Services across Powys – including improvements to buildings and roads – will be hit next year after the announcement of Welsh Assembly budget cuts, it was claimed today.

Powys County Council will be receiving £2 million less funding than it received last year from the government.

Bosses said today the fall in funding would also have a “knock-on” effect for many of the region’s contractors because work on the authority’s buildings and roads would have to be cut.

John Evans, communications manager for the council, said the authority would have some very difficult decisions to make over the following months.

He said: “Although this is probably as good an outcome we could have expected in the current financial climate, this settlement will present many challenges which we have to meet face-on.

“This settlement does not take into consideration the rate of inflation or meeting the increasing demands for council services that are anticipated, which will place further pressure on our budgets.

“Our capital funding has been cut be a fifth. Whilst this was not unexpected, this will affect our ability to improve our buildings and roads and will have a “knock-on” consequence for many local contractors.

“Some very difficult and unpopular decisions may have to be taken and the council can expect some very challenging debates over the coming months.”

Making the announcement yesterday, Carl Sargeant, Assembly local government minister, said Powys would receive a total of £179 million to fund services — equivalent to £1,338 for every man, woman and child living in the area.

He said in addition, £10 million would be available to support capital projects in Powys. The council will also receive specific grants to support a range of activities including early years and post 16 education, refuse disposal and recycling.

In line with the Assembly’s commitment to protect schools and the vulnerable, Mr Sargeant pledged that more cash would go to schools and social services over the next three years.

But he said: “The challenge of delivering good quality services for less money continues.”

By Anwen Evans