Extra government money for Powys welcomed 'but tough decisions still needed'

On Wednesday, the Welsh Government announced its provisional local government settlement.

The council's finance portfolio holder, Councillor David Thomas, said: “While we welcome the provisional settlement, the council is still facing tough decisions due to continuing challenging economic circumstances.

“The economic outlook remains bleak which means that we will still have to take difficult decisions to meet budget gaps due to energy bills, inflation and pay costs.

“We will still have to consult our communities on some very difficult decisions to help ensure that vital services remain viable for those who need them.”

Powys County Council is set to receive an 8.7 per cent increase in funding from the Welsh Government for the 2023-2024 financial year.

This equates to an increase of just under £18.3 million and will see the council’s funding rise from £210.090 million this year to £228.388 million for next year.

The announcement saw the authority climb a place from sixth to fifth in the Wales local authority table – having languished in the basement for several years.

Rebecca Evans, Welsh Government minister for finance and local government, said: “When I announced our budget I prioritised the protection of frontline public services, and this increased funding to councils – who deliver so many of these services – is a vital part of that.

“I recognise however that inflationary pressures being faced by services mean that local authorities will still need to make difficult decisions in setting their budgets.

“We will continue to work closely with local government to meet the shared challenges we face.”

It is expected that Powys will set its budget, including the level of council tax which is added to the government funding, in late February or early March

The Welsh Government has started a seven-week consultation on the provisional settlement, which will end on February 2.