Council tax in Pembrokeshire is expected to rise by nearly 10% this year, taking the average annual bill to well over £2,000.

Pembrokeshire County Council’s Cabinet, meeting on February 10, was 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 were: 9.85% (£148.81), 11.14% (£168.29), and 16.58% (£250.48), with a fourth option put forward by the council’s Liberal Democrat group members for a 12% increase (£181.29).

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

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

A report for members at Cabinet meeting, presented by Cabinet member for finance Cllr Joshua Beynon, said 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 said: “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 has said a potential use of in exception circumstances of up to £1.3m could be considered, but the council’s Section 151 Officer has warned: “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.”

Members backed a long list of budget proposals moved by Cllr Beynon including the 9.85% council tax rate, and that any improvement in central funding be used to reduce efficiency savings pressures on education in the first instance.

Council leader Cllr Jon Harvey said: “This budget, given the financial constraints, it really is the bare minimum council tax increase; it’s not just about numbers on a page, it’s about not losing vital services.

“Setting a balanced budget will allow us to navigate the difficult challenges, putting the authority on the path to long-term sustainability.”

The final decision on the council budget will be debated by all members of the council at a special meeting on February 20.

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.

That means, if the 9.85% rate is backed, the average Band D council tax bill, before individual town or community council precepts are added, would be £2,020.21.

Neighbouring authority Ceredigion is proposing an increase of just under 10%.