25 percent increase on second homes council tax premium

A council has approved one of its “most challenging” budgets to date after overcoming an initial £14m funding gap – increasing its second homes council tax premium to 100%.

Members of Anglesey’s Full Council voted in favour of a net budget of £184.165m which will mean a 9.5% Council Tax increase (8.6% for Council Services and 0.9% for the Fire Levy).

This will see an average Band D bill rise by £136.44.

Lowest rates

Anglesey still has the lowest council tax in north Wales and amongst the lowest in Wales.

During its meeting of the full council today (Thursday, March 7)  it also approved increasing the Council Tax premium for second homes from 75% to 100%.

The council heard how additional funding for Welsh local authorities from Welsh Government had included £332k for Anglesey.

The funds had meant the council had been able to reduce a proposed increase in Council Tax, reduce cuts to services– including for the school budgets – and reduce the use of reserves to balance the budget.

Anglesey’s Finance portfolio holder, Councillor Robin Williams said: “As in previous years, we have focused our efforts on striking a balance between service cuts, raising Council Tax and using council reserves to balance our Revenue Budget.

“We have been fortunate that consequential funding from the Welsh Government and an improved financial position in 2023/24 gave us the option of tempering our initial budget proposals and their impact on residents.

“We have used this extra funding to reduce cuts to services and introduce a smaller increase in Council Tax than initially imagined.”

Challenges

Cllr Williams added: “Unfortunately, we expect even greater challenges during 2025/26 and beyond, with costs rising due to inflation, growing service demand, and the prospect of less funding from Welsh Government.”

A recent budget consultation provided an insight into the priorities on Anglesey residents, which included support for the Council’s Budget strategy of safeguarding services for the most vulnerable people in our communities and protecting school budgets.

Anglesey Council Leader, Councillor Llinos Medi, said said she was “grateful” to those residents who took part in a recent budget consultation.

She said: “It was pleasing to see the feedback provided supporting our Council Plan’s strategic objectives as education, schools, supporting the vulnerable and recycling were among the top priorities.

“We have already spent more than a decade trying to defend residents and local communities in the face of severe funding cuts.

“Every local authority in Wales faces significant financial challenges in trying to balance the budget and we do not expect things to get any easier over the next few years.”

“Anglesey still has the lowest council tax in north Wales and it is amongst the lowest in Wales.

“However, we realise that times are tough and anyone who does find themselves in financial difficulties are encouraged to see if they qualify for help through the Council Tax Reduction Scheme.”