Council tax could increase less than previously thought following a last minute windfall from Welsh Government.

Ceredigion county councillor who have been taking part in budget scrutiny at committee meetings this week have been told of a potential £1million funding boost as Cardiff announces an extra £50million to be shared with all Welsh authorities.

Council leader Cllr Ellen ap Gwynn she had received a letter from the finance minister on Thursday morning outlining the extra funding and an updated budget report would be prepared for cabinet next week.

“We will have more money than we anticipated when the officers were preparing the budget papers for us,” she said at thriving communities overview and scrutiny on Friday (February 18), adding “I very much hope it will enable use to look at less of an increase in council tax.”

Ceredigion received a  larger revenue settlement than last year with £119.419million Aggregate External Finance (AEF) allocated, an increase of 8.6 per cent, but Cllr app Gwynn reminded members that the authority was 19th out of the 22 authorities when it came to the amount awarded.

The draft budget was developed with a 4.75 per cent council tax rise, with increases of 5 and 5.25 per cent also included in the options discussed.

Cllr Marc Davies pointed out that according to RSG figures Ceredigion received more than the average per person and he would be calling for the increased allocation to be used solely to offset council tax rises.

He said he would propose “to have an option going on to full council that this additional funding we will have we can use it so that the entire sum goes against council tax in order to reduce council tax.”

Cllr ap Gwynn added: “To tell you the truth I think we will all want to see that because of the situation out in our communities, the less we can increase the council tax the better.”

“Disgusting” levels of poverty in Ceredigion were highlighted as councillors pushed back against a suggestion to increase council tax higher than proposed in the draft budget for the coming financial year.

Members of the healthier communities overview and scrutiny committee spent a number of hours discussing the draft budget for 2022/23 in relation to social care, social services, early intervention and  well-being at a meeting on Monday, February 14, before giving a view on council tax recommendations.

The committee heard from cabinet member for Porth Cynnal Cllr Alun Williams that social care was under great pressure in all local authorities and issues surrounding funding, staffing and demand had all be “exacerbated” by the pandemic and a need for sector change across the country.

Cost pressures facing Porth Cynnal, Port Gofal and Porth Cymorth Cynnar include staffing costs, inflation in externally commissioned services, increasing looked after children, Direct Payment rises, support placements, domiciliary care waiting lists, public protection investment and transport costs.

The draft budget considered by cabinet earlier this month has been prepared on the resumption of a 4.75 per cent council tax rise – £67.10 a year on a Band D property raising £2.1million  – but on Monday Cllr Alun Lloyd Jones proposed a 5 per cent rise to help reduce the savings required to be made by a council and cover a new environmental health officer role of £55,000.

Cllr Marc Davies argued against this, stating “poverty in Ceredigion is really high, it’s disgusting.”

He said that it was easy to suggest increases but “people haven’t got money out there,” and the council should look for where more savings could be made, highlighting the pay rises for councillors proposed by the Independent Remuneration Panel for Wales.

Cllr Elaine Evans said she couldn’t even support the 4.75 per cent rise “with the current economic crisis” and people were finding it “almost impossible to make ends meet.”

The total revenue settlement, known as the Aggregate External Finance (AEF) allocated to Ceredigion for 2022/23 is £119.419milllion, an increase of 8.6 per cent.

Cost pressures of all services total £13.1million a report to committee states and the overall budget is estimated to be around £166million including AEF and council tax funding.

Increases to fees and charges in the remit of the scrutiny committee will raise £155,000 additional income and a travelling savings target for offices and members of £230,000 was noted, although £113,000 is still to be found.

The committee voted against a 5 per cent increase and backed a recommendation of a 4.75 per cent increase.