Council tax to go up 3.55% in Merthyr

COUNCIL tax in Merthyr Tydfil will go up by 3.55% next year after the council agreed its budget.

Budget proposals were agreed by the cabinet and full council last Wednesday which will see a Band D council tax of £1,728.98 for 202122, an increase of £59.27 for the year, or £1.14 per week.

The cabinet report said as 84% of the properties within the county borough are valued at Bands A to C, a significant proportion of council tax payers will be liable to payments less than £1,728.98.

It adds that the council tax reduction scheme for 2021-22 adopted by the council in January provides support with council tax payments for those residents eligible to apply.

The council reduced its opening budget gap for next year of £3.58m to a £288,000 budget surplus through: £2.78m from the Welsh Government settlement; £216,000 through the social services grant; £1.27m in Covid demands being funded by Welsh Government; £764,000 in money for further commitments; £150,000 through the corporate vacancy factor which reflects the salary savings resulting from the natural delay between a post becoming vacant and being filled; £350,000 in employee severance costs; and £1.04m in service cuts.

With £106,000 from measures withdrawn at full council, £1.9m in additional demands and £705,000 going towards a council service capacity exercise, this resulted in the £288,000 surplus.

But with the council tax increase proposal of 3.55%, this results in a net loss of income of £343,000 compared to what it would have been with a 4.99% increase as originally modelled.

This means the council has a £55,000 budget deficit which it plans to address through a cut in the pay award provision.

This leaves the council with a revenue budget for the next financial year of £133.34m.

The council received a 4.6% increase in its funding from the Welsh Government for next year.

Council leader Cllr Lisa Mytton said: “I’m satisfied every possible step has been taken to keep the increase to the barest minimum required to allow us to keep on providing the services that we do.”