Ceredigion County Council is set to get a cash boost which could lead to a lower council tax rise than the 9.9 per cent predicted after the Welsh Government announced a new funding floor for Welsh councils.

Publishing its final budget on 20 February, the Welsh Government said it had introduced a guaranteed 3.8 per cent funding floor for all local authorities.

Ceredigion County Council has been set to hike its council tax by 9.9 per cent from April, but has previously said that any uplift in Welsh Government funding would mean a lower tax increase for residents.

The initial settlement for Ceredigion saw a 3.6 per cent increase in funding from April, with the announcement set to boost council coffers by 0.2 per cent.

In documents prepared for budget discussions, the council said that it was lobbying the Welsh Government for a “funding floor in the 2025/26 Local Government Final Settlement of no less than 4.3 per cent.”

A 4.3 per cent funding increase “would lower the potential council tax increase by circa two per cent,” the report said.

A 3.8 per cent increase should see the 9.9 per cent increase lowered, but with discussions on the council’s budget continuing before a final decision in March, the final increase is not yet known.

The finalised Welsh Government budget also includes further funding for local government in the form of £5m to improve playgrounds and play facilities for children, and an extra £5m to support leisure centres to be more energy efficient.

Cabinet Secretary for Finance Mark Drakeford said: “This agreement demonstrates what can be achieved when the Welsh Government and Members of the Senedd work together constructively on areas where we have common ground.

“The additional investment will make a real difference to communities across Wales, particularly in rural areas.”