Merthyr Tydfil Council Tax Rise: Expected Increase for Next Year

Merthyr Tydfil might raise council tax by 5% next year. This is according to new council budget plans for 2025/2026. If tax increases, the council would gain £300,000 per 1%. No final choice has been made yet.

The council faced an £8.77 million budget shortfall. Now, it’s down to £5.27 million. This change reflects funding, pay, and service demands. It also covers assumption reviews and savings issues.

General fund contributions played a role too. The Welsh Government is giving Merthyr Tydfil 5.1% more funding. Gareth Lewis said schools won’t need more savings. He wants better education for young people.

The council must cover £3.31 million in extra service costs. These come from things like population growth and new laws. Managers found £3.27 million in service efficiencies. This involves budget realignment and operational savings. Grants and income generation also help.

A plan to close recycling centers an extra day failed. The council wants to keep the vacancy budget at £1 million. This reflects savings when jobs are unfilled.

The council’s net spending next year totals £172.48 million. This covers education, social services, and other areas. It also includes corporate authority and a transformation program.

Net income should reach £172.33 million. This includes government funding and council tax. But a £153,000 budget gap remains. Proposals use £1.5 million from past underspending.

This budget use is needed but unsustainable long term. The local government settlement arrives on February 25. Big changes are not expected.

The council will decide on tax levels and reserve use. They want a balanced budget for 2025/26. They will keep seeking savings long term. The plan was discussed on February 19.