A PROPOSAL to increase council tax by four per cent in Blaenau Gwent as part of budget plans for the upcoming financial year will be considered by councillors.

Blaenau Gwent council has drawn up draft budget proposals for the new financial year, including plans for the new council tax level.

The planned four per cent rise would amount to paying an extra £0.87 per week for band A households and £1.02 per week for band B households.

A provisional settlement from Welsh Government will increase Blaenau Gwent’s budget by 3.6 per cent, providing the council with an extra £4.2 million in funding above initial budget estimates.

The proposed budget includes investments in education, with individual school budgets set to receive a 3.6 per cent increase.

Plans to invest in the creation of community hubs in the borough and to co-locate some council services are also included.

A council report says that after the council’s ‘bridging the gap’ savings are considered, the authority is forecast to have a budget surplus of £1.3 million for 2021/22.

It is proposed that this sum is transferred to the council’s earmarked reserves, to support financial planning.

The council’s reserves have increased by £1.3 million over the last five years after previously low levels were highlighted by public money watchdog Audit Wales.

Savings identified as part of ‘strategic business reviews’ amount to £755,000 in the budget.

This includes £490,000 saved on contracts with third party suppliers across all council services and £230,000 through an increase in council tax income from new housing developments.

Council leader Cllr Nigel Daniels said the proposals will see “no major service changes as we focus on our key priorities”.

“The proposed budget protects vital services and provides helps us plan for a sustainable future as we recover from the demands of dealing with Covid-19,” Cllr Daniels said.

“The role and work of local government staff in our communities has been vital this year and we have been able to maintain services valued by local residents as well as going the extra mile to protect our most vulnerable residents.

“I’m pleased the 2021/22 draft budget continues to demonstrate our commitment to improving services for all residents in Blaenau Gwent and building financial resilience for the demands of future years.”

The proposals will be considered at a special scrutiny meeting on February 23 before going to full council in March.