CEREDIGION County Council, currently facing a council tax increase of nearly seven per cent in the next financial year, is seeking the public’s views before the setting of its annual budget.
Setting a balanced budget is a legal requirement, but with rising costs, it becomes more difficult every year without compromising essential services, the council has said.
Pressures have increased in Ceredigion due to a lower-than-average settlement from the Welsh Government through the Aggregate External Finance (AEF) rate.
Through that funding the 22 Welsh councils will receive an average 2.7 per cent funding increase, with 2.3 per cent increase minimum.
Ceredigion is one of the counties to receive that below average funding floor rate of a 2.3 per cent increase, some £3,388,000 extra for a total of £150,670,000; neighbouring Pembrokeshire also receiving a 2.3 per cent increase, significantly below inflation.
At Ceredigion County Council’s November full council meeting of November 27, Leader Cllr Bryan Davies said he wanted to maintain services as much as possible whilst keeping the rise in council tax as low as possible.
He told members that early estimates indicated that an 8.9 per cent increase in council tax would be necessary, but an improved position of 6.9 per cent has now been indicated.
The council has now launched a budget engagement exercise to gather views on how it should spend its money and how to navigate the financial challenges.
Cllr Davies said: “Setting a balanced budget is proving challenging year on year, after yet another poor settlement by Welsh Government for the year ahead. Delivering the budget in a way that maintains our services is a balancing act, and we don’t want to compromise on the services that we offer.
“With costs going up due to the cost-of-living crisis and the impact of inflation, we’re currently facing a budget gap, and an increase in council tax is something we have to consider.
“So, I would like to hear from you. Firstly, have a go at balancing the council budget with our budget simulator. Then, please submit your responses through the online survey as the results will be taken into consideration as we prepare for the 2026-2027 budget”.
