Narberth Town Council has agreed its budget and precept for 2026–27.

At the Ordinary Meeting held on January 13, members of the Town Council resolved to set a precept representing an increase on the previous year.

This means that the Narberth Town Council element of Council Tax will increase by 9%, which for a Band D household equates to £64.36 per year — an increase of £4.58 per year (around 38p per month).

The decision reflects rising costs, inflation, and the need to ensure local services are properly funded, while also making careful use of reserves to avoid further pressure on Council Tax.

The Council says its decision reflects a number of unavoidable financial pressures, including:

• rising operating and contractual costs

• inflationary increases across utilities, services and insurance

• the continued provision of local services now delivered by the Town Council

• the need to maintain adequate reserves to ensure financial resilience and audit compliance

As part of the 2026–27 budget-setting process, the Town Clerk undertook a detailed review of the Council’s cost centres and overall financial position.

This review identified a number of areas where historic budgets no longer reflected the actual cost of delivering services and meeting statutory and operational requirements.

It was also noted that the Town Council precept had not increased for several years. The agreed precept for 2026–27 therefore represents a necessary adjustment to ensure that key cost centres are adequately funded, services can be delivered responsibly, and the Council’s finances are placed on a sustainable footing going forward.

In setting the precept, Members considered alternative options, including the use of reserves, and agreed a balanced approach that addresses current cost pressures while protecting the Council’s long-term financial resilience.

In parallel with setting the annual budget, the Council has also considered the role of reserves in supporting costs and projects that fall outside routine day-to-day expenditure. A number of areas have been identified for potential funding through the earmarking of reserves, subject to further Member consideration and formal approval.

These include, but are not limited to:

• winter resilience measures, including the provision and management of grit and salt bins

• one-off or capital works relating to Council assets and infrastructure

• service transition and resilience costs arising from responsibilities increasingly delivered at town level

• digital, governance and compliance improvements required to support effective and efficient Council operations

“The budget and precept were debated and approved in public session,” said Kris O’Kane, the Town Clerk and Responsible Financial Officer.

“The Council has taken the view that it is appropriate to consider the use of reserves for specific, non-recurring purposes, rather than increasing the annual precept further to fund costs that do not form part of ongoing revenue expenditure.

“Any future earmarking or use of reserves will be brought forward through the appropriate committee and Council processes and will be subject to formal approval in line with the Council’s Financial Regulations.

“Narberth Town Council remains committed to openness, responsible financial management, and the effective delivery of services for the community.”