An original Cabinet proposal of 9.75% was lowered to 8.9% following minor adjustments in the Council's funding due to the Welsh Government’s final budget, a slightly lower Fire Brigade levy, and the allocation of £0.5m from the contingency budget.
Cabinet Member for Resources, Cllr. Alun Lenny said: “This budget has been the most challenging for many years. This Council is more than £150m worse off in real terms than we were a decade ago, which means there is £150m less to spend on essential services like social care, education, highways and so on.
“Many people may be surprised to learn that only 16% of the Council's income comes from the Council Tax. Most our funding comes from the Welsh Government, which in turn depends on a block grant from the UK Government. Like all other councils, we face a most challenging time as the huge pressure on public spending and services continues.
“Carmarthenshire County Council received a Revenue Support Grant uplift of 4.1% from Welsh Government, which when added to grant transfers, is worth some £25m. Although this is a considerable sum, it is less than half the £55m that the County Council needs to maintain services at an acceptable level.
“This includes meeting the higher and growing demand for adult and children services, coupled with extra costs that are outside of our control, such as inflation, pay settlements, and the Chancellor's National Insurance changes,” he continued.
“As a result of the Welsh Government’s final budget published on 20 February 2025, coupled with taking half a million pounds from our contingency fund, the Cabinet proposed a Council Tax rise of 8.9%.
“This is much more than we would have liked in these difficult days, but as a Local Authority we must set a legal budget which strikes a balance between raising the Council Tax and protecting the essential services upon which our residents depend.
“The most unexpected blow for us as we set our Budget was the change the Chancellor of the Exchequer made to National Insurance contributions by employers. Despite the allowance promised for public services later this year, we estimate that we will still be £3.5m out of pocket. Were it not for this, the Council Tax proposal would have been an increase of 5.4% not 8.9%.
“Placed against inadequate funding and the extra National Insurance cost, is the growing demand for services. Despite the present pressures, Carmarthenshire County Council is pumping an extra £11m into adult and children care, where the demand is immense.
“This administration is determined to provide for the welfare of the rising and future generations in Carmarthenshire by also protecting funding for schools. Our children are our greatest investment as a society.
“On a positive note, a drop in fuel costs, following a huge hike two years ago due to the war in Ukraine, has saved the Council an extra £1.2m on top of the anticipated £1m. This has enabled us to respond to the public consultation by dropping the two most unpopular proposals, which were the closure of public toilets if not asset transferred, and a 10% increase in car parking charges.
“More than 2,900 people shared their views and I'm thankful to all who took part in the consultation or responded to the surveys. From the responses gathered, it's fair to say that people generally appreciate that difficult choices need to be made,” added Cllr Lenny