Powys wants whopping 7.5% Council Tax increase

Powys County Council wants to add a whopping 7.5% to the Council Tax after saying ‘difficult decisions’ are needed in 2024/25 to balance the books.

The council said it is facing additional costs of over £18m next year alone, due to inflation and increases in demand for council services while adding that the local government provisional settlement from Welsh Government is not sufficient to meet the severe pressures the council faces.

To balance the budget, the Cabinet are considering £11m of savings, a recommended 6.5% council tax increase with a further 1% to support the £1.1m increase in the Fire & Rescue Authority annual levy imposed on the council.

Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, said: “The council, which is again developing its financial plans in an extremely challenging economic context, is facing severe financial pressures for the 2024-25 financial year and the foreseeable future.

“Powys is not alone facing a bleak financial future, local government throughout Wales is facing the same severe pressures. The Welsh Local Government Association has said that councils in Wales will be facing an estimated funding shortfall of £432m.

“Through our draft budget, we are trying to limit the impact on the delivery of front-line services as much as possible within the financial constraints the council faces but, inevitably, there will be some reductions in services or changes to how or from where services are delivered.

“In proposing the council tax increase, Cabinet has carefully considered what Powys residents can afford in light of the cost-of-living crisis, together with the ongoing need to meet increasing demand and inescapable cost pressures on vital local services upon which they rely.”

Cabinet will be considering the draft budget next Tuesday. If given the go-ahead, it will then be considered by Full Council on Thursday, February 22.

Powys County Council’s share makes up the majority of the Council Tax paid by householders, with other slices coming from town or community councils, Dyfed-Powys Police and Mid and West Wales Fire and Rescue Service.

The draft budget can be viewed at https://powys.moderngov.co.uk/ieListDocuments.aspx?CId=137&MId=8074&Ver=4.