Council chiefs have been asked about savings planned in Carmarthenshire, such as reducing flood defence work and changes to library services, ahead of a key meeting.

The council is due to receive an extra £25.1 million from the Welsh Government in 2025-26, but like all local authorities it faces significant pressure on staff pay and demand for social care among other things. It is also preparing for higher employer national insurance costs from April than currently.

The Plaid Cymru-Independent cabinet is planning to make £8.6 million of savings, although some of the measures will be increases to fees and charges rather than cuts, to help offset these pressures. It also proposes raising council tax by 9.75% – with each 1% equating roughly to an extra £1 million in revenue.

At a meeting of the communities, homes and regeneration scrutiny committee on January 20, Cllr Martyn Palfreman noted that £1.4 million of previous savings had not been achieved and asked what assurances could be given this wouldn’t happen again.

Cllr Palfreman also said he was concerned about a proposed £40,000 trim to the council’s flood defence budget next year given the impact of climate change. He added that a three-year plan to reduce library staff and premises costs by £310,000 by rolling out a mixed staff and digital-only book loaning service could disadvantage people without online access.

The council’s head of financial services, Randal Hemingway, said savings of around £10 million per year had been achieved over the past 14 or 15 years and that it was “probably inevitable that within the multitude there will be some that will be undeliverable”.

Cllr Terry Davies asked if the council was holding sufficient money in general reserves given the volatile financial backdrop. Cllr Alun Lenny, cabinet member for resources, said at £14 million – or 2.9% of the budget – general reserves were just below the recommended limit but that an additional £2 million was being provided as a buffer.

The meeting also heard about the new council-led Pentre Awel health and well-being complex in Llanelli, phase one of which will include a leisure centre and swimming pool and open in the spring. Cllr Sean Rees said “there was a lot of positive feedback” about it at a public event last week but that some people wanted a leisure centre sauna and steam room to be included.

Ian Jones, head of leisure, said a steam room had been considered by the council. He said a new hotel proposed on nearby land which is part of the overall Pentre Awel project might provide this sort of facility. “We’ve got to weigh up what is provided and planned,” said Mr Jones. He added that a group had been formed to explore how the land surrounding Pentre Awel could be used for recreation, fitness work and outdoor classes.

Mr Jones also said a 24/7 gym planned by the council at the former Debenhams store in Carmarthen would help meet unmet demand in the area.

Cllr Lenny said the council faced £55 million of spending pressures in 2025-26 and that the proposed 9.75% council tax rise was far higher than he would like. He added that it was unlikely the council would know for sure how much of its extra national insurance costs would be reimbursed by the Welsh Government before June 2025.

On a brighter note Cllr Lenny said the council’s energy costs had come down, and that its Welsh Government housing support grant was rising by £1.1 million. Cllr Lenny added that more revenue was expected from April when council tax premiums on long-term empty homes and second homes increased.

A public consultation about the budget plans continues prior to a further report before brought to cabinet in February. No final decisions have been made.

Councillors will set the budget at a meeting on February 26.