Tenby Town Council has agreed on a budget for 2025/26, resulting in a £5.81 increase in precept for Band D properties.

Councillors met around the table in the council chambers this month, and were presented with a budget report that had been drawn up by members of the Finance and Policy Committee and members of staff.

The report explained that despite making reductions in expenditure and utilising reserves, the effect of Pembrokeshire County Council reducing the second homes council tax premium means that there would be an increase in the precept requirement.

This means that for 2026/27, second homeowners will be paying less and permanent residents will pay more.

The budget identifies a precept requirement of £296,595; up from £277,871 the previous year. This means a typical Band D property would pay a precept of £88.86. This represents an increase of £5.81 per annum or 11p per week.

The report stated: “It is helpful to understand the context for this budget. The full-time resident population in Tenby is in decline and this impacts on the income generated through the precept.

“In recent times, Pembrokeshire County Council's application of a council tax premium for second homes has increased total income.

“However, the County Council's decision to first reduce the second home premium to 150% and now this year to 125% has reduced the income of the Town Council. This represents a reduction in precept income of around £20,000.”

The report highlighted key areas of expenditure, including the fact that, as a result of budget pressures within Pembrokeshire County Council, Tenby Town Council continues to fund costs of the public toilets on Upper Frog Street, along with the operation of the town’s Library for one day per week.

The Town Council continues to support the planting and management of the gardens around the seaside town and is continuing with a programme of supporting volunteers taking on the management of gardens. It is proposed to further increase this funding with the creation of a gardens investment fund that will also be used as match funding for larger grants.

The Town Council continues to support the CIC [Community Interest Company] managing the De Valence Pavilion venue, along with the community centre at Augustus Place.

After discussing the report, it was outlined that the challenge ahead is to do pieces of work around reserves, policies, scrutiny, grant conditions, that strengthened the accountability of the Town Council’s expenditure.

It was proposed to take £50k from reserves to balance the budget.

Going forward, councillors agreed on the need to look at increasing income especially from external grants.

Whilst the Town Council has been advised that it is prudent to hold a certain amount in reserves to cover operational costs, members felt it was the right time to have a look at reserves and produce a detailed reserve policy.

With the Mayor, Cllr Dai Morgan proposing that the outlined budget be accepted and the increase in the precept be agreed, all councillors were in favour.