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Residents in Caerphilly County Borough could be facing an almost 3% increase in the amount they pay towards funding South Wales Fire and Rescue service.

The fire service, which covers Caerphilly County Borough as well as nine other local authority areas across south Wales, is currently consulting on its budget proposals for 2026/2027.

Proposals for South Wales Fire and Rescue Service’s 2026/27 budget were agreed by its board of commissioners on Friday December 5. It will now consult with the public on an overall 2.99% increase in the budget.

The spending plans would see the amount that local councils contribute to the fire service’s budget increase from £101.35m in 2025/2026 to £104.38m in 2026/2027 – an increase of £3.03m.

If approved, Caerphilly’s contribution would rise by £341,728, from the current £11,461,254 – an increase of 2.98%.

Estimates used by the fire service’s board of commissioners shows a mid-year county population of 176,865 in 2024, compared with 176,437 in 2023. Bizarrely, because of the formula used to work out contributions, this would have seen Caerphilly’s funding of the service fall by 0.05%, if there was no proposed increase.

Last year, the fire service increased the amount of money it takes from taxpayers in the county borough by 4.63%.

The tax to fund the fire service is collected alongside residents’ council tax.

A report for the commissioners said that for every 1% cut from the proposed rise would require £1.043 million from reserves, which the service warns is already earmarked for other projects.

It says any use of reserves to reduce the fire levy further will require a commitment to developing a plan, which would be to address future budget levels and acknowledge any negative impacts on service delivery.

The report also highlights some of the financial risks in setting next year’s budget, which include the UK Government budget and its impact on the tax system; inflation; uncertainty of Welsh Government grant funding; the projected in-year overspend which will be met from reserves; and the need to set a sustainable budget beyond 2026/27.

Once updated population data and the 2.99% increase is added it would see the ten areas covered by the fire service contribute these amounts to next year’s budget:

• Cardiff’s contribution would increase from £24.91m to £25.51m, an increase of £741,784
• Newport’s would go up from £10.62m to £11.15m, a rise of £324,404
• Vale of Glamorgan would see its contribution rise from £8.75m to £9.02m, an increase of £262,274
• Rhondda Cynon Taf’s would increase from £15.66m to £16.13m, a rise of £469,208
• Monmouthshire’s would go up from £6.14m to £6.3m, a rise of £183,418
• Torfaen’s would increase from £6.06m to £6.25m, a rise of £181,851
• Blaenau Gwent would see its contribution jump from £4.37m to £4,51m, a rise of £131,140
• Bridgend’s would rise from £9.53m to £9.8m, a rise of £285,048
• Caerphilly’s would go up from £11.46m to £11.75m, a rise of £341,728
• Merthyr Tydfil’s would increase from £3.8m to £3.91m, a rise of £113,942