PEMBROKESHIRE COUNTY COUNCIL’s Cabinet voted to recommend a draft budget prepared by officers for acceptance by the County Council.
The budget proposes to raise Pembrokeshire’s Council Tax by 5% in the year 2016/17, with further increases forecasted at the same level for each of the next five years. The Herald understands from a well-placed source there was tension between officers and Cabinet members about the amount of the Council Tax increase. However, both Cabinet members and officers presented a united front on Monday (Jan 11) The Band ‘D’ Council Tax for the Council will increase from £801.04 to £841.10.
If increases continue as forecast in 2020/21 the Band D Council Tax would be over £1,020 per annum. The CURRENT Band D Council Tax in Carmarthenshire is already over £1,075. If the Welsh Government succeeds in forcing through its reorganisation of local government, Pembrokeshire’s Council Tax payers are therefore likely to face a massive hike in the amount they pay any new local authority structure. Addressing Cabinet members, Head of Finance Jon Haswell told them that ‘any delay’ by the Welsh Government in setting its final budget in March could prove ‘very challenging’ for Pembrokeshire County Council, when it comes to finalising its policy on Council Tax.
While maintaining Pembrokeshire’s status as setting ‘the lowest Council Tax in Wales’, Council policy has shifted to increase the amount of Council Tax paid by households by 5% this year (the maximum amount permitted by the Welsh Government). In addition, the shortfall in revenue caused by the inability to raise Council Tax more sharply will need to be made up by further cuts in services and increased charges for those services the Council continues to provide.
With discussions also taking place on increased charges for services, of particular note was the decision by the Welsh Government to reduce free swimming for children and the troubling decline in user numbers that followed. The £244m to fund the Council Tax Reduction Scheme in 2015-16 has been retained in the provisional settlement for 2016-17. Unfortunately, whilst Pembrokeshire still retains 2.9% of the £244m, this has reduced from £7.2m to £7.1m. This does not cover the authority’s annual expenditure and any consequential increase in Council Tax benefit payments, as a result of increased claimant caseload or higher Council Tax levels will have to be absorbed by the Council.
Council Chief Executive Ian Westley told the meeting that it was essential to ‘grasp the nettle’ of the budget challenges in order to provide ‘sustainable services in the future’. Council Leader Jamie Adams told The Herald: “We held a budget engagement and consultation process toward the end of last year, which showed that members of the public considered increasing council tax as one of the most acceptable ways of increasing revenue.” Cabinet members made it clear that while they would fight for their budgets, there were some very tough decisions ahead.
In particular, the pressure from the Welsh Government to maintain education spending (apart from the 21st Century Schools Programme) was noted as having a likely continuing downward pressure on budgets elsewhere. Most at risk, are those services provided by the Council on a non-statutory basis. The meeting, the first webcast from the Council Chamber, provided a sobering insight into the financial challenges facing the authority. What was, however, clear is that the commitment to the 21st Century Schools programme has had and will continue to have a significant effect on Pembrokeshire’s public finances for years ahead.
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