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Caerphilly County Borough Council’s 2021/22 budget plans have been approved.

The plans, which were backed by councillors on Wednesday (February 24), include a 3.9% rise in council tax – but no new cuts to services.

The increase in council tax means an extra 89p a week on a band D property, or 59p on a band A house.

The council tax rise will contribute £3m to a £14.1m budget shortfall, with previously approved cuts making up £2m and the Welsh Government settlement the remaining £9m.

Councillor Philippa Marsden, leader of the council, said: “I am proud of the way this authority continues to manage its budget thanks to our ongoing sound financial management and prudent approach.

“We are working hard to ensure that the council remains financially resilient during these uncertain times and I would like to thank all those involved for making this possible.”

Cllr Marsden added: “I’m sure residents across the county borough will welcome the news that there will be no new cuts. This means we can continue to protect our key services for the future.”

Cllr Eluned Stenner, cabinet member for finance, said: “We have been required to make a range of significant cuts and reductions to services over recent years, so it is pleasing that we are in a position to protect our key services for the next 12 months.

“I appreciate that none of us want to see an increase in council tax, but the reality is that without this modest increase, we would need to consider unpalatable and unpopular cuts to services.

“It is important to note that this proposed increase is likely to be lower than many other councils across Wales. It is clear that we are doing our best to protect residents, as we recognise that our communities are also experiencing difficult times at the moment.”

However, Plaid Cymru group leader, Cllr Colin Mann, criticised the plans.

Last week, Cllr Mann proposed the council tax increase be lowered from 3.9% to 2.4%.

In a statement to the council, Cllr Mann said: “The Plaid group recognises the good parts of the budget proposals.  We welcome the fact that there will be no service cuts.  This has been largely helped, of course, by the £9m support from the Welsh Government when nothing was originally expected.

“What does concern us, however, is that this budget could have been delivered at a lower cost to the council tax payers of the county borough.”

He added: “For many people the council tax bill is the biggest monthly outlay they face, for others, second only to the mortgage payment.  

“What justification is there that this council can ask our residents to find nearly 4% extra when inflation and wage rises are minimal?”

Independent councillor Kevin Etheridge said: “The independents put down a motion for zero council tax raises this year – which was rejected – because of the current situation in regards the pandemic, unemployment, foodbanks and people on the breadline and in debt.”

‘Scope to save £849,000’

Cllr Mann suggested there was “scope within the budget to save £849,000, which would mean reducing the proposed rise by 1.5%”.

He said: “If the will is there from Labour, it can be done. In my view, Labour has set aside at least £500,000 too much for a possible pay increase for teachers and £150,000 more than is probably needed for a clerical and administration rise.”

However, the Caerphilly branch of the public services trade union UNISON, issued a statement saying it was “deeply concerned by the suggestion to reduce the budget set aside for staff pay award”.

It said: “Any political party who advocates taking even one penny out of the back pockets of our dedicated local government workforce should take a long hard look at itself.”

But Cllr Mann hit back, saying: “What I said in the council meeting – which is on public record – was that finance officers had included more than was necessary based on the proposed pay rise they were budgeting for. If a higher pay increase is later agreed there is money in the budget to cover that.

“The council normally aims to keep £10m in its general fund balance to cover any unforeseen issues, but it is keeping almost £1.25m more than that which could be used to cover pay increases.”

UNISON has said it will be “actively campaigning for much much more than the 1% that has been set aside by Caerphilly County Borough Council” for staff pay award.