Get set for a 4% rise in council tax

Home owners can expect an inflation busting 4% rise in council tax as Powys County Council looks to make £16million worth of savings in the 2015/16 financial year.

Leader, Councillor Barry Thomas, said that a remodelling of services will be key to the cuts and warned residents that more services will be lost to the squeeze.

But the size of the council tax increase, four times the current inflation rate of 1%, will stun residents who have already suffered consecutive hikes in recent years.

Setting out the council’s budget strategy for 2015/16, Councillor Thomas said: “The Chancellor’s autumn statement indicated that there would be substantial reductions in public spending to reduce the national debt. The impact on Welsh Government funding support along with increasing local spending pressures shows that our assessment of a £70m funding gap by 2020 is prudent.

“While it is clear the council has a good record of delivering savings – we have reduced spending by more than £36m since 2012 – and efficiency savings will continue to be important, they cannot deliver the scale of reductions needed.

“We must continue to change the way we operate, re-commissioning more of our services but with reduced budgets. Some services will inevitably cease unless they can be delivered through other ways such as through local organisations.

“The council will become a smaller organisation with some people being employed in future by others, such as not for profit, commercial or voluntary organisations. And, we will continue to bring forward proposals to reduce the cost of running the council.

“Next year there is funding gap of more than £16m and we have already identified the areas where the majority of the savings will be generated along with increased income, including a four per cent rise in council tax.

“Although the current focus is on the next financial year we have to plan for the future and the projected reduced funding for local government to the end of the decade.

“The delivery of further savings over the coming years will not be easy but what is certain is that they will have to be delivered in order to ensure the council remains financially sound and viable going forward,” he added.

The budget strategy will be set out at a seminar for the council in January with the 2015/16 budget and council tax being set in March.