HOUSEHOLDS in Ceredigion face higher bills as Ceredigion County Council plans to rise council tax by 3.5 per cent.

A council tax rise of 3.5 per cent is being proposed by Ceredigion County Council as it plans to also make £3.4million in cuts or savings.

Cabinet members have approved a number of recommendations related to this year’s budget which will go to scrutiny committees this month, before a final decision is taken by full council.

Council leader Cllr Ellen ap Gwynn repeated on Tuesday (February 2) her “disappointment” in the Welsh Government settlement the authority is due to receive of £109,658,000, adding that discussions about an increase in Aggregate External Finance continue.

The settlement is an increase of two per cent and was the lowest in Wales.

The cost of providing services in the standard spending assessment had increased by 3.1 per cent, said Cllr ap Gwynn, rising to £154,802k with “unavoidable pressures” totalling £6.9m, outlined by each service area during budget discussions.

Porth Cynnal and Porth Gofal, including social care services, have the highest cost pressures totalling £3.6million and a pay rise of 1 per cent for staff will total £2.2million, although no formal agreement is yet in place.

A workshop had been held with councillors, she added, who have recommended splitting the £3.4million of savings between a 1 per cent cut to each service area and £2.1million of savings to be made against leadership group corporate revenue budget.

The cost of the Covid-19 pandemic and fire authority levy increases also have to be taken into consideration, cabinet were told.

Cllr ap Gwynn said a 3.5 per cent rise was not “unreasonable” and a “mid-range increase” with a higher increase meaning fewer cuts, but also a lower rise would mean more savings would be required.

Cabinet member for finance Cllr Gareth Lloyd said that council tax was the “most contentious issue” and the increase after the past year and the “challenges to people” not increasing could be an option.

However, he added “no-one wants to increase council tax but neither do the public want to lose services. We would have to increase it by 12 per cent to cover costs of services and there’s not a chance of doing that.”

He added that the council was “between a rock and hard place” as he, and the rest of the cabinet approved recommendations including a 3.5 per cent rise in council tax.

Opposition leader Cllr Ceredig Davies said a 3.5 per cent rise would lead to more “families struggling to pay”.

The recommended base budget total of £154,736,000 was approved and a Band D council tax of £1,412.59 (not including precepts) is also recommended.