Brace yourselves for a 5% council tax hike

Powys County Council will be expecting householders to pay a whopping 5% extra on their council tax next year, almost double the rate of inflation in the UK.

The eye popping hike will be rubber stamped on Tuesday at a full Council meeting, meaning the average band D property will cost an extra £56.63 for the year.

The rise comes due to Powys being unable to balance its books, with the extra 5% generating an extra £3.5 million, which will only part fund the increased investment of £12.8 million in vital services for children and the elderly, the council’s cabinet has said.

Band D properties will now be charged £1189.20 Powys County Council tax, with the police and town council precepts to be added on top.

Cabinet Member for Finance, Councillor Aled Davies said: “The council faces significant challenges over the next few years due to increasing demand and cost pressures but we are committed to rebuild our Children’s and Adults services through this extra investment and addressing the past failures. We must protect those least able to look after themselves. A further £1 million is also being given to schools to help them deal with inflationary pressures.

“Powys along with nine other councils will see a cut in the funding it receives from Welsh Government in April. It takes a 2.4% increase in Powys Council Tax to replace every 1% cut from Welsh Government.

“Powys County Council’s net budget this year will increase from £240 million to £247 million due to that essential investment. However, a £17 million shortfall remains in the 2019/20 budget. The scale of action required in the next years will drive huge change across the council.

“Our future plans do also include capital investment throughout the county, it is important that we continue to renew core infrastructure such as schools and housing. Maintaining the capital programme is vital for the regeneration of the county’s economy as well as reducing the council’s running costs.

“The average council tax paid in Powys is the third highest in Wales and I am acutely aware that affordability is a big issue when wages, in real terms, have been static for a number of years. We must try to deliver even better value for money for our residents and continue to care for our most vulnerable residents.

“We face huge challenges over the next years but there are also great opportunities to reshape service delivery and support economic growth to enable our children to have great careers and exciting lives here in Powys.”