Ceredigion County Council

On 29/02/24, Ceredigion County Council set its budget for 2024-2025 at £193.572m which has resulted in a Council Tax increase of 11.1%.  This increase represents an increase of 10.0% for core Council Services and a further 1.1% in order to fund an increase in the Mid & West Wales Fire Authority levy for 2024/25. The increase for County Council purposes (including the Fire levy) means a Band D property in Ceredigion paying £1,726.05 – an increase of £172.45 (This is the equivalent of an extra an extra £3.32 per week).

The funding for operating the Mid & West Wales Fire Service falls to all constituent Local Authorities within the region, each bearing a proportionate share based on population.   The contribution required from Ceredigion County Council (known as the Fire levy) has risen from £4.856m in 2023/24 to £5.440m in 2024/25 (a 12.0% increase).   Unlike the cost of Policing which is a Precept and is shown separately on your Council Tax bill, the Fire Levy forms part of the Council’s £193.572m Budget.   Further information on the Fire Service can be found at www.mawwfire.gov.uk.

Welsh Government have openly stated that their 24/25 Budget is ‘the starkest and most painful since devolution’.   Following additional funding announced by WG on 07/02/24, Ceredigion is still only receiving a 2.8% core funding increase (14th out of 22 Local Authorities).   It is therefore also Ceredigion County Council’s starkest Budget yet and worse than forecast.

The Council also collects Council Tax for Dyfed-Powys Police (6.2% increase) and the Town and Community Councils (9.1% average increase).  Overall, the Council Tax bill for band D properties has increased by 10.25% (this equates to £3.76 per week extra for Band D households).

The Welsh Government sets a Standard Spending Assessment (SSA) for Councils each year.  Ceredigion County Council’s 2024/25 SSA is £186.4m.

A programme of capital investment totalling £59.1m is planned for 2024/25 (£87.2m for the multi-year capital programme period 2024/25 – 2026/27).

Budget Context

The financial challenges being faced by the Council are set against the backdrop of the wider national economic challenges being faced by the UK as a whole.

Cost pressures faced by the Council for 2024/25 total £18m, equivalent to a Ceredigion specific inflation factor of 10%.   This compares with general inflation running at 4% (January 2024 CPI figure).   A budget shortfall of £14m has therefore needed to be found from a combination of £7.3m Budget Savings and Council Tax considerations.

The areas where Cost pressures are being seen are generally not unique to Ceredigion.  They range from elevated (nationally set) Payawards to Contracts inflation to an increased Fire levy cost.  Demands on Social Care related budgets continue to increase significantly, this includes ensuring that registered Social Care workers in Ceredigion continue to be paid at least the Real Living Wage (which has risen from £10.90 to £12.00 per hour – a 10.1% increase).

Following the decision by Full Council on 14/12/23 to increase the Council Tax premiums chargeable on Second Homes and Long-term Empty Properties, there was a need to balance the desire to ring-fence all Council Tax premiums monies with the wider Budget position and the ability to reduce the Council Tax burden for all Ceredigion residents.   As a result the new Community Housing Scheme remains available to support residents in Ceredigion with a pathway to home ownership (more details can be found at Community Housing Scheme - Ceredigion County Council), this is funded from 25% of Council Tax Premium monies.   The remaining 75% of Council Tax Premium monies is assisting the general budget position in order to reduce what would have been a higher Council Tax burden on Ceredigion residents.

Council Tax

What does the County Council element of Council Tax pay for?

Council Tax is a universal tax based on property values and does not operate on a pay as you use Services basis.   Residents will see and access different Council services at different points in their lives:  

• At a young age this would start with the registration of a birth and move on to include being transported to and accessing Nursery, Primary and Secondary School education through to Post 16 education, be that 6th Form education or more Vocational training and accessing Music and Youth Services.
• As an adult this could include using a Sports centre, using a Library, walking the Ceredigion Coast path (and other public Rights of way), registering to vote in an Election, putting in a Planning or Building Regulations application, eating in safe and regulated Food establishments, going to the Council’s Museum or Theatre, having your Waste collected (and then disposed of or recycled), using a Household Waste site, driving on maintained Highways and Bridges (including roads being gritting during winter months), using a public Bus service, having Streetlights lit on your street and being able to call the Fire & Rescue Service for emergencies.
• In later years, a resident would benefit from Concessionary Fares on public transport, but ultimately may at some point need to access Care & Support services (using valued Social care staff who are paid at least the Real Living Wage in Wales). This could range from support and equipment to enable Independent living through to Domiciliary Home Care through to a placement in a Residential Care Home and ultimately the possible involvement of the Coroner’s Service and the registration of a death.

Budget Breakdown

What does each Service cost?

The Budgets for each Service are summarised in the table below:

Further information can be found in Appendix 3 of the Budget report considered by Full Council on 29/02/24 - Agenda for Council on Thursday 29th February, 2024.   The direct controllable cost of Council Services (excluding any re-allocation of Support Services or Capital charges such as Depreciation) for 2024/25 can be illustrated as:

75% of the Council’s budget will be spent on Schools & Lifelong Learning, Through Age Social Care & Wellbeing and Highways & Environmental Services.   After providing for other (largely) fixed costs (i.e. Members Allowances, Fire Authority Levy, Capital Financing Costs and the Council Tax Reduction Scheme), this only leaves 14% (£27.2m) for all other Council Services.

Adjustments made for:

*        Includes Out of County Placements (from LG), Legal Fees (from L&G) & Social Care Wales Workforce Development Programme (from P&O)
**      Includes Penweddig PFI (from F&P)

An additional special item is payable in respect of Town/Community Councils precepts as set out in the table below: