Powys council tax payers are facing a likely rise of 2.99 per cent this year with the potential for a 12 per cent increase by 2011.
Despite the increase, Powys County Council will have to make savings of over £3 million this year and £13 million over the next three years.
The rise, which has been recommended by the county council’s Board, would mean council tax for an average Band D property rising to £852.92 without Dyfed Powys Police and town and community council precepts.
This means an increase of £24.76 on the county council’s share of the precept last year, which was £828.16.
The council’s ruling board approved the recommendation on Tuesday, but full council will make the final decision on January 29.
The council’s portfolio holder for finance, Councillor Gwilym Vaughan, said the council had received another poor settlement from the Assembly, a ‘floor’ of 1.5 per cent, the lowest settlement for the third year running, compared with an average of 2.9 per cent and the highest of 4.2 per cent.
But he said without the ‘floor’ they would probably have received no increase in funding at all.
He said they had tried to get a balance between keeping council tax increase at a reasonable level and securing funding for the future, because it would be needed for the base budget next year.
He recommended the board increase council tax by 3.99 per cent, but after a joint amendment by the Montgomeryshire Independent Group, Liberal Democrats and Labour member Councillor Gwyn Gwillim, members rejected it in favour of a 2.99 per cent increase, saving taxpayers 16p per week.
To do so, members “assumed” that inflation will drop to 2.5 per cent and wages for non-teachers will increase by 1.5 per cent. The council’s head of finance, Geoff Petty, had advised they assume inflation would fall to 2.7 per cent
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