Caerphilly county borough council has unveiled its draft budget proposals for 2025/26 as part of ongoing plans to plug a £47million gap in its finances over the next 3 years.
The council’s Cabinet will consider a draft budget report this week (Thursday 16th January) ahead of a period of public consultation to gather feedback from the local community.
Cllr Sean Morgan, Leader of the Council said, “The council continues to explore ways to achieve savings to plug an unprecedented gap in our budget. A number of key savings proposals have already been progressed in 2024 and I want to encourage the community to continue to have their say and help shape further decision-making over the coming months.”
“Whilst these budget pressures are significant, we are in a strong position to face the challenges ahead due to our sound financial management over recent years,” he added.
One of the proposals in the report is a one-off use of council reserves in 2025/26 totalling £4.3million. Caerphilly has healthy reserves at present, the majority of which are ring-fenced and ear-marked for specific schemes. However, a small element of the funds can be used as a contingency if required.
Other permanent and temporary savings totalling £21.4million have also been identified to help balance the budget for 2025/26. “The one-off use of reserves and temporary savings provides a short-term fix and will buy us more time to reshape our services through our transformation programme and address the significant financial challenges that lie ahead,” said Cllr Eluned Stenner, Cabinet Member for Finance.
Another key recommendation in the draft report is to increase Council Tax by 7.9% for 2025/26.This would increase the Band D precept from £1,446.37 to £1,560.63 (ie an annual increase of £114.26 or weekly increase of £2.20).
Even with a 7.9% council tax increase, it is likely that Caerphilly will remain one of the lowest council tax rates in the whole of Wales.
“I would like to assure residents that we are doing everything possible to protect the many key services that support our communities 24/7. Please keep an eye out for the forthcoming consultation and have your say to help shape the future of the council and our services,” added Cllr Stenner
The full budget report can be found here: https://democracy.caerphilly.gov.uk/ieListDocuments.aspx?CId=128&MId=14788&LLL=0
