Council tax increase of almost 10% now proposed in Conwy

A council tax rise of almost ten per cent is now being proposed by Conwy Council in a bid to balance its books.

The figure is less than the 12.5 per cent previously mooted but the local authority’s cabinet member for finance warned that the strategy is not without risk.

Whilst the council will not decide on a final figure until March 2, Conwy’s cabinet and finance scrutiny committee has been debating the situation for weeks.

Faced with inflation, a lower Welsh Government settlement, and staff pay increases, Conwy is facing a £19.8m shortfall.

Earlier this month, a council report outlined a model for a 12.5 per cent council tax increase that was needed to balance the books for next year.

That figure has now been reduced to a 9.9 per cent proposed increase, and the council is looking at other ways to reduce the rise further to 9.5 per cent.

In the latest budget report, the council has found £540,000 of savings from business cases, £550,000 from energy costs and £465,000 by offsetting expected grants.

Speaking at a special meeting this week, cabinet member for finance Cllr Mike Priestley warned the strategy is not without risk.

He said: “I was here (the council’s Bodlondeb HQ) till 6pm last night and back here at 8am this morning, looking at how can we get a 9.5 per cent council tax increase, and I think that’s what we need to concentrate on.

“The political desire is clearly that there isn’t a lot of support for 12.45 per cent.

“The way energy is going, we can take an amount out of that business case with energy prices hopefully dropping, but I have to say there are risks in there.

“We certainly can manage that risk if we all work together. We will have to have our finger on the pulse from day one of that budget.

“Basically, we are looking at a gap of £1.5m to get to that 9.9 per cent. It is roughly half a million off business cases, half a million off energy, and half a million off grants. That’s how we could get to 9.9 per cent.”

Cabinet members backed the latest budget report, but a final council tax figure won’t be set until a full council meeting on March 2.

By Richard Evans – Local Democracy Reporter