Council tax will rise 3.7 per cent in Gwynedd.

Councillors backed the 2021/22 budget, which includes the council tax hike, yesterday (Thursday).

The plans, which will result in the average “Band D” property paying an extra £52.92 a year, were passed by 38 votes to 13 during yesterday’s full council meeting.

Despite the draft settlement proposing the authority will receive an extra 3.4 per cent from central government in 2021/22 and covering the cost of inflation, over £30m of cuts over the past decade was said to have taken its toll on the ability to make many further cuts in service.

The report, proposed by finance chief Ioan Thomas, noted the increase was needed to protect essential services, adding it would be “impractical” and “more challenging” to identify and achieve savings across departments.

But after Anglesey Council this week suggested a cut in its proposed tax rise from 3.75 per cent to 2.75 per cent after more cash was promised by the Welsh Government, Cllr Anne Lloyd Jones sought answers on why Gwynedd Council could not consider a similar easing.

Cllr Dilwyn Lloyd said local people are “on their knees” and struggling to pay council tax, referring specifically to those earning just over the threshold to be eligible for most benefits.

“3.7 per cent is still a lot if you don’t have it,” he said.

“I know officers have worked hard on this but the people of Gwynedd are struggling and we’re rising tax every year. We need to help them.”

Cllr Gareth Thomas says not increasing the tax by 3.7 per cent would result in the need to make cuts in key services, referring specifically to business support.

While increased funding and firm financial management mean the council could avoid “knee-jerk cuts to services,” increased demand means it would not be enough alone to meet the cost of delivering services.

Speaking after the meeting, Cllr Ioan Thomas said: “The past financial year has seen Gwynedd Council overcoming unprecedented challenges to continue to deliver the services that local people need.

“Unfortunately, financial pressures associated with Covid-19 are likely to be felt for the foreseeable future and certainly for the financial year ahead.

“Given this, we welcome the fact Welsh Government has decided to reimburse a significant proportion of the additional costs the council has and will continue to incur due to the pandemic.

“The effect of the pandemic has meant it has been very difficult to deliver some of our planned savings over the past 12 months as, during this time, protecting the health and lives of the people of Gwynedd has rightly been the council’s priority.

“As a result, the council has decided to increase council tax this year by 3.7 per cent to bridge the remaining £3.5 million gap.

“This increase will allow us to continue to deliver services that are most important to the people of Gwynedd over the coming 12 months.”