Pembrokeshire’s council tax remains the lowest in Wales following a 3.4% rise in 2010/2011.

The Band D tax has been set at £687.96 – around £240 less than the Welsh average, and £500 a year less than the most expensive.

Pembrokeshire County Council leader, Cllr John Davies, said: “What this gives Pembrokeshire is very simple. It gives us certainty of services in uncertain times.”

“We are maintaining services, improving and developing services where there is a need, and lowering costs. We have done this endlessly, and will continue to do it.”

He said the council, had in the words of Appointed Auditor Ceri Stradling, ‘adequate’ reserves, and that ‘everything else’ was being invested further.

“Most of it is capital investment,” he said. “We continue to commit to building new schools, whether in Letterston, Neyland or Fishguard; they are all on the cards for this year.”

He added: “Any increase in council tax is unpalatable. This year is no exception, especially against the current financial backdrop - people in this county are facing financial hardships.

“We appreciate that many people are struggling with their finances at the present time, and we are doing our level best to help them.

“We have the problems that money is tight at a time when there is ever-growing demand on the Council’s services. We are committed to keeping costs as low as possible at the same time as maintaining the high quality of services that our customers deserve.”