An Independent group of council members have proposed an amendment to Pembrokeshire County Council’s budget for 2023/24.

With budget discussions ongoing, Pembrokeshire is facing a potential council tax increase of 7.5 per cent.

Speaking during a discussion of the 2023 budget at a meeting of PCC’s Cabinet on February 13, Cabinet Member for Corporate Finance Alec Cormack proposed a 7.5 per cent increase to fellow members, which was later supported. This would – if agreed by a meeting of full council on March 2 – increase the annual bill of the average Band D property by £62.46, to £1,311.63.

Pembrokeshire has a funding gap of £18.6m, and a projected funding gap £50.7m up to 2027.

Today (February 20) however, a group of independent county councillors have proposed an amendment to PCC’s budget for 2023/24, stating that the the Local Authority sets a Council Tax rise of 5.5%, which they say will alleviate the financial pressure on taxpayers throughout the County.

Giving formal notice of the amendment to the budget with ten working days’ notice as required under the Council’s constitution, Cllr Jamie Adams said: “£1.394m is required to fund this prudent reduction which is to be funded by an additional transfer from reserves in this exceptional time.

“The confidence to consider this action is derived from the Quarter 3 Budget Monitoring Report to Cabinet (February 13) which states that the January variance projected outturn to rolling budget stands at £1.272m.

“This figure has largely been achieved by improved budgetary outcomes for vacancy management and improved investment income.

“Neither of these elements are susceptible to great change at this juncture and therefore reliable in producing an underspend to the 2022/23 budget which is effectively put into reserves. It is my proposal to draw upon this capacity,” continued Cllr Adams, who said that the proposal is designed to alleviate the immediate pressure on hard pressed Council taxpayers whilst maintaining the service budgets recommended to Council.

“I recognise that this proposal is a short term measure that will have consequences in the MTFP if further cost balancing cannot be achieved.

I will be pleased to expand upon this proposal at the Council budget setting meeting,” he added.

At the meeting on February 13, Cllr Cormack said Pembrokeshire still had the lowest tax rate in Wales: “Despite having increases of 12.5 per cent, 9.92 per cent, five per cent, 3.75 per cent and five per cent since 2018-19, the council continues to have the lowest council tax ‘Band D’ in Wales for 2022-23 at £1,249.17,” he remarked.

“Our neighbouring local authorities Ceredigion and Carmarthenshire were at £1,447.90 and £1,396.04 respectively.

“If the council had Ceredigion’s ‘Band D’ council tax for 2022-23, it would have had an additional £11.104m income and if it had Carmarthenshire’s ‘Band D’ council tax for 2022-23, it would have had an additional £8.206m income.”

A report for members stated: “Having the lowest council tax ‘Band D’ means that any council tax percentage increase in Pembrokeshire generates less income than the equivalent increases in other Welsh local authorities.”

Based on the current 2022-23 figures, a one per cent increase in council tax would net Pembrokeshire an extra £12.49 a year for each Band D property, £1.99 less than neighbouring Ceredigion, £1.47 less than Carmarthenshire; and £5.19 less than highest council tax authority Blaenau Gwent.