Low council tax rise aims to cushion blow of future hikes

COUNCIL tax payers in Carmarthenshire could face a huge hike in their bills next year the county council has warned.

Plans to raise council tax bills by 2.9 per cent in Carmarthenshire this year were announced yesterday.

However, council leader Meryl Gravell has warned tax payers face "huge hikes" for the following year — possibly by almost 12 per cent. Speaking about the 2010/11 rise of 2.9 per cent, Councillor Gravell said she hoped the increase would be one of the lowest in Wales.

The rise was approved by Carmarthenshire Council's executive board at a meeting yesterday, and will now go before full council within the next month.

The rise is significantly lower than the 3.3 per cent increase the council were considering in December.

This follows a report from head of finance Chris Moore, which suggested lowering the figure "to minimise the impact on the local taxpayer".

The new figure is in line with inflation, which jumped to 2.9 per cent last month.

But the bad news is Mr Moore's report went on to predict enormous council tax rises next year, with an 11.93 per cent rise earmarked for 2011/12 and a further nine per cent rise in 2012/13.

This news comes as the authority is to receive an increase of just 1.8 per cent in its settlement from the Assembly — the worst in years.

It is having to estimate what it will get in the following years, with worst case scenario predictions suggesting year-on-year decreases.

Mr Moore said: "While it remains a fact no-one appears able to quantify the true extent of the problems (with public finances), one needs only to look at the Assembly Government's settlement for 2010/11 to realise the next few years are going to be extremely challenging.

"The period of continued growth in the annual budget is at an end, and is potentially going to be replaced by a period where services will need to contract or cease to be provided altogether."

Council's deputy leader Kevin Madge said: "This is the best we can do to help the local taxpayer."

Opposition party Plaid Cymru will meet to discuss its reaction to the rise later this week.

daniel.fisher@swwmedia.co.uk