INCREASING council tax is an important part of “balancing our budget”, the leader of Caerphilly county borough council has said.

Caerphilly’s cabinet agreed to move onto the consultation stage for the proposed 2021/2022 budget, which includes a council tax increase of 3.9 per cent.

The leader of the council, Cllr Philippa Marsden said that this would lead to an 89p increase per week for properties in council tax band D.

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She said: “While none of us wants to see an increase in council tax it’s an important part of balancing our budget.”

Caerphilly’s council tax, measured by the cost in band D, is currently the second lowest in Wales behind Pembrokeshire, and the lowest in Gwent.

The cabinet member for finance Cllr Eluned Stenner said that there has been “some concerns” about the 3.9 per cent increase in council tax.

She said: “For some families this is a worrying amount.

“The most vulnerable families in Caerphilly will be protected by the council tax reduction scheme.”

The council tax reduction scheme provides households on low income with a discount on council tax.

Cllr Stenner said there were currently 16,800 households receiving support from the reduction scheme, with many benefiting from a 100 per cent reduction in payments.

Residents will now have a chance to have their say on the council tax proposals in a formal consultation.