Budget is council's most difficult yet says its finance leader

A meeting of the full council will be asked to approve spending plans of more than £326 million for 2023-2024, financed by a combination of funding from the Welsh Government and a below-inflation increase in council tax, when it meets on Thursday, February 23.

Councillor David Thomas, cabinet member for finance and transformation, said: “A better than anticipated local government settlement has allowed the council to keep the council tax increase to a minimum despite unprecedented financial pressures.

“The cabinet proposes a below-inflation council tax increase of 3.8 per cent in its draft budget. The final figure will move to five per cent to fund an increased fire authority levy.

“Despite the increased funding it has been the most difficult budget-setting process the county council has ever experienced. The impact of high inflation, increased demand for social care, staff pay and funding post-Covid-19 recovery, have combined to create an extremely difficult position.

“Our priority throughout has been to protect services, particularly those that support people at this most difficult of times, ensuring our schools receive all the additional funding provided by Welsh Government, resulting in an additional £5.6m investment in education. We have also provided an extra £500,000 for energy efficiency schemes in schools."

Councillor Thomas added: “Every budget includes a mix of essential growth to fund services and reductions, this year despite an overall increase in our budget we have identified more than £16m in reductions by delivering services more efficiently or at reduced cost.

“By taking early action to reduce council spending through tighter financial controls, moving staff to main offices to reduce costs and lowering temperatures in corporate buildings, we have achieved our goals without impacting frontline services.

“We are continuing work to convert streetlights to more efficient LED lights and reducing staff travelling through digital ways of working, reducing costs and cutting the council’s carbon footprint. Our refuse and recycling systems remain at high levels, surpassing the Welsh Government’s recycling target.

“However, the proposed council tax increase is needed to balance our budget and put us on a sound footing for the coming financial year. Proposing a below-inflation rise will limit the impact on Powys residents, who like everyone else are feeling the impact of the cost of living crisis.”