INTERVIEW: Council bosses warn of cuts and tax rises

Difficult choices will be made in the next few months as Powys County Council (PCC) looks to address its budget problems.

Next year, about £17 million will need to be found to plug a funding black hole, and £41 million over three years.

Ratepayers in Powys are facing another rise in Council Tax. Officially the cabinet says it could be at least 5% with rumours that it could be in double digits.

The only way this will be done is with radical change, which will leave many residents angry that important services will disappear or change significantly.

Acting Chief Executive, Mohammed Mehmet, and Council Leader, Cllr Rosemarie Harris, met with the Local Democracy Service to discuss the situation.

Dr Mehmet, said: “When we’re talking about cuts, they have been happening year on year.

“Many are going to be unpopular and local authorities don’t actually want to do them. You can’t set budgets any longer simply using efficiencies and restructuring and taking money out of management.

“Authorities are doing all of that as there has been year on year negative settlements. It’s best to be honest with the public, as things they value are being considered for reduction or cuts.

“It is inevitable, especially if we continue to receive reductions as we expect for the next two or three years. It’s finite resources that are being reduced year on year.

“In terms of being honest, you cannot continue taking double digit millions of pounds out of a budget year on year and keep everyone happy and that is the reality of local government.”

And Dr Mehmet believes that the problems turning the Children’s Service around following a damning report by inspectors last year does not make much difference to the financial problems.

In the past, Dr Mehmet has supported re-organisation of local authorities in Wales, including merging authorities.

It has not been suggested as merging PCC, a Mid Wales local authority, with Ceredigion would be too big to manage.

Dr Mehmet continued: “It’s a choice, fund local authorities properly or reorganise, so that funding several lots of chief executives, cabinets etc are cut. I’ve seen it as a political choice.

“And in Wales the choice is funding local authorities or health. We are in an either or situation.”

Council Leader, Cllr Rosemarie Harris, believes the Government’s funding formula does not help Powys and recognises the importance of the council as the major employer in the county.

Cllr Harris said: “The formula doesn’t favour Powys the way the money is divvied out. We don’t measure well on the deprivation scales as a lot of other authorities do.

“We tend to be car owners, living in detached houses, there’s not a lot of free school meals or people on benefits. The majority of people are in work, but low paid, so quite a lot works against us and it’s going to be difficult to turn those things around.”

Cllr Harris added: “Powys is an important employer, by far the biggest in the county, the public sector is important to people as we have one of the lowest wages in the UK and we have to bear that in mind.

“The county is so huge and rural, that’s the challenge to delivering services.”

During the next couple of months, how PCC is set to change will become clearer and a new face, Dr Caroline Turner as Chief Executive, will be implementing the strategies and plans being finalised by Dr Mehmet.