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With the cost-of-living crisis putting increasing pressure on residents, should councils commit to a council tax increase freeze for the next financial year?
Around a quarter of a local authority’s income is derived from council tax – with most of the rest coming from the Welsh Government.
With reports of councils already struggling to balance the books – and fears of even more cuts coming down the line from Westminster – is it realistic for councils to consider freezing council tax?
Caerphilly County Borough Council has said there is a “storm brewing throughout the country like no other”, but Plaid Cymru has called on the council to freeze tax in the 2023/24 budget.
Plaid Cymru has consistently criticised the £180 million the council has in its reserves and during this year’s council elections, the party called for a council tax freeze.
Leader of the opposition, Cllr Lindsay Whittle, said an increase in council tax from April 2023 would be a “kick in the teeth” for residents who are facing financial pressures.
Cllr Whittle, who represents Penyrheol, added: “There surely can be no justification in the current climate for increasing the tax burden on hard-pressed residents of Caerphilly. People are suffering because of higher food, energy and mortgage costs and many are now having to turn to foodbanks to feed their families.
“Labour councillors have a long record of hiking council tax way above inflation but surely if ever there was a year not to push up bills then it is 2023.
“They have the funding available if they want to tap into it. The council has hugely underspent on its budget while hoarding useable reserves of £180 million at the latest count.”
Caerphilly Council leader Sean Morgan has previously said the reason the council is “financially stable” is because it hasn’t listened to the opposition.
When asked if the council would consider a freeze, Cllr Eluned Stenner, cabinet member for finance and performance, said: “It’s too far in advance to say. We will get the provisional settlement from Welsh Government in December and until we know how much money we are getting, we don’t know.
“What our residents are going through and their wellbeing is at the forefront of our minds.”
A report on the council’s reserves is expected to be brought to the policy and resources scrutiny committee at an upcoming meeting.
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