Pembrokeshire County Council has set the lowest Council tax in Wales.

At a full meeting of the authority yesterday (Thursday) morning, members approved a 3.5 per cent increase - itself the second lowest rise in the Principality and one of the lowest in the whole of the UK.

It means that a Band D Council Tax for the next financial year will be £528.02 for county council purposes.

The average increase in Wales is more than eight per cent and the highest proposed increase by a Welsh local authority is 14 per cent.

Proposing the new Council Tax, the leader of Pembrokeshire County Council, Clr. Maurice Hughes, said it was part of a "prudent budget" designed to deliver good quality services and real progress.

He told the meeting: "The hallmark of this council is its commitment to its customers and its financial prudence and efficiency.

"Don't just take my word for it. Pembrokeshire is the only Council in Wales which has completed its programme of Best Value Service review and we have had unrivalled results.

"Four of our services have been rated by independent, external inspectors as 'excellent' and were the first to be so in Wales. A further 13 have been rated as 'good'. No other council approaches this record of achievement.

"I have no problem in accepting the wooden spoon for having the lowest Council Tax in Wales."

He accepted there were areas for improvement. "Any organisation that thinks it cannot get better is doomed," he added.

Clr. Hughes said the council's expenditure in 2003-2004 would be in the region of £300m. of which £41m. would be spent on a range of capital projects.

Around £6m. has been allocated for education projects, including £300,000 to bring broadband capability to all the county's schools with similar sums following in each of the next two years.

Some £1.5m. has also been budgeted for the installation of central heating in council houses.