Taxpayers in Tenby have received an early Christmas present, with news that the town council has given the thumbs up to a cut in its precept requirement for the forthcoming financial year.

At their last meeting, the council agreed to set their budget for 2010/11 at £161,022.01 - a figure some £27,031.99 lower than that for the past year.

In a report on the budget presented to members on Tuesday night, it was explained that last year, the council had allotted funding from reserves for the town's Jubilee play area, which together with grant income received for the scheme and income from other sources, resulted in a precept requirement of £142,958.31.

"The town council's planned expenditure for the next financial year is £155,291.63, but members have agreed to allocate £10,000 from reserves to fund the skate park project which means that the precept requirement is £145,291.63," explained the town clerk, Mr. Andrew Davies.

"This means that when the council tax base figure is factored in, it will actually mean a reduction of 4p on the band D equivalent, from £55.78 to £55.74.

"We have been fortunate over the last few years, with prudent financial management, to have been able to build up our reserves.

"This has enabled us once again to dip into those reserves to fund capital projects and maintain the same level of service to the people of Tenby while actually reducing the cost to the individual council tax payer.

"It may not be by a great amount, but every little helps as they say," he added.