GWYNEDD residents could face a significant council tax increase of 8.66%.
The figures come as Cyngor Gwynedd continues to struggle with “financial challenges” amid a rising demand for services.
They described a need for more government funding.
For Band D properties the figure would see an increase of £2.92 a week, a meeting of Cyngor Gwynedd’s cabinet heard recently.
The figure includes levies, including a net increase of £427k to the North Wales Fire and Rescue Authority, equivalent to an increase of 0.43% in council tax.
Proposals to increase the rate was approved in principal at a meeting of Cyngor Gwynedd’s cabinet last Tuesday, (February 11).
During the meeting held at the council’s Caernarfon HQ, approval was also given to a plan to set its budget of £355,243,800 for 2025/26.
This would be funded by £246,818,190 of government grant cash and £108,425,610 of Council Tax income – an increase of 8.66%.
A capital programme of £53,736,190 in 2025/26 was also approved. The council also formally approved savings, proposed at the same meeting, to the value of £519,000.
Gwynedd’s cabinet members will be asked to recommend the figures for the final budget decision, at the Full Council meeting on Thursday, March 6.
A council report stated: “The 2025/26 budget seeks to protect the services the Council provides to the people of Gwynedd and recommends an 8.66% increase in Council Tax to achieve that objective this year.
“Even then, we will need to look for savings and cuts to set a balanced budget, and forecasts suggest there will be further pressure in aiming to set a balanced budget for 2026/27.”
In setting its balanced budget for 2025/26, a report stated the budget is being set “at a time when Welsh local authorities continue to face financial challenges, where the addition to the [government funding] settlement does not meet the increase in demand for services”.
It added: “Cyngor Gwynedd has received a grant increase for 2025/26 of 3.2%, equivalent to a £7.5m increase in external funding.
“In addition, a further £6.5m has been included to reflect the transfer of responsibilities to the settlement, which is also included in the grant.
“By 2025/26, our spending would need to be increased by £24.2m to ‘stand still’.”
This included £7.7m to meet pressures on service budgets.
The report added: “It is seen in this report that demand pressures on services, as well as inflationary pressures indicate that a combination of Council Tax increases and the introduction of a new programme of savings and cuts must be considered if a balanced budget is to be set for 2025/26.”
And considering its long term strategy the council report stated: “When announcing the draft 2025/26 settlement in December 2024, the Welsh Government has not given an indication of the increase in grant that will be paid to Welsh local authorities from 2026/27.
“However, the outlook is not positive, and Cyngor Gwynedd, like all other councils, is expected to receive below-inflation increases in future – and perhaps no increase at all.
“In considering the increased demand for services on the Council, in the face of shrinking provision because of cuts, there will need to be an early, fundamental consideration of what the Council can provide and how.
“Further saving plans have been programmed for 2026/27 and beyond but work will commence immediately after setting the budget for 2025/26 on updating a MediumTerm Financial Plan that recognises the situation as envisaged ”
A Cyngor Gwynedd spokesperson said: “At its meeting on February, 11, 2025 the Council Cabinet approved recommending to the Full Council at it’s meeting on March 6, 2025 that a budget of £355,243,800 should be set for 2025/26, to be funded by £246,818,190 of Government Grant and £108,425,610 of Council Tax income, which is an increase of 8.66%.”
During the meeting officers urged anyone facing difficulty in paying their council tax to seek help or further information about the different discounts and exemptions available.
Help can be found at: www.gwynedd.llyw.cymru/CostOfLivingCrisis
