Cardiff and Caerphilly councils to increase council tax

Bills will be going up by about 4% in Cardiff and Caerphilly

Council tax is to rise by about 4% this year in two council areas, local authorities have said.

Cardiff residents will see their bill rise in April, with the council facing a budget gap of £16.4m.

The rise is expected to generate £6m with the remainder of the shortfall being made up by "efficiency savings" the authority said.

Meanwhile, people in Caerphilly will see a rise of 3.9%, although there will be no extra cuts to public services.

Both councils said they received more money than expected under the Welsh local government settlement, which is money provided to local authorities by the Welsh Government.

Cardiff council bosses warned of a £25m shortfall in September, but a 3.8% rise in the Welsh local government settlement means an extra boost in funding for services, according to the Local Democracy Reporting Service.

Chris Lee, director of resources at Cardiff council, said: "While the improved funding position for 2021/22 is welcome, it should be noted that the position for 2022/23 and beyond is much less certain.

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"The UK economy will be transitioning to new arrangements post-Brexit and the 'long-tail' impact of Covid-19 is still likely to be felt during 2021/22."

Cardiff council is still likely to make staff redundant next year, although it is not yet clear how many jobs will go, Mr Lee added.

Caerphilly council faced a £14m shortfall ahead of the next financial year and has already approved £2m worth of cuts which will take effect in April.

The council tax increase will raise £3m, while the remaining £9m will be covered by the Welsh local government settlement.

However, the authority may need to make cuts of up to £20.4m between 2022 and 2026, the budget report warned.

A public consultation on Cardiff's budget will open on Wednesday, before councillors vote on it in March, while a council vote on Caerphilly's budget will take place in February.