Powys rank 21 out of 22 for funding rise next year

Powys County Council has been ranked 21 out of 22 local authorities in Wales for the percentage increase in its funding settlement for the 2025-26 financial year.

The Welsh Government announced a £6.1 billion allocation to local authorities, marking an overall 4.3% increase in core revenue funding.

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However, Powys will see a below-average rise of 3.2%, receiving an additional £7.77 million compared to this year.

'Protecting core frontline public services'

While no local authority will see an increase of less than 2.8%, Powys' position near the bottom of the table has raised concerns about its ability to maintain and improve services.

Only Monmouthshire fared worse, with a 2.8% increase. In comparison, Newport, at the top of the table, is set to receive a 5.6% increase.

The Cabinet Secretary for Housing and Local Government, Jayne Bryant, defended the overall funding approach, stating: “This settlement reflects our ongoing commitment to protecting core frontline public services as far as possible, supporting the hardest-hit households and prioritising jobs.”

Despite this, Powys faces ongoing challenges, including its large rural geography and aging population, which place unique pressures on its budget.

The Council will need to balance these realities against the limited growth in its funding allocation.

Commenting on the provisional 2024-25 Local Government Settlement, Montgomeryshire MS Russell George said:

“Yet again Powys is shortchanged and languishing close to bottom of the table in terms of funding. First it was Powys Teaching Health Board getting a raw deal, and now our local council is getting the same.

‘’Welsh Governments funding formula has prioritised South Wales with this settlement, ignoring the needs of councils like Powys that have been left near the bottom of the table.

“I want to see a funding formula that reflects the situation on the ground, promote fairness across the whole of Wales because here in mid Wales, we are being forgotten about."

Implications for Powys

While the additional funding is welcome, the lower-than-average increase places Powys in a tight spot.

Local residents could face difficult decisions around council tax increases and service adjustments.

Speaking on the challenges ahead, the Cabinet Secretary acknowledged, “Even with this increase, our councils will still have to make difficult local choices.”

Powys County Council leaders must now assess how to allocate the funding increase effectively. With a rise that trails behind most other authorities, the Council will need to weigh critical investments against ongoing austerity pressures.