Carmarthenshire faces a likely 9.75% council tax increase from April due to financial pressures, despite budget changes.
Cllr Alun Lenny spoke on February 17, stating that a 9.75% rise is higher than they wanted. He explained it balances key services protection and future investment. They planned savings and revenue measures. Above-inflation parking charges would raise £219,000; transferring 14 toilets (or closing them) would save £125,000.
Cuts to road repairs and flood defenses were proposed, saving £200,000. However, the cabinet retracted these plans after consultation feedback. Now, the council has £1.2 million extra due to lower energy costs. They plan to borrow money using £1 million, but must set aside more for inflation and wages.
Cllr Lenny emphasized the budget strategy’s risks. Uncertainties remain over pay and inflation, and savings measures also have “delivery” risks. Social care needs to provide about half the savings. The council faces demographic and inflation pressures.
They expect Welsh Government funding. To balance their finances, they must save money and raise taxes. Public sector bodies must pay higher national insurance from April. Central government may compensate councils in June, but it’s uncertain if this extends to commissioned workers.
Council leader Darren Price mentioned a £3.5 million bill, covering higher contributions for these workers. Without it, the tax increase would be 6.25%. The 2025-26 budget draft prevents schools from making £3.5 million cuts. This is balanced against the higher council tax level needed.
Carmarthenshire’s daily expenses are predicted to be £524.6 million, including education, social services, and waste collection. This is nearly £35 million more than this year.