Pembrokeshire County Council still has the lowest council tax in Wales - for the sixth year running. The average Band D council tax in Pembrokeshire next year has been set at £638 which is £77 less than the next lowest. This represents a 3.95 per cent increase.

The leader of Pembrokeshire County Council, Clr. John Davies, said: "This is a very difficult year financially with only a two per cent increase in our grant from the Welsh Assembly Government. "But we are focused on ensuring we maintain both the high quality and the range of services to our customers.

"This budget strikes a balance. It is a prudent budget, but one which allowed people-focused services to be sustained.

"Any increase in council tax is unpalatable but this increase is realistic."

He added: "Pembrokeshire is one of the best- performing councils in Wales and we shall ensure this continues."

Clr. Davies said the council would continue its programme of investment in capital projects with new schools at Prendergast and Narberth opening this year and the completion of Haverfordwest Leisure Centre, which he called the county's 'wow factor development'. There would also be more money to fund the education service and especially social services where Pembrokeshire County Council has increased spending by 258 per cent since 1996. During the same period, overall council spending has gone up by 92 per cent.

The council tax demand will also contain the sums of money collected by the council on behalf of other bodies. For instance, there will be a sum for Dyfed-Powys Police Authority and there will be different sums for each of the community and town councils throughout the county.