10% Council Tax rise put on Hold ‘for two weeks’

A decision on setting Pembrokeshire’s budget, with an expected council tax rise of nearly 10 per cent, has been put on hold for two weeks, on the eve of the county receiving a better financial settlement from Welsh Government.

The setting of the council’s budget for 2025-’26 was due to be decided today, February 20 at a special meeting of full council, with a 9.85 per cent council tax increase recommended, adding £148.81 to the average Band D property’s bill.

The recommendation was moved by Cabinet member for finance Cllr Joshua Beynon, seconded by Leader Cllr Jon Harvey.

However, former council leader Cllr Jamie Adams proposed the meeting be deferred to an as-then undetermined future date, saying the meeting was held too early, providing an incomplete financial report while awaiting the final Welsh Government financial settlement and a potential increase in other forms of funding, which could change the council’s financial position.

Part of Cllr Adams’ concern was the possibility the Welsh Government local government settlement may increase from the 3.6 per cent rate publicised, with the final figure estimated at 3.8 per cent putting some £560,000 extra into the council’s coffers, with a potential knock-on effect on revenue or council tax rates.

Since the meeting ended, Welsh Government has now announced Pembrokeshire will receive a 3.8 per cent increase rather than the previous 3.6.

“Today is not the day for prudent decision making, today is the day when we might make a mistake,” he told councillors, adding: “I just think the starting gun has gone off too quickly.”

Members heard any deferment would be to March 6, with a legal obligation to set a budget by March 11 at the latest.

Following a call from Deputy Leader Cllr Paul Miller, members agreed to a half-hour suspension of the meeting to iron out discussions on the call.

On their return, Cllr Miller proposed an amendment to Cllr Adams’ call, the meeting being suspended and an alternative date of March 6.

A voice of concern was raised by Cllr Mike Stoddart, who called for a deferment later that day, a later meeting leading to a “take it or leave it” situation where there were no alternatives to the budget proposed.

The two motions saw overwhelming support, with 55 votes for and three against, the budget decision now being made on March 6.

Shortly after the meeting, the Welsh Government publishes its Final Budget 2025-26 in the Senedd, which includes a guaranteed 3.8 per cent funding floor for all local authorities, boosting funding for Pembrokeshire and neighbouring Ceredigion amongst others.

It also includes a raft of other funding for local government Wales-wide, including £5m to improve playgrounds and play facilities for children and an extra £5m to support leisure centres to be more energy efficient.