- The council tax base for Blaenau Gwent is set to see a slight increase for the 2026/2027 financial year.
- This increase provides more flexibility in the budget-setting process and could lead to higher revenue for the council.
- Key officials discussed the implications of the increase, including potential changes in how collections are managed due to new legislation.
The Rise in Council Tax Base: Implications for Blaenau Gwent Budget
In a recent meeting of Blaenau Gwent County Borough Council’s Labour council on Monday, November 24, senior councillors received an update on the council tax base for the upcoming financial year. This annual legal requirement is a crucial step in the budget-setting process, which traditionally concludes by late February or early March.
Technical Calculation and Current Status
The report indicated that after applying the formula, the council tax base will expand to 21,210.13 for the county borough from this year’s figure of 21,197.98. Council leader Cllr Steve Thomas (Labour – Tredegar) presented the report and emphasized its significance: “This is the technical calculation that underpins next year’s budget.”
Impact on Budget Planning
The slight increase in the council tax base could provide more financial leeway for the budget-setting process. Cllr Thomas stated, “A slightly higher council tax base gives us a bit more room in the budget setting process.” However, it’s important to note that this increase has not yet resulted in an agreed-upon budget or council tax level for next year.
Addressing the Cost-of-Living Crisis
The meeting also addressed the cost-of-living crisis and its impact on local residents. Cllr Helen Cunningham (Labour – Llanhilleth) brought up a section in the report that highlights measures available to assist those struggling with their council tax bills. Starting from April 1, 2026, the Welsh Government will amend Council Tax recovery legislation, providing households with 63 days to address missed payments before enforcement action can be taken.
Miss Cunningham asked if this new legislation had been considered by the council yet.
Director of Corporate Services and s151 officer Rhian Hayden provided a response: “The impact is yet to be determined. We are anticipating it will slightly elongate the recovery process for us. It will set specific timelines for when a debt is initially incurred and when we can send the first and second reminders.”
She added, “I would hope it doesn’t have a significant impact on us as we do try and support our residents as much as we can by giving them additional time to pay arrears – if they evidence need and vulnerability.” Miss Hayden will provide a briefing on this change in the run-up to the budget-setting process next year.
Approval of the Council Tax Base
The cabinet went ahead and approved the council tax base, setting the stage for further discussions and planning. Cllr Thomas concluded by saying, “It’s the right thing to be doing.” This approval marks a significant step in ensuring that Blaenau Gwent has the financial foundation needed to plan its budget for the coming year.
The council’s efforts to balance increased revenue with the needs of local residents during challenging economic times demonstrate the ongoing commitment to sustainable and effective governance. As these plans progress, stakeholders will be watching closely to see how they unfold in the months ahead.
