Plans for a 4.25 per cent rise in council tax in Powys were due to come under fire at a full council meeting today as councillors say they face a big challenge.

Council members fear that they are now facing one of the most difficult years in the council’s history.

Cost-cutting exercises have already taken place but a 4.25 per cent increase would be one of the highest inflation busting council tax rises in the region.

In neighbouring Shropshire the increase will vary from area to area with the highest being set at 3.5 per cent.

The increase would mean that council tax for a band D property would go up from £852.92 to £889.17, a rise of £36.25.

Councillor Gwilym Vaughan, board member responsible for finance, said that the council was now facing increased pressure because of a poor budget settlement – permission to spend – from the Welsh Assembly.

He said: “A poor financial settlement and increasing service pressures have made this budget one of the most challenging in the council’s history.

“We received a one per cent minimum increase from the Welsh Assembly Government but even that funding floor, worth £600,000, came with a clear warning that it should not be used to subsidise council tax.”

He added: “Despite the current financial climate we are planning a £2.5 million investment in social care services, an area where the county is experiencing severe pressure.”

Members of Powys County Council were deciding whether or not to support the 4.25 per cent increase at the crunch meeting today in Llandrindod Wells.