Draft plans for council tax rise of 9.5% on Anglesey

Dale Spridgeon – Local democracy reporter

People living on Anglesey face a potential 9.5% council tax rise in the next financial year.

Draft proposals for the tax rise were published in a report to councillors on Anglesey Council’s corporate scrutiny committee, which met on Wednesday, January 15.

The proposals also included a plan to keep the council tax premium for second and empty homes at 100%.

The committee was requested to agree a formal response to the executive on the council’s proposed revenue budget package for 2025/26.

The proposed council tax rise would be made up of an 8.85% rise from the council and a 0.65% rise to cover the fire service levy.

It would take Band D property charges to £1,721.70 per year.

Funds

The premium on empty and second homes would remain at 100% – with a proposed £1m of funds raised going help first time buyers. the meeting heard.

The package also described a draft sum of £2m being released from the council’s general balances and earmarked reserves, to balance the budget.

Revenue savings cuts of £699,000 were also proposed.

A provisional funding settlement increase from the Welsh Government of 3.6% was announced in December last year.

The final settlement is not expected until late February, 2025, with the final budget proposal subject to further scrutiny by the committee.

A final draft will then be recommended for approval by the executive on February 27, 2025, and a final decision over the 2025/26 revenue budget made by the full council on March 6, 2025.

The budget has been set during a “significantly” challenging time for the UK economy and for public sector service finance, a scrutiny report noted.

Change

But the change of the UK government had seen “a change in approach to funding public services resulting in additional funding for public services,” the report said.

Presenting the draft budget, Cllr Robin Williams said forecasts for a funding settlement expected from the Welsh Government had been “horrifying” but he was “pleased that the island had received 3.6% – better than expected”.

Despite that, it was still “one of the worst in Wales” and he said that rural local authorities, such as Gwynedd and Montgomery, were “suffering” under the formula the Welsh Government used, with higher amounts going to cities.

He said the authority was “looking at a funding gap of £10.79m, before any cuts, using reserves or increasing council tax”.

“This year we are able to close the gap, but if we were to do it just with council tax that would be over 20% and I don’t think anyone in this room wants to consider that,” he said.

It was “not possible” with just reserves and savings in one year to bridge the gap, he said.

“We are asking you as a scrutiny committee to consult with the public over our draft proposal, which will use some reserves, an increase in council tax and some cuts,” he said.

“The biggest challenge” was the impending increase in National Insurance, he said.

There was also “risk” because of inflation and demands on services, particularly in the area of social, children and adults services.

“We have to be careful with our budget…not to use all of our reserves… we don’t know, down the line, what’s coming,” he added.

‘Keen’

The executive was, he said, “keen” to protect the budgets of schools and it was also hoped they could develop more trainee roles “bringing new blood into the council”.

Cllr Williams added: “We ask you for the right to go out to consultation with the the public, to raise a council tax 9.5%, to use additional funding to meet the need in the children and families, to protect school budgets from cuts, to use income from the council tax premium to assist first time buyers, to provide additional funding for social services.”

The council’s Chief executive Dylan Williams said: “A lot of forecasting has happened and planning in the dark but the forecasting has been quite close, due to the experience of our team and executive.”

The council’s finance boss Mark Jones said the settlement from the Welsh Government had been “better than expected but it has not been easy – although easier than expected to balance the budget, but there is still a lot of uncertainty.”

A vote over the draft package recommendations was agreed, with two amendments added, including members attending a confidential briefing regarding specific details over Mona Workshop, and for an option for respondents to add their age in the forthcoming public consultation.