Possible 13.5% council tax increase incoming

Powys County Council is grappling with a £13.5 million budget deficit for the 2025-26 financial year, meaning Council Tax may increase as much as 13.5% without cuts to services.

Despite a 3.2% increase in the Revenue Support Grant from the Welsh Government, the council says it is insufficient to cover mounting financial pressures.

Leader of Powys County Council, Cllr James Gibson-Watt, highlighted the stark challenges ahead: “While the provisional settlement from the Welsh Government has improved, it falls short of addressing the increasing demands on our services, inflation, and rising provider costs.”

Social care, schools, waste collection, and homelessness services are among the critical areas facing strain, compounded by national pay awards and rising service demands. Delivering a legally required balanced budget will necessitate tough decisions.

Cllr Gibson-Watt acknowledged the burden a potential tax hike would place on residents, who are already enduring financial difficulties. “We will only increase Council Tax to meet the essential costs of running services. However, we recognise the significant impact this could have and are working to protect vital public services wherever possible.”

The council also made it clear that increasing council tax alone will not be sufficient to close the funding gap. This signals that additional cost-cutting measures and potentially unpopular decisions are on the horizon.

With final decisions yet to be made, the prospect of a 13.5% council tax rise is likely to be a major point of concern for Powys residents as they await further details on how the council plans to address the financial shortfall.

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