CEREDIGION county council’s overview and scrutiny coordinating committee discussed the draft budget at its meeting on Thursday February 10 before it is sent to individual scrutiny committees for closer examination.

Council leader Cllr Ellen ap Gwynn said that the Welsh Government settlement the authority was to receive was better than expected “an estimated funding gap of £3million” was identified with financial pressures from inflation, increased costs, demands and salaries and the requirement to make £15million of savings by March 2025.

The total revenue settlement, known as the Aggregate External Finance (AEF) allocated to Ceredigion for 2022/23 is £119.419milllion, an increase of 8.6 per cent.

Cost pressures of all services total £13.1million a report to committee states and the overall budget is estimated to be around £166million including AEF and council tax funding.

When it comes to council tax Cllr Ap Gwynn said:

“I know some of use would like to see it remain as it is but that’s not possible, we would have to make too many savings, we have to increase council tax in order to have a balanced budget.”

The committee heard that a 6 per cent increased would be “ideal” but the draft budget has been based on a 4.75 per cent increase – £67.10 a year on a Band D property raising £2.1million – while a 5 per cent rise would “cover cost pressures.”

Closer examination of the budgets of specific services will be held next week before a final council decision on any council tax rises.