Three per cent bid for council tax

Feb 28 2008 by Jackie Bow, South Wales Echo

COUNCIL taxpayers in Merthyr Tydfil are likely to see one of the lowest rises across South Wales.

A 2.9 per cent increase from April – 0.6 per cent lower than last year – is being recommended to the council next week.

Most of Merthyr’s homes are in Band A and B.

Taxpayers in Band A would see their bill go up by £22.59 from £778. 91 to £801.50.

Band B tax bills would rise by £26.35 from £908.73 to £935.08, band C from £1,038.55 to £1,068.66 and the bill for Band D homes goes up from £1,168.37 to £1,202.25.

Householders in Bedlinog will pay extra to fund their community council.

The council had set itself a 3.5 per cent tax increase benchmark for its budget but faced a £405,470 shortfall.

Further funding was identified and budget adjustments made which led to a surplus.

With a further £410,000 received from the National Assembly in the Local Authority Business Growth Incentive Scheme, the total surplus amounted to £588,710.

At yesterday’s meeting of the cabinet, chairman and council leader Harvey Jones recommended that almost £119,000 of that should be used to bring the council tax down to 2.9 per cent and described breaking the three per cent barrier “as uncharted territory”.

He said the remainder of the surplus cash would be set aside to deal with budgetary pressures and fulfil commitments in the next financial year.

He said this year they had been faced with “mega” problems as a result of the revenue support from the Assembly.

But instead of moaning, directors and portfolio members went away and found solutions, he said, stressing: “We have not cut any front-line services, they will continue to improve. If it’s agreed, Merthyr’s 2.9 per cent rise is probably the lowest of all the Heads of the Valleys group of authorities and probably one of the lowest in South Wales.”

The opposition leader, Independent councillor Jeff Edwards, said it was pleasing to see council tax would be increased at the rate of inflation and believed it would be accepted by the people.

People Before Politics leader Steve Morgan described it as “quite a brave proposal” in light of the raft of financial commitments the council faced.

“Also, it sends a clear message to the Assembly Government that although we are the smallest council in Wales, it is an example of considerable efficiency in money management.”

jackie.bow@mediawales.co.uk