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Labour and Plaid Cymru councillors in Caerphilly are at odds over how best to use unspent money in the local authority’s reserves.

Caerphilly County Borough Council has proposed a 7.9% council tax rise, a series of cuts and savings measures, and the use of some of its reserves to balance this year’s budget.

It estimates it will need to find around £47 million of savings by March 2028.

Plaid councillors have accused the authority of sitting on millions of pounds of reserves set aside “for a rainy day” but never spent.

The ruling Labour group, however, has warned nearly all of the £189 million held in various reserve accounts had been pledged to specific future projects – which could be at risk if the money is spent elsewhere.

Members of the council’s joint scrutiny committee met on Thursday January 23 to discuss the council’s 2025/26 budget proposals.

The meeting began with council leader Cllr Sean Morgan, of Labour, in a war of words with the head of the Plaid group, Cllr Lindsay Whittle, over the authority’s spending and financial management.

Cllr Morgan said it was “too easy, too populist” to simply oppose the council’s savings plan, and warned critics they could be left “looking like an ostrich whose head was firmly in the sand of denialism”.

But Cllr Whittle said it was the opposition’s “duty” to reject measures it deemed unsuitable, and condemned the council’s handling of empty properties, spending on consultants, and its agile working policy.

Cllr Morgan said Plaid was entitled to come up with an alternative budget, but had not done so, and talked up the benefits of agile working by pointing out other Plaid councillors had joined the meeting remotely.

Their to-and-fro was then cut short by the committee chairman, Cllr Gary Johnston, who said the purpose of the meeting was for other councillors to put forward opinions on the budget – not to listen to the party group leaders argue.

Plaid councillor Gary Enright was one of several from his party who challenged the council’s use of reserves, telling officers accounts from the past three years showed some balances never seemed to change.

“I’m not saying spend all the reserves, but we need to take a root and branch look at this,” he said.

Plaid colleague, Cllr Colin Mann, asked why the council insisted on maintaining its General Fund reserves at a rate of 3% of its budget.

Stephen Harris, head of finance, said this was a “typical” rate for local authorities, and warned that 3% – around £14 million – would only “run this council for 13 days”.

Meanwhile, independent councillor Kevin Etheridge said he opposed council plans to axe the Community Safety Warden scheme and nine school crossing patrols.

Cllr Nigel Dix, also independent, urged the council to speed up its work on empty homes to address a growing and ever-costlier demand on temporary accommodation.

Plaid councillor Haydn Pritchard challenged the proposed 75% increase in sports pitch fees, and was told the increase was so high because a lower rise in last year’s budget had ultimately been rejected by councillors.

Cllr Judith Pritchard, also of Plaid, urged the council to abandon plans to charge £55 for dealing with residents’ rat problems.

Rob Hartshorn, the head of public protection, said Caerphilly was one of only two councils in Wales still providing a free service.

He said council tenants would not be charged, and residents on benefits could be eligible for discounts.

Cllr Carl Cuss, of Labour, said the council should introduce a fee in line with other councils in Wales.

He also questioned a proposal to take a gully-cleaning vehicle out of regular service.

Mark Williams, the corporate director for environment, said two other vehicles would remain in operation, with the third held back in reserve.

A majority of councillors voted to back the further use of reserves in this year’s budget plans.

Residents can have their say on next year’s budget proposals by visiting the council’s website before February 12.