Councillors approve annual budget and precept

Town Councillors have tonight approved their annual budget and precept request, resulting in an increase of £19.78 per year for a Band D property in Newtown.

Town councillors met tonight to finalise their annual budget and precept request. This marks the end of months of work towards the annual budget for Newtown & Llanllwchaiarn Town Council.

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As we reported last week, councillors were set to approve an increase of £19.78 per year for a Band D property or around 11%. Tonight, councillors discussed the merits of their budget and the positive impact made on residents of Newtown.

During the debate, Cllr Pete Lewington said:

"At first sight, a percentage increase of 11% appears to be a lot but if we do focus on the monetary terms it's just a 38p a week increase for a Band D household."

"We should also bare in mind the impact of external factors such as inflation caused by the war in Ukraine"

"I believe that last year, as a council, we acted at the hight of the cost of living crisis, but utilising the general reserves to keep last years increase as low as possible"

"Personally, I could not see any service that we provide that I would wish to see cut"

Approved changes in terms of yearly charge per band per household - Newtown & Llanllwchaiarn Town Council only (excluding PCC and Police)

In the report to councillors, the Council's Finance Officer said:

"In general, there have been significant price increases in goods & services purchased by NLTC including increases to staff pay (which are agreed nationally between local government employers and unions and are therefore outside NLTC control) and changes to councillor allowances."

"The combination of increased costs and the large precept subsidy in 2023-24 has resulted in a disconnect between the services & projects the Council has resolved to carry out in the town and the level of precept raised. "

"In the opinion of the RFO, Council has now reached the point where it needs to either raise the required funds or cut projects and/or services. (Every £8,000 needed results in an increase of approximately 1% on top of the 2023-24 precept)."

The Town Council's reserves strategy aims for general reserves equal to 2 to 3 months' expenditure. However, by 31/03/24, the estimated reserves are likely to be around 1.8 months' expenditure.

Councillors also approved their annual budget of £910,903. The budget is made up of income of £14,901 and a precept of £896,002.