Councillors voted against reducing council tax at a meeting to approve final budget proposals for the coming year.
Neath Port Talbot County Borough Council (NPTCBC) voted against an amendment to the final budget proposal for 2022/23 that would have seen a 2.75 per cent decrease in council tax.
The proposed amendment, put forward by Plaid Cymru Group Leader Alun Llewelyn and supported by Independent Democrat councillors, would have seen the tax reduction come from the council's general reserve - amounting to £1.69 million.
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Following two tight votes, the opposition's amendment failed and the original proposal for a council tax freeze was approved.
In his opening statement at full council today, Cllr Llewelyn, said: "Since the creation of Neath Port Talbot in 1996 we have had one of the highest council taxes in Wales – currently the third highest.
"It is difficult to describe the frustration of our residents when they see this situation year after year while services declined, and especially now as we face a cost of living crisis.
"The recommendation is to freeze the council tax for one year.
"The Plaid Cymru group proposed last year to freeze the council tax, and the financial outcomes show that would have been affordable. We could have helped people over the last year.
"Because the government settlement is better this year we have an unique opportunity to begin to redress the balance by reducing the council tax not just for this year but for future years too.
"That could bring our council tax down to levels just that little bit closer to our neighbouring councils."
In a meeting yesterday, Cabinet members agreed to a proposal to set aside £2.3 million from the Council's underspend to develop Hardship Relief Scheme that would provide targeted support to those struggling to meet the increased cost of living.
Independent Democrat councillor at NPTCBC, Cllr Steve Hunt, supported Cllr Llewelyn's proposal, arguing that a reduction in council tax would better help those who would not qualify for a hardship fund.
No details have been agreed yet as to who would qualify for the Hardship Relief Scheme and how it would work.
The Head of Finance at NPTCBC, Huw Jones yesterday advised councillors not to vote in favour of a council tax reduction, saying it would not be "prudent or sustainable.
On top of the 8.8 per cent increase in funding from the Welsh Government compared to last year's settlement, Mr Jones added that the council was only able to propose a freeze in council tax because of its "healthy reserves".
He said it was his intention to avoid putting the council in a "compromising position".
A number of members denounced the amendment as unrealistic with one councillor, Doreen Jones, saying: "I can't possibly support the amendment.
"It is all pie in the sky."
She claimed the amendment was politically motivated.
In reference to the upcoming May local government elections, she added: "We are coming up to the funny season now."
Plaid Councillor, Nigel Hunt dismissed Cllr Jones's comments, saying the reduction in council tax would not mean a cut in services, but a cut from what he called the council's "excessive general reserve".
He said: "This is really not pie in the sky, but forward thinking. Tax payers [in Neath Port Talbot] should have parity with [those] in other authorities."
Council Leader, Ted Latham, said: "There seems to be a little bit of confusion around exactly who will benefit from the proposal that Cllr Llewelyn has put forward.
"It is either benefiting everyone, or it is just benefiting the full tax payers of Neat Port Talbot.
"If [this] is a medium to long proposal, the cost of [it] is going to be £8.34 million over the next five years.
"Can I just ask the question of where is that money coming from?
"I am afraid as far as I am concerned [the proposal] is riddled with confusion."
Summing up her thoughts on the amendment, Cabinet Member for Finance Cllr Carol Clement-Williams said she thought the opposition should go and "make a film" on how they would carry out their proposal and "call it Mission Impossible".
She said: "[The Head of Finance] has said that [the proposal] can be a one off, but to gain that back next year [and] get back to the position that we are in now would mean we would have to raise council tax by 2.75 per cent, plus whatever else we may need in the budget going forward for years to come.
"Is it prudent? Is it sustainable? No, it is not.
"10,000 of our most vulnerable, lowest paid residents get a 100 per cent reduction under the CTRS (Council Tax Reduction Scheme) and another 7,000 get 50 per cent.
"If we lower council tax, these people will not see any benefit at all. These are the people that are deciding whether they heat or eat."
According to Welsh Government statistics, Neath Port Talbot is in the upper echelons of average band D council tax charged in Wales.
Of the 22 local authorities, NPTCBC has the second highest average band D council tax level at £1,996.
However, a number of councillors pointed out that the majority of residents live in band B properties.
A team will now be set up to develop the Hardship Relief Scheme before it is brought back to Cabinet for formal approval.
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