Welsh council back 4.6% council tax rise

Bruce Sinclair, Local democracy reporter

Council tax in Pembrokeshire is to rise by 4.6 per cent, equivalent to an extra £76 for the average property, less than half last year’s increase.

At the February 20 special meeting of Pembrokeshire County Council members consider a previously Cabinet-backed recommendation for the setting of the 2026/27 council budget, with a council tax increase of 4.6 per cent, equating to an increase of £75.99 for the council part of the overall council tax bill for the average Band D property.

Last year, Pembrokeshire’s council tax increased by 9.35 per cent, lower than that year’s Cabinet recommendation of 9.85 per cent.

The overall council tax bill is made up of the county council element, the largest part, the Dyfed-Powys Police precept, and individual town or community council elements.

A report for councillors, presented by cabinet member for finance Cllr Alistair Cameron, recommending the 4.6 per cent rate, said a better-than-expected Welsh Government settlement for Pembrokeshire left a funding gap for 2026-27 of £14.7m for the overall budget.

It said: “The most significant cost pressure for the 2026-27 budget continues to be within Social Care, with a projected total increase in pressure of £12m for 2026-27 representing 42 per cent of the total council service pressures for 2026-27; and £30.5m across the remainder of the medium-term financial plan.”

It added: “Individual School balances continue to be a concern in the Medium Term with 47 of our 61 schools continuing to rely on their reserve balances to fund in year expenditure. This is not a sustainable position, with the current trajectory suggesting school balances will be in an aggregated deficit position by 2027-28.”

The budget included a year-on-year increase in the net budget for schools of £4.7m, Cllr Cameron said.

However, the budget pressure for individual school budgets was listed in the report at £6.7m, with some £2m of savings identified.

Members also heard an expected underspend in the current financial year’s budget, currently estimated at £4m, would be held in reserve to support any schools in difficulty.

Aside from the usual budget concerns it said a number of front-line services had been identified “which require investment to address fragile service levels and areas of concern” including: school improvement support for secondary schools causing concern; building maintenance to support the additional catch-up work required to corporate buildings; highways ‘beat gangs’ to support highway maintenance works; and additional highways gully maintenance.

Conservative Group leader Cllr Di Clements welcomed the “more realistic council tax increase” than previous years, stressing taxpayers needed “consistency from one year to the next,” adding: “I’m hoping that’s the end of very high council tax increases we’ve seen of late.”

Citing recent poor Estyn reports on some county schools, Cllr Clements asked for a “cast iron guarantee” that any surpluses from this year’s budget would be ring-fenced for any schools needing support.

Members backed the 4.6 per cent rise after a failed last-minute call for amendments to the budget made by Independent Group leader Cllr Huw Murphy – essentially aimed at reducing savings in the education budget – was defeated by 28 votes to 21, with one abstention.

The actual budget was backed by 34 votes to 16, with one abstention.