CAERPHILLY council's cabinet unanimously approved draft saving proposals yesterday (wed) which include a council tax increase to 3.9 per cent for 2015/16.

The council faces a 3.4 per cent reduction in its financial settlement next year following the recent announcement of cuts by the Welsh Government. It will need to make savings of £12.8 million in 2015/16.

The cabinet approved the report which assumes a further reduction in funding of 3.4 per cent for each of the following two years with a cumulative savings target of £39million by 2018.

Cabinet members agreed to increase the Council Tax band for 2015/2016 which results in a weekly increase of 48p for Band A properties and 71p for Band D properties.

Further savings which will have a part impact in 2015/16 will be made by using new technology to achieve efficiencies in street lighting with £100,000 saved in 2015/16 and £350,000 for 2016/17. The report also proposes saving £100,000 in the reduction of street cleansing in 2015/2016 and a saving of £200,000 the year after.

Cllr Keith Reynolds, council leader, said: "First of all I must stress that there will be further consultations over the next three months with the scrutiny committee and with the public. It is our intention to protect front line services as long as we can.

"We are not looking at cutting services such as our libraries and leisure centres as other local authorities are doing. Is it our intention to reduce yes, to redesign rather than suspended services where we possibly can."

He also said compulsory redundancies for council staff members would be an absolute last resort. The saving proposals will be subject to further consultation before being presented to the cabinet in January 2015 and will go before the council in February 2015.