Council tax in Pembrokeshire will increase by 5 percent a year for the next three years if proposals in the county council’s draft budget get the go ahead.

A report to Monday’s meeting of Pembrokeshire County Council’s cabinet predicts a £10.7m funding gap for 2017-18 for the authority and a longer term gap of £45.3m from 2017 to 2021.

“The draft budget has been developed against the backdrop of three years of significant reductions in financial settlements and significant workforce, pay, inflation and demographic pressures,” reads a report by director of finance, Jon Haswell.

In the next financial year the authority is proposing to save £6.6 million through service transformation, cost efficiencies reductions and to raise an extra £2.2 million through the council tax increase.

The 5% increase will mean that a band D property will pay £883 council tax next year, as opposed to £841 this year, an increase of £42 or 5 percent.

“The budget engagement and consultation process over recent years has highlighted increasing council tax as one of the most acceptable sources of increasing income, as the council continues to have the lowest council tax in Wales,” says Mr Haswell.

His report went on to say that the band D council tax for neighbouring Carmarthenshire and Ceredigion were both 33 percent higher than Pembrokeshire County Council.

A second home council tax premium of 50 percent will also be introduced in the next financial year.

The band D council tax for a second home will be charged at £1,324. This is calculated by taking the standard band D charge and adding another 50 percent.

It is anticipated that the new charge will generate £1,354,637 for the authority with at least half of that used for affordable housing and consideration given to using the remainder to support local services.