BLAENAU Gwent council needs to develop "a stronger financial culture" going into the future, a Wales Audit Office (WAO) review has found.

Seven proposals for improvement have been put forward by the WAO in a review of the council's financial resilience.

Among these, the watchdog recommends the local authority reviews its administration of council tax "to ensure prompt and efficient collection."

Blaenau Gwent has the highest council tax staff costs of all Welsh councils, but its rate of council tax collection is among the lowest.

The authority's rate of using direct debit payments to collect council tax is also among the lowest in the country.

If the council improved its collection rates it could generate up to £1.2million increased income from council tax, according to the WAO review.

Council tax rates for band A properties are the highest in Wales, with households paying £319 per year more than those in Pembrokeshire, which has the lowest rate.

The authority has agreed to increase council tax by 4.9 per cent in April, equating to a rise of £1 a week increase for a band A and a £1.15p a week increase for band B households.

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Staffing costs for council tax are also around 60 per cent more expensive than the average in Wales.

Improvements to the council's "culture of planning savings" are also suggested in the review, which will be discussed by councillors at a meeting next week.

The report says the council " does not always have capacity to deliver the large numbers of savings it approves."

It also highlights that the authority "does not always have clear plans to address unexplained budget pressures", such as a £400,000 overspend in one department.

The council's approach to setting fees and charges "lacks clear strategic direction", the review found.

The report highlights "insufficient and potentially misleading information" in setting fees and charges, calling the council's approach "narrow and traditional."

More effective use of data could also be made by the council, the review found, saying the authority "lacks a culture that consistently uses data constructively to proactively challenge, learn and drive improvement."

However the authority does have "a clear financial plan" for this financial year, though it faces "significant challenges" to deliver it, the review says.

Council reserves, at five per cent, meet minimum requirements.

In its conclusion, the review says: "The council has an agreed medium term financial strategy and reserves of five per cent but will need to develop a stronger financial culture if it is to remain financially resilient."

Council leader, Cllr Nigel Daniels, said: "We accept the findings of the Wales Audit Office and confirm that work is already underway to address the opportunities highlighted in the review to further improve the council’s financial resilience.

"In response to the Wales Audit Report the council has developed a robust action plan lead by senior officers with clear deadlines."

The plan includes a review of council tax administration, reviewing the management of grants and fees and charges policy.