Powys reveal their Council Tax increase

Plans to deliver vital public services Powys will be considered by the Council's Cabinet on Tuesday including a council tax increase of 8.9% - significantly lower than the 13.5% increase predicted last month.

According to the county council, despite an increase in funding from the Welsh Government the council is facing a £22million shortfall in its budget.

They have also revealed savings of £12.3m are proposed along with the council tax increase to ensure the Council can deliver a legally required balanced budget.

An 8.9% increase would result in a new annual charge of £1,784.63 for a Band D household - an additional £145 a year on average. This is without the charges levied by the police and town or community councils, meaning significant increases in monthly payments for residents.

The council has calculated that to run its services next year it needs £378 million which is a £36.4 million increase from the £341.626 million this year.

The extra funding is needed to deal with pressures which include pay inflation of £7.356 million and “demographic “growth of the ageing Powys population of £8.437 million as well as £3.743 million more to be given to schools.

Cabinet Member for Finance and Corporate Transformation, County Councillor David Thomas said:

“Although we have seen an increase in our local government provisional settlement from the Welsh Government, the reality is that it is not enough to bridge the gap in our increasing costs. 

“The council continues to face increasing demand for services, particularly in social care. Price inflation, provider costs and national pay awards, many beyond our control mean that the council is facing a significant budget gap for 2025-26 and for many years to come.

“It is clear that the Council in its current form is not sustainable for the longer term, our “Sustainable Powys” programme ensures that we can remain financially stable and provide sustainable services.

“In our draft budget we are trying to balance the need of front-line service delivery within severe financial constraints and the overall cost to the council taxpayer. We are taking this action now to ensure that we can continue to deliver care services, schools, highways and homeless support for the people of Powys.

“The planned budget savings will focus on transforming our services, increasing efficiency, driving down costs and raising more income. We will continue to invest in some capital schemes which improve key council assets supporting the delivery of statutory services and delivering budget savings.

“Powys will be joining with Welsh local authority leaders in actively lobbying Welsh Government to provide additional funding through a “funding floor. Should a floor mechanism be implemented Cabinet will consider amendments to the budget proposal following the increase in funding.”

Cabinet will consider the draft budget at a meeting on Tuesday January 14 and if approved will be considered by a meeting of the full council on Thursday February 20.