Ceredigion council ended the last financial year in a better position than expected, with an underspend of nearly £300,000, in part due to council tax premiums like those on second homes.

In a report before Ceredigion County Council’s July Cabinet meeting the council’s financial position at the end of the 2025-’26 financial year is highlighted.

The quarter four figures report says that, after a quarter three forecast of an underspend of £107,000, the council’s financial position improved to an underspend of £278,000.

This underspend will be moved into general balances, report for members says, adding the final position results in the council’s general balances ending the year at £7.3m - 3.3 per cent of the council’s 2026/27 budget.

The report says individual service positions within the council have improved since the previous quarter, and the financial position in relation to Ceredigion schools and their balances compares favourably with other local authorities.

It says, on council tax, although the overall collection rate has declined slightly compared with the previous year, this has been outweighed “by a higher volume of properties remaining subject to a council tax premium,” such as second homes and empty properties, which has lead to an overachievement of £1.577m.

It says the “overall positive outturn position has therefore enabled some transfers to earmarked reserves to be actioned to help mitigate key financial risks and commitments”.

These include £250,000 ringfenced for the centenary Urdd Eisteddfod to be held in Ceredigion in 2029; £212,000 to increase the cost & inflationary pressures reserve to £1m; £253,000 ringfenced for future planning enforcement activity; £2m set aside in recognition of the ongoing risks and challenges to children’s out-of-county placements; and a £239,000 top-up to the Community Housing Scheme reserve to ensure it is maintained at £2m.