CEREDIGION County Council has targeted an “unpalatable” 13.9 per cent council tax rise along with the hikes to fees including for parking and even using the toilet after it warned that unless major changes are made the authority is “highly likely to become financially unsustainable.”

A draft budget report set to be put before the council’s Cabinet on Tuesday, 23 January paints a bleak picture of the county’s finances, with warnings of a budget shortfall of £14.5m for 2024/25 – with at least £4.1m extra need to be found despite slashing of services and budgets across council departments.

To plug the widening gap, residents are going to be asked by the Plaid Cymru-controlled council to dig deeper into their pockets during a cost-of-living crisis in a bid to keep services running.

The report says that the council budget “indicates a potential Council Tax increase for 2024/25 of 13.9 per cent" - currently the highest proposed council tax hike in Wales.

The rise would mean residents in an average Band D property forking out an extra £4 a week, or £18 a month.

By comparison, Carmarthenshire has proposed a 6.5 per cent increase and Powys County Council is proposing a 7.5 per cent hike.

A 2.6 per cent increase in the Welsh Government funding to Ceredigion County Council has done little to ease pressures, the report said, with a sizeable council tax hike needed to balance the books.

“The council should be under no illusion that the medium term financial outlook is particularly bleak,” the report said.

“Balancing the 2024/25 revenue budget with a +2.6 per cent funding increase from Welsh Government is incredibly challenging and is only possible with a highly significant Council Tax increase.”

Alongside the council tax hike, the council plans a blanket rise of 10 per cent for all car parking charges in the county “pending a brand new fee structure being brought forward as soon as is practically possible.”

The council report also says the authority will look again at plans to charge for parking on Aberystwyth promenade , with charging for car parks in Llandysul and Tregaron proposed to be reinstated.

In a bid to plug the financial black hole, the council has even proposed to begin charging visitors o Ceredigion Museum in Aberystwyth, while fees will also rise for using public conveniences.

The council, which ring-fenced the initial 25 per cent second home levy for its home-buying initiative, says the extra cash raised from quadrupling the levy will not be ring-fenced and will “revert to the general budget.”

The report says: “Moving forwards Ceredigion County Council needs to fundamentally re-evaluate its underlying purpose and relationship with its residents to include a back to basics approach focussed on providing core statutory services, predicated on appropriate levels of intervention.

“Unless there is a new era of Pay freezes and minimal Social Care cost pressures, then in the absence of re-evaluating its purpose and approach, Ceredigion County Council is highly likely to become financially unsustainable in the medium term.

“This is an incredibly difficult Budget to prepare and several of the proposals contained within it would, in normal times, be completely unpalatable to Members, Officers and Ceredigion residents. “However, we are not in normal times.

“In times of economic growth with plentiful funding, Budget decisions are easy, however in times of high inflation, elevated pay awards, significant cost pressures and declining core funding from WG - hard unpalatable decisions have to made to ensure the ongoing viability and sustainability of Ceredigion County Council.”

A review of Care Home fees is still ongoing, with a separate report on fee increases set to be released.

Final decisions on fees, tax increase and the final budget will be made in February.

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