Council tax in Pembrokeshire could rise by nearly 17% this year, adding more than £250 to the annual bill, in a series of proposals to be considered by senior councillors next week.

Pembrokeshire County Council’s Cabinet, meeting on February 10, is recommended to support one of four options for the council tax element of the forthcoming 2025-26 budget.

The proposed rises, and the increase for the average Band D property are.

The fourth option, proposed by the council’s Liberal Democrat group members, would see, amongst other changes to the three outlined above, a 12 per cent increase (£181.29).

For many years Pembrokeshire has had the lowest Band D Council Tax in Wales.

Following the 12.5 per cent increase in 2024-25 Pembrokeshire moved to the fourth lowest in Wales with a base Band D Council Tax of £1,510.72 per year, before town and community council and police precepts are added.

A report for members ahead of the Cabinet meeting says the council’s projected funding gap for 2025-26 has been reduced from £34.1m to £27.4m after a better-than-expected Welsh Government local government settlement but says: “Based on the current projected funding gap of £27.4m, it is evident that major budget savings as well as a significant council tax increase will be required in order to deliver a balanced budget for 2025-26. The lower the Band D council tax increase, the higher the budget savings requirement will be, with the consequential adverse impact on the provision of council services.”

The report lists 171 potential council savings to help balance the budget, ranging from green (achievable with impact) to red (very challenging with significant impact ) and deep red (statutory failings and/or very significant impact), saying: “The cumulative total of the Green to Deep Red savings (171 measures) is £23.9m. Implementation of all these budget savings options will be challenging, with some considered to be particularly unpalatable to council and the public.”

Of the total savings listed, they are categorised as red from 105 onwards and deep red from 146.

Of the three main council tax increase proposals, a 9.85 per cent rate would need savings up to 132, well into the red, 11.14 per cent up to 128, and even the 16.58 per cent rate going into the red savings at 108.

On the potential use of reserves, the report says: “The current analysis of reserves indicates that the absolute maximum of uncommitted reserves that council might consider using in exceptional circumstances is up to £1.3m but this remains subject to the Section 151 Officer’s continuing assessment.”

The S151 officer, in the report has said: “Unless there is a clear plan to replenish, any utilisation of reserves to balance the budget would only be a sticking plaster and will add to the projected funding gap for the following year.”

The final decision on the council budget will be made by all members of the council, meeting next month, with next week’s Cabinet choice forming a recommendation.

For this coming year, the Dyfed-Powys Police precept part of the overall council tax bill is rising by 8.6 per cent, bringing the rate for a Band D property to £360.68.

Neighbouring authority Ceredigion is proposing an increase of just under 10 per cent but an alternative proposal around the six per cent mark is being mooted.