THE threat of a five per cent hike in council tax hanging over Conwy residents moved a step forward this week.

Conwy Borough Council's finance and resources overview and scrutiny committee agreed a recommendation to increase the tax to help make up for a £12 million reduction in Welsh Assembly funding.

It was also agreed to draw down £2.343 million from the authority's reserves to help cover the shortfall and to accept cuts of £6.168 million to the council's expenditure.

The committee's decision will have to be agreed by the cabinet and then finally approved by the full council, which meets on Thursday March 1, before it can come into effect.

Cllr Goronwy Edwards, the committee's chairman said: "It will be interesting to see how conservative members of the cabinet react because of their election promises not to raise council tax, and now they are faced with a five per cent increase.

The increase would mean a £55.63 annual increase for D band properties, raising the tax from £1112.69 to £1168.32.

Cllr Edwards, added: "The council has to find almost £12 million savings because of a reduced settlement from the Welsh Assembly. We are one of the four authorities in Wales with the lowest settlements.

"We have looked at taking money out of our reserves and increasing our income from raising car parking, crematorium, planning enforcement and planning control charges.

"Every one of our services has had to look at making economies. But the last thing we want to do is is to cut services. However this lack of funding from the Welsh Government makes it inevitable some services will suffer. Hence the recommendation to raise council tax by five per cent.

"When we ask the Welsh Assembly to increase our settlement, they say if you are not prepared to ask your council tax payers to pay more, then don't ask us to make up the shortfall.

"But we have tried to stick within the guideline of a maximum five per cent increase in council tax."

Janet Finch-Saunders, AM for Aberconwy and shadow secretary for local government, said: “Since devolution, council tax in Conwy has risen more than 187%, and there appears to be little respite on the cards. Rather than cutting services and increasing bills, the Council must look into streamlining areas of overly-bureaucratic management and administration procedures, and developing innovative ways to increase funding streams and income."

"But my ward is a rural ward, and different areas have different problems with this. Urban wards have problems with smells and so on."