Prepare for council tax rise and more service cuts
As the regional authority crunches the numbers for next year’s budget, Cllr Jake Berriman, Leader of Powys County Council, and Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, have issued an initial statement preparing us for the worse.
In previous years, Powys has initially proposed a whopping council tax rise for the following year, but following the usual backlash they trim it back with the aim to 'soften the blow'.
But with inflation dropping steadily and currently standing at 3.6%, anything higher than this will likely draw a strong public and political response, especially with the pair saying that service cuts are also likely.
The council said that Powys County Council is addressing “significant financial challenges for the upcoming financial year”, despite an increase in support from the Welsh Government.
Today, the Welsh Government announced a 2.3% uplift in the Revenue Support Grant. However, the council anticipates a £19 million shortfall in its budget for 2026-27.
This has prompted the following statement from the senior pair of councillors: “Although our provisional local government settlement from the Welsh Government has increased, it does not fully meet our rising expenditure.
“Growing demand for services, inflationary pressures, and pay increases for teachers, care workers, and other staff mean we face difficult choices as we work towards setting a balanced budget for 2026-27.”
The councillors noted that the authority has delivered £52 million in savings over the last five years but emphasised that additional measures will be necessary.
“Raising council tax alone will not cover the gap,” they said. “We must review which services can be sustained and continue to transform how we deliver them to ensure financial stability while meeting residents’ needs.”
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