A meeting has heard that a council tax rise in Ceredigion could fall slightly again, after a fresh grant emerged that is likely to push a planned increase of 4.75 per cent down to 4.7 per cent.

The Welsh Government’s provisional settlements in its draft budget for county councils in Wales saw Ceredigion earmarked for a 2.3 per cent increase in funding from April next year – the lowest among all 22 local authorities.

That initial settlement figure saw Ceredigion finance chiefs outline a near seven per cent increase to council tax from next year to balance the books – down from a first mooted 8.9 per cent rise.

But a Welsh Government and Plaid Cymru agreement hashed out in December to allow the budget for 2026-27 to pass saw an extra £112.8m in additional funding for local government in 2026-27.

The new funding means that Ceredigion County Council will now receive a 4.1 per cent rise in their settlements for April – still the lowest in Wales but almost double the initial settlement, allowing the council to mitigate the effect of spiralling costs amid service cuts and council tax rises.

In budget papers to be put before Ceredigion County Council’s Cabinet on Tuesday, 13 January, plans are being put in place to reduce the council tax increase in Ceredigion to 4.75 per cent from April.

A meeting of the council’s corporate resources overview and scrutiny committee heard that financial support towards the Mid and West Wales Fire Service Levy has now dropped the expected council tax increase to 4.7 per cent.

A final budget recommendation will be made by the council’s Cabinet on 10 February.

The budget for 2026/27 – including any council tax rise – will be decided upon by full council at a meeting on 2 March.