Powys' Leader talks about the budget and council tax
This week, Cabinet considered fully funded plans to deliver vital public services in Powys in 2025/26, including a proposed council tax increase of 8.9% - significantly lower than the 13.5% increase predicted last month.
This week, Cabinet considered fully funded plans to deliver vital public services in Powys in 2025/26, including a proposed council tax increase of 8.9% - significantly lower than the 13.5% increase predicted last month.
Although a 3.3 per cent increase in our Revenue Support Grant for 2025/26 has been announced by the Welsh Government, the reality is that it is not enough as we are facing a £22m shortfall in our budget.
As part of our budget plans for 2025/26, we are also proposing savings of £12.3m alongside the council tax increase to ensure that the council can deliver a legally required balanced budget.
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 developing "Sustainable Powys" programme aims to ensure we can remain financially stable and provide sustainable services.
In our proposed 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 homelessness 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 has joined with all Welsh local authority leaders in actively lobbying Welsh Government to provide additional funding through a "funding floor”, to provide a minimum level of funding to all Welsh local authorities. Should a floor mechanism be implemented Cabinet will consider amendments to the budget proposal if there is an increase in funding.
The budget proposals will be considered by a meeting of the full county council on Thursday, February 20th.
Councillor James Gibson-Watt,
Leader, Powys County Council
