'We still need to raise council tax despite better settlement than expected'

Denbighshire council's Ruthin headquarters
-Credit:Reach Publishing Services Limited


Denbighshire Council's cabinet members heard how council tax will be increased and savings made in the coming months. The council will be tasked with setting a balanced budget for 2025/26 in February for the new financial year beginning in April. Despite receiving an increase of 4.7% in its provisional local government settlement, the amount Welsh Government allocates to councils, Denbighshire says council tax will increase.

The percentage is above the Welsh average of a 4.3% rise, an increase of about £9.4m, taking the total sum to £215.2m. But with around £21.3m of budget pressures, the council says they need more money.

Budget pressures include increases in council staff pay, children’s services, schools, including teaching and non-teaching staff pay increases, adult social care costs, and others. Sign up for the North Wales Live newsletter sent twice daily to your inbox.

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Denbighshire’s head of finance Liz Thomas commented: “So the report summarises that, whilst the settlement is positive, it doesn’t cover all of our cost pressures, and balancing the budget next month will require some savings, and I use a catch-all term for savings. Savings can mean different things, and it will require an increase in the council tax.”

Leader Cllr Jason McLellan agreed. He said: “So the message is we’ve had a better settlement than expected, and that’s obviously good news, and there are still a lot of pressures that we’ve gone over in great detail, so there will still need to be savings, but not as severe as may have been the case, and in order for the council to deliver its statutory services, we will still need to be looking at a council tax increase.”

Cabinet members considered the report, but a decision is yet to be reached on council tax or the final budget for 2025/26. Cabinet will next meet on February 18 and consider a report to set a balanced budget and council tax for 2025/26. This report will then be considered by council at its meeting on 20 February.

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