Council Tax Increases Across Wales: What to Expect in 2025
Wales’ councils are planning budget increases, with council tax hikes expected in various regions due to funding gaps and rising costs
Wales, Council Tax, Budget, Cardiff, Newport, Merthyr Tydfil
Cardiff: It’s that time of year again when councils in Wales are figuring out their budgets for the upcoming year. With the new financial year kicking off in April, they’re looking at whether to raise council tax for residents.
So, how do councils get their funding? They rely on three main sources: grants from the Welsh Government, council tax, and business rates. This money helps pay for essential services like bin collections, road repairs, education, and social care.
The Welsh Government has announced that councils will receive £6.1 billion next year, which is a 4.3% increase from last year. Cardiff is set to receive the most money, around £674 million, while Newport will see the biggest percentage increase. On the flip side, Merthyr Tydfil, the smallest council, gets the least in cash terms but has a significant percentage increase.
However, council leaders have warned that this funding might not be enough. During a recent meeting at the Senedd, they expressed concerns that even with the extra money, many councils will still need to raise council tax for residents. They shared their worries about the financial challenges ahead.
Each council will finalize its budget in February, and many are still discussing the potential tax increases with residents. The details will be updated as more information comes in.
For example, Bridgend is looking at a 4.5% increase due to various cost pressures. Caerphilly is considering a 7.9% hike, citing a £45 million budget gap over the next two years. Cardiff has a £23.4 million gap to fill and is also looking at raising taxes.
Carmarthenshire is eyeing a 9.75% increase, while Anglesey is considering a 9.5% rise. Newport is proposing a 6.7% increase, which has drawn criticism from local politicians. Meanwhile, Pembrokeshire hasn’t set a figure yet, but discussions are ongoing.
In short, it looks like many councils across Wales will be asking residents to dig a little deeper into their pockets next year. Keep an eye out for updates as the councils finalize their budgets!