A funding gap of £6.3million in next year’s council budget has been calculated following the recent announcement on Welsh Government funding.

Earlier this week officials in Cardiff announced an increase of 4.3 per cent in local authority settlements, a better offer than predicted during budget preparations for Pembrokeshire County Council.

The increase for Pembrokeshire is 4.9 per cent – an extra £8.051million compared to last year – when adjusted for transfers into the settlement.

Pembrokeshire is ranked third in terms of the overall changes in the Provisional Local Government Settlement after being in ninth place in 2019/20.

It leaves a funding gap of £6.3million.

Earlier this month cabinet member for finance Cllr Bob Kilmister said that a draft budget had been worked on using a flat-line budget and one with an increase of 3.1 per cent.

Cllr Kilmister told the local democracy reporting service: “This year’s provisional settlement is better than we anticipated and we welcome the extra funding which is urgently required to support services which are currently under huge pressure.”

An updated report to full council on Thursday (December 19) includes the recommended increase in council tax of five per cent which would result in £14million of extra funding.

“After funding the £0.6m net increase in levies, capital financing costs, net

investment income and CTRS [council tax reduction scheme] for 2020-21, there would be £13.4m available for bids for growth on flat-line budgets.

“Those services not successful in bids for growth will be required to fund all their inflationary, demographic and legislative pressures for 2020-21 using cost reductions/efficiencies,” the report adds.

It includes other options for council tax rises from 2.5 to 10 per cent.

Councillors will discuss the settlement and the updated budget report during full council, 10am at County Hall.