COUNCIL TAX in Pembrokeshire is to rise by less than a mooted 16.3%, to 12.5%, after an 11th-hour alternative budget proposal was narrowly-backed.

It was recommended the council tax rate in Pembrokeshire increased by 16.3 per cent at its March 7 meeting of full council.

The 16.3% rate would have seen the basic council tax level – before town/community precepts and the police precept are included – rise by £219.02 for the average Band D property, taking it to £1,561.98.

Pembrokeshire is currently facing a projected funding gap of £31.9m, partly due to a lower-than-expected Provisional Local Government Settlement.

That figure has increased from £27.1m in December, and £28.4m in January, when it was described as “by far the highest funding gap in our history,” by Cabinet Member for Corporate Finance Cllr Alec Cormack.

At the March 7 meeting there was a call by deputy leader Cllr Paul Miller for an eleventh-hour change to the budget.

He proposed a 12.5% increase, partly using additional reserves of £1.5m, as well as £1m target for council efficiency savings.

Cllr Miller said that would see a weekly council tax increase for the average property of £3.22, or £167.86 a year.

Members backed Cllr Miller’s amendment, by 30 votes to 26, with one abstention.

The final council tax bill for residents would be higher than this as town and community council precepts and the police precept would be added; with second home-owners and empty property owners facing even higher bills as both have a premium rate.

The premium rate on second homes for the next financial year is 200%, effectively a treble rate, with a more complicated approach on empty properties of 100% after 24 months, 200% after 36 months, and 300% after five years.

The 12.5% rise comes on top of previous increases of 12.5%, 9.92 per cent, five per cent, 3.75 per cent, five per cent and 7.5 per cent.

The county had faced the possibility of even higher increases, of 18.94 per cent, and an eye-watering 20.98%, before Cabinet members backed the 16.3 per cent rate proposal last month.

Neighbouring Ceredigion backed a council tax increase of 11.1% on February 29.

High tensions and political manoeuvring at County Hall

• Understanding Thursday’s epic meeting – by Tom Sinclair

TODAY’S full council meeting at Pembrokeshire County Council was marked by high tensions and political manoeuvring as councillors faced a critical decision on the budget and Council Tax proposals. The meeting centred around whether the Council would accept the proposed budget, including a contentious 12.5% Council Tax increase, amidst threats of a coalition between Independent Group councillors and Conservatives to block the budget.

Initially, there was no agreement on a deal to resolve the impasse, leading to a compromise proposal by the Cabinet to adopt a 12.5% Council Tax rise. This proposal sparked a heated debate, requiring more officer input than usual, with significant contributions from the Monitoring Officer and Head of Legal, Rhian Young, and the Director of Resources, Jon Haswell. Young addressed allegations of “strongarm” tactics by officers against certain councillors, explaining the legal and procedural consequences of not setting a budget. Haswell expressed his reservations about the Council Tax rise but emphasised the need for a balanced budget.

The debate saw various procedural twists, including attempts to suspend standing orders to introduce amended budget proposals. These amendments aimed to reduce the proposed Council Tax increase from 16.31% to 12.5% through a combination of measures, including using more reserves and restructuring back-office functions.

The discussion also featured a mix of technical difficulties, pointed critiques, and strategic political moves. Councillor Jamie Adams attempted to shift the debate towards broader issues with local government funding and criticised the administration’s past reluctance to raise Council Tax more boldly. However, Cllr Tessa Hodgson countered Adams’s points, focusing on the present administration’s priorities and responsibilities, especially regarding Social Care.

The amended budget, proposing a 12.5% Council Tax rise, ultimately passed with a vote of 32-26, narrowly averting a crisis. This outcome reflects the Council’s challenging position, balancing fiscal responsibility with political realities. Conservative Group Leader Di Clements expressed concerns about the process and the reliance on trust for last-minute budget changes.

The meeting highlighted the complex dynamics within Pembrokeshire County Council, including tensions between different political factions, the critical role of council officers in guiding procedural and legal matters, and the challenging task of setting a budget in a politically charged environment. The approval of the 12.5% Council Tax rise, while resolving the immediate budgetary crisis, sets the stage for future debates on fiscal strategy and governance within the Council.