Pembrokeshire County Council’s Cabinet is recommending an increase of 77p a week in council tax for the coming financial year.

The increase will result in a Band D payment of £841.10.

Despite the five per cent increase, Pembrokeshire will still have the lowest council tax in Wales.

The increase was approved at a meeting of cabinet on Monday morning which considered the county council’s draft budget for 2016/17.

The medium term financial plan will also see a funding gap of £16.3 million, although schools and social care budgets will be protected.

The budget has been developed against the backdrop of the three most difficult financial settlements from the Welsh Government since the council’s inception in 1996, said chief finance officer Jon Haswell in his report to cabinet.

He said: “The forward planning assumptions in the Medium Term Financial Plan 2015-16 to 2017-18 approved by council on March 5, 2015, have been overtaken by a significant increase in anticipated pay, price and demographic pressures, combined with unfunded additional burdens, e.g. the Welsh language standards.

“This has been partially offset by a better than anticipated settlement for 2016-17, albeit still a significant reduction on the settlement for 2015-16.”

Clr. Jamie Adams, leader of Pembrokeshire County Council, said that although any rise in council tax was unwelcome, the recent budget engagement and consultation process highlighted increasing council tax as one of the most acceptable sources of increasing income.

The increase still has to be ratified by full council in March.