From 3.8% to massive 9.9% increase, how much councils are raising tax

COUNCIL tax rises have been confirmed across North Wales for the coming financial year. People across the region will be paying more from April as councils look to balance their books.

But the amount people will pay varies depending on where you live. And anyone living in Conwy faces the biggest percentage increase in their council tax.

Members agreed to raise bills by 9.9% - the biggest increase in Wales.

Below, we have rounded up the increases agreed by each council in North Wales for the coming year:

ANGLESEY

Anglesey council has agreed plans to set a council tax increase of five per cent - one of the lowest in North Wales.

The figure would take Anglesey County Council’s Band D charge to £1,435.86, an increase of £68.40, or £1.32 per week.

The figures came during a meeting of the council executive last weekwhere a ‘prudent budget’ was set.

On Thursday, March 9, the full council will be asked to adopt the proposed final budget of £172.548m and the council tax hike.

It will also be asked to back a rise on second homes council tax premiums from 50% to 75%, while the empty property council tax premium will stay at 100%.

The council also dipped into its £3.7m reserves in the face of “continuing financial challenges” amid the cost-of-living crisis.

The full council will also be asked to use reserves, to meet a possible 7.0% pay increase for council staff in 2023/24 rather than face cuts.

The final budget proposals for 2023/24 include services cuts of more than £700,000.

The council said that rising energy costs and inflation; greater service demands; a potential pay increase for staff and less funding from Welsh Government in years to come are set to impact the 2023/24 budget.

Finance portfolio holder Cllr Robin Williams said there was “sadly, no magic hat we can use to pull out more money”.

The island’s local authority still faced “significant financial challenges” which were “far from over”, he said.

“It is only through being prudent and with careful financial management that we can ensure a balanced budget this year,” said Cllr Williams.

“With our financial position unlikely to improve next year either, we face even greater challenges ahead.

“We will continue the approach of utilising a sensible mix of efficiency savings, careful use of reserves and small increases in Council Tax.

“This is the correct and proper way to ensure that the County Council continues to deliver vital front-line services and that burden of delivering a balanced budget does not weigh too heavily on the island’s residents.”

Council leader Cllr Llinos Medi said: “We have already spent a decade trying to defend local residents and communities in the face of severe funding cuts.

“We face significant financial challenges in both 2023/24 and 2024/25, with costs still expected to rise due to inflation and increased service demand.

“Unfortunately, there is little prospect that the funding we receive from Welsh Government, via the UK Government, will be enough to cover all of these increases in costs.

“My executive believe this is a budget which will allow us to protect front-line services; as well as meet the growing demand on Adults’ and Children’s Services and homelessness prevention.

“I am well aware of the impact the increase in inflation, interest and borrowing rates, and mortgage costs are having on the people of Anglesey, communities, organisations and businesses.

“Our proposed increase would ensure our council tax bill remains the lowest in North Wales and one of the lowest throughout Wales.

“We have used more of our reserves to ensure the increase is kept as low as possible.”

She added the budget would continue to protect front-line services, and “safeguard some of the most vulnerable people in our communities.”

GWYNEDD

Gwynedd council is to raise its council tax by 4.95% - but has pledged to help any households already struggling in the cost of living crisis.

The latest tax increase by Cyngor Gwynedd adds up to an additional £1.45 a week or £75.59 annually for a Band D property.

The rise comes amid what has been previously described as a ‘tsunami’ of costs to the council.

It has also seen a rising demand for its services, particularly in homelessness and social services, including children’s care.

The figures were approved during a meeting of Cyngor Gwynedd’s Cabinet which today (Thursday, March 2) set a budget for the financial year 2023/24.

The council had received an increase of 7%, or £14.6 million, in the grant it receives from Welsh Government for 2023/24.

But, according to the council, this “fell short” of what it needed to maintain local services at current levels.

The council’s revenue costs have increased by £27 million since setting last year’s budget.

Members resolved to bridge the gap by implementing £5.2 million of “efficiency savings” while increasing council tax by 4.95% for 2023/24.

Councillors agreed to the recommendation to set a budget of £318 million for 2023/24, £228 million of which will come from the Government Grant and £90 million from Council Tax.

Members also agreed to establish a capital programme of £67.7 million to fund schemes such as school improvements and housing schemes over the coming 12 months.

Councillor Ioan Thomas, Cyngor Gwynedd’s Finance Cabinet member, said: “The Westminster Government’s financial decisions back in the autumn continue to send shockwaves through local government with councils across the country wrestling with inflated energy, goods and staffing costs.

“While Cyngor Gwynedd is in a stable financial position relative to most councils thanks to sound financial planning over many years, we are not immune to Uk-wide economic problems and difficult decisions have had to be made.

“Whilst we have kept the increase in Council Tax to a minimum, we are very aware that any increase may cause difficulties to households which are already struggling.

“We would urge anyone who finds themselves struggling to keep up with their Council Tax payments or other bills to seek out help, there is information available on the Council website.”

Councillor Dyfrig Siencyn, Leader of Cyngor Gwynedd, added: “The cost of living crisis means that Council services are seeing a surge in demand and costs.

“We are spending £32,000 more due to an increase in the number of children being looked after by our social services and the homelessness services is costing us £6 million more than it did this time last year.

“Since the extent of the financial challenge became apparent in the autumn of 2022, additional savings of £6.4 million have been found across all Cyngor Gwynedd departments, implemented over more than one financial year, starting from next month.

“Thankfully, we have also been able to allocate the additional income from increasing the Council Tax Premium on second homes to tackle homelessness, savings identified will have the least possible impact on frontline services.

“There may be no end in sight to the financial pressures facing Cyngor Gwynedd. All of us as members of this Council are determined to continue to protect our most vulnerable residents and key services.”

Forecasts suggest there will be further pressure as the council aims to set a balanced budget for 2024/25. Conwy

Council tax in Conwy county is to soar by 9.9% - the biggest increase in

Wales. This means, for an average band-d home residents will pay £1,580.53 in council tax a year - or £142.38 extra.

The decision was confirmed at a meeting last week at Bodlondeb, where 36 councillors voted in favour of the new budget compared to 13 who voted against the proposals.

It is understood to be the highest rise in Wales this year ahead of Newport’s council tax increase which was confirmed as 8.5% rather than the originally proposed 9.5%.

DENBIGHSHIRE

Council tax will increase by 3.8% in Denbighshire, after councillors heard that the county had received an increased settlement from Welsh Government of 8.2%.

The settlement is above the 7.9% Welsh average increase and considerably higher than in the neighbouring county of Conwy, where it was 7.3%.

A budget report presented to councillors listed pressures of £25.1m and a funding gap of over £10.8m. Included in a long list of financial pressures were £3.2m of pay increases, £2.89m of inflation costs, inflation’s impact on schools, amounting to £3.9m, and £8.18m of care-associated costs, including Real Living Wage payments to staff.

To cover all these costs, Denbighshire would have needed a Welsh Government settlement of around 14.5%.

The council plan to fill the gap by using savings in its capital savings budget, unused COVID contingency funds, and a surplus of £3.8m following a review of a pension fund, amongst other savings.

FLINTSHIRE

Flintshire Council last week passed a council tax rise of 3.99% after a tense meeting. It was rubber-stamped at a meeting of the full council at County Hall.

Along with the council tax rise, there will be an increase in car parking charges in council-run car parks. The tax increase is lower than the overall average in Wales, and will enable the authority to plug a budget gap of around £18m.

It means an annual increase of £71.75 per year meaning £1,521.33 will be paid in council tax on a Band D equivalent property - a £1.38 per week increase.

WREXHAM

Council tax in Wrexham is set to rise by 6% from April. A meeting of Wrexham Council ratified the budget for 2023-24 last week, rubber-stamping the six per cent increase recommended by the Independent/conservative led Executive Board last month.

An amendment from opposition Labour councillors tabled in an attempt to reduce the rise was withdrawn. This means that council tax on a Band D property will be £1,451.33 for 2023-24.

The leader of the opposition Labour group, Ruabon Cllr Dana Davies did propose an amendment suggesting surplus money from the Clwyd Pension Fund re-evaluation could be used to bring the proposed increase down to four per cent, seconded by Llay Cllr Bryan Apsley.

But the council’s chief finance officer Richard Weigh advised that the money had been earmarked for PAYE, and other pressures already included in the budget. Cllr Davies withdrew the amendment but said the Labour group would not be supporting the council tax increase.

As a result of the budget set, there will be no cuts to council services or redundancies.