Provisional Budget Settlement from Welsh Government

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Difficult decisions will still need to be taken despite an increase in its local government provisional settlement from the Welsh Government, Powys County Council has said.

The council has been told that its annual funding would increase by 3.2% for the 2025/26 financial early – less than the 4.3% Welsh average increase.

The increase will not be sufficient in meeting the severe pressures the council is currently facing due to increased demand for services, price inflation, provider costs and national pay awards.

Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, said:

“Although we have seen an increase in our local government provisional settlement from the Welsh Government, the reality is that there is still a funding shortfall that we will need to address to ensure we deliver a balanced budget.

 

“It is clear that the money available to spend on public services really is becoming ever-more restricted and this will dominate the way we deliver services for many years to come.

 

“The council is facing some difficult decisions as we look to deliver a balanced budget which could see changes to the way we deliver council services as well as an increase in council tax.”

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