Tuesday
23
April
Money for Powys slashed
20/10/2011 @ 10:33
Powys County Council is set to receive more than £1m less in funding for its 2012-13 budget, meaning we will all have to tighten our belts that little bit more again.
Carl Sargeant, Minister for Local Government and Communities announced the provisional budget for 2012-13 last night, showing that Powys would receive a 0.6 per cent reduction in funding, or £1.1m.
Council analysts had predicted a slight increase so the new is sure to come as a blow to the council coffers.
And while the full impact of the cut will not be known for some time, the council said the fall in pupil numbers could be partly to blame.
Cabinet member for Finance, Councillor Tony Thomas said: “Powys’ provisional settlement shows a 0.6 per cent reduction, approximately £1.1m, against an anticipated increase of 0.2 per cent we were expecting. The decrease is because of changes in the data that drives the formula, notably pupil numbers in Powys are falling quicker than the rest of Wales.
“Although it is too early to predict the full implications of the reduction there is no doubt the settlement will provide another hugely challenging budget for the council. We have increasing service pressures, growing demands to protect existing assets and high inflation.
“It appears the Welsh Government has decided not to give local councils the additional ‘one off grant’ from the UK Government to freeze council tax, in favour of measures that will support jobs and the wider economy. However, we are acutely aware of the pressures on county household budgets and look to act prudently and responsibility in this tough economic climate.
“The continuing pressure on capital is a major concern, like most councils we have buildings, roads and bridges in need of investment and are the middle of vital school modernisation plans.”
Cabinet member for Finance, Councillor Tony Thomas said: “Powys’ provisional settlement shows a 0.6 per cent reduction, approximately £1.1m, against an anticipated increase of 0.2 per cent we were expecting. The decrease is because of changes in the data that drives the formula, notably pupil numbers in Powys are falling quicker than the rest of Wales.
“Although it is too early to predict the full implications of the reduction there is no doubt the settlement will provide another hugely challenging budget for the council. We have increasing service pressures, growing demands to protect existing assets and high inflation.
“It appears the Welsh Government has decided not to give local councils the additional ‘one off grant’ from the UK Government to freeze council tax, in favour of measures that will support jobs and the wider economy. However, we are acutely aware of the pressures on county household budgets and look to act prudently and responsibility in this tough economic climate.
“The continuing pressure on capital is a major concern, like most councils we have buildings, roads and bridges in need of investment and are the middle of vital school modernisation plans.”
Households will be hoping that this does not result in an increase in council tax.
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