A council tax rise of 3.5 per cent – £48 a year on a band D property – has been approved by Ceredigion county councillors.

Full council signed off the budget and council tax rates for 2021-22 at its meeting today after receiving no increase in its Welsh Government settlement despite lobbying.

Council leader Cllr Ellen ap Gwynn said: “We were extremely disappointed when we heard before Christmas what the settlement was", with Ceredigion being allocated a two per cent increase in its aggregate external finance (AEF) funding.

Leader of the opposition Cllr Ceredig Davies called for a 2.5 per cent increase in order for the council to “show affinity with the people of Ceredigion” who have been impacted greatly by the Covid-19 pandemic with the difference in income to be funded from reserves.

He said council tax had risen around 38 per cent in the last seven years and Cllr Keith Evans added that “some are paying as much council tax as their mortgage”.

It was not approved, with 27 votes against, 12 in favour and two abstentions, despite arguments from a number of councillors that there were many people struggling financially while others said services could be lost without sufficient funding.

Council tax not including other precepts and levies has been set at £1,412.59 for Band D properties, a 3.5 per cent increase on last year.

It rises to an average of £1,661 when police and town and community precepts are included, a report to full council states.

“Insufficient core government funding that does not keep pace with national increased costs pressures means the council needs to continue planning and implementing cost reductions and or savings for next year and for the foreseeable future,” said Cllr ap Gwynn.

Revenue estimates of £151,233,000 were approved as part of the base budget total of £154,736,000 for 2021-22.