Ceredigion County Council ended the last financial year actually under-spending by more than £300,000, a report has outlined.

At a Cabinet meeting on 1 July, a report put before members said the final quarter four position had improved from quarter three’s £97,000 forecast under-spend to £310,000, against a 2024/25 budget of £193.6m.

That under-spend will be moved into general balances; the final position results in the council’s general balances ending the year at £7m, equating to 3.4 per cent of the 25/26 budget.

The report for members, described by Finance Cabinet Member Cllr Gareth Davies as showing “Ceredigion was able to look after funding wisely” said: “Despite having to manage a range of budget challenges across the £193.6m Budget and the wide range of service provision that the council operates, there have been several positive outcomes across services.

“The overall position has also been helped by additional in year funding announced [by Welsh Government] in early December 2024 and also in late March 2025.”

The 2024/25 budget included £5.8m of savings and the report said that 88 per cent of those savings “are either fully complete or fully on track”, leaving five items totalling £687,000 either “partly on track or with some issues still to resolve.”

In terms of council tax collection, the report says there has been a significant decrease in the number of Long Term Empty Properties over five years empty, but only a marginal decrease in the number of second homes, both of which attract a council tax premium in Ceredigion, with a small drop on in-year general council tax collection rates of just over one per cent.

It added: “Within the overall outturn position, the current shortfall on Council Tax collection has been more than offset by the less than expected reduction in the number of second homes.

“The latter is expected to be a temporary position as the council’s council tax premiums policy has further increased the council tax premium on second homes to 150 per cent from 1 April.”

The report said: “The financial position for 2024/25 continues to demonstrate that the council’s overall financial position remains strong and resilient and that the council’s financial position is being carefully and proactively managed, despite the never-ending plethora of financial challenges.

“With £41m of Earmarked Reserves and £7m in general balances, the council’s balance sheet is financially resilient.

“However, relative to the council’s £209m budget for 2025/26, the combination of earmarked reserves and general balances only affords approximately 80 days’ worth of financial cover.

“The collective Team Ceredigion approach, from the leadership group and CLOs through to all services and budget-holders, continues to rise to meet the financial challenges head on and there is a strong and positive financial culture in place that is heavily focussed on achieving the four Corporate Wellbeing Objectives.

“The financial outlook remains challenging both in terms of delivering against the approved 2025/26 budget and the wider medium term financial outlook.”