoing discussions and potential adjustments in the future. The increase in council tax, though significant, reflects the complex considerations and trade-offs involved in local government financial planning. As Merthyr Tydfil residents prepare for the impact of the council tax rise, ongoing transparency and communication about budget decisions remain crucial for fostering community understanding and engagement.