Council tax will increase by 3.45 per cent in Carmarthenshire, which is below the average Welsh council tax increases.

It places the county 14th out of 22nd in the Wales ‘tax increase league table.’

Cllr David Jenkins, executive board member for finance said that the council had listened to the voice of the people in the budget consultation process.

“Thanks to the hard work done, we’ve managed to bring the previously anticipated tax raise of almost 5 per cent down to less than 3.5 per cent, while at the same time maintaining council services. This is a responsible and sustainable budget in unprecedented difficult times.”

Council Tax contributes around 26 per cent to the county council’s £386million net revenue budget which is spent on providing services to residents and businesses in Carmarthenshire.

The biggest share of council tax contributions is spent on education and children’s services, followed by housing and adult social care.

The budget passed by council also provides a further £133million investment in capital projects which will include regeneration schemes, redevelopment of schools, highway and leisure facility improvements and provision of affordable housing to improve Carmarthenshire.

Covid-19 has had a significant impact on the council’s budget - around £20million in extra costs have been incurred over the last year, around £10million of income has been lost, and Council Tax collection is currently around £2million lower than expected.

Further contingency planning has been accounted for to ensure critical services can still be delivered whilst the pandemic continues to affect the county.

Labour's proposals to reduce the council tax further were rejected by the council at its full meeting on Wednesday, March 3.

Cllr Rob James, Carmarthenshire Labour leader said: “Having spent months challenging Plaid Cymru’s inflation-busting council tax increase, which would have resulted in average households in some communities seeing a £100 a year tax increase, we are pleased that the council tax increase has been cut by 30 per cent as a result of our campaigning.

“Having said that, our fully costed, legal alternative budget sought to reduce the council tax further and removed cuts to social services and coroners services. It is economically illiterate for Plaid Cymru Councillors to cut social care during a pandemic, whilst creating a new reserve for social care.

"Plaid Cymru and Independent Councillors are choosing to hammer taxpayers during a crisis, increase rental costs for hard-pressed families and failing in their duty to protect frontline services. Carmarthenshire deserves better and it is clear after today that we need change from Plaid-managed decline.”

Cllr John Prosser, Labour's opposition spokesperson for finance, said: “It is extremely disappointing to witness Plaid Cymru and Independent Councillors voting against our attempts to ease the burden on Carmarthenshire taxpayers.

“People are struggling right now with so many people having lost their jobs, on being placed on furlough, as a result of the pandemic. It is not like people will get a tax refund if the authority do not use the contingent funds, as they predict.

“Collecting more taxes for a rainy day is the wrong decision when it’s pouring already. People are struggling now, we compound that issue."

Plaid said Labour's proposal raided a contingency fund to deal with possible unforeseen Covid-related expenditure in front line services like education and social care and would not be prudent.

Cllr Darren Price said: “Both in actually level of council tax and the percentage increase, Carmarthenshire is below the Welsh average.

"In the local context, we are below Labour-controlled councils like Swansea and Neath Port Talbot. People in Amman Valley villages like Garnant and Glanaman in Carmarthenshire pay significantly less council tax than residents of Gwaun cae Gurwen at the top end of the valley in Neath Port Talbot.

"Carmarthenshire residents in Band D will pay £1,724 a year, compared with £2,008 paid by those in the same band in Gwaun cae Gurwen and the rest of Labour controlled Neath Port Talbot – an extra £284."

Plaid Cllr Carl Harris pointed out that if Welsh Government chose to use unspent sums they have in hand, there’d be no need for any tax rise.

“Let’s be crystal clear. The Labour Welsh Government could freeze the council tax for every single resident in Carmarthenshire today at the stroke of a pen. They refused to do that when asked by Plaid Cymru,” he said.

The annual budget was passed with a majority.