Massive review of all services as council could face more cuts

Last week Powys county councillors voted through the budget for the coming year, which includes a five per cent council tax hike and is expected to yield £3.5 million.

It means the average band D tax payer will pay an extra £56 a year.

A heated debate in the full council meeting on Thursday heard arguments from both sides, with the Independent/Conservative coalition cabinet being accused of bringing austerity to the streets of Powys.

Despite the council tax rise, the financial problems for the local authority aren't over.

Cabinet member for finance councillor Aled Davies said the council faces a £17 million shortfall in 2019/20, and it cannot continue in its current form.

He said the authority will need to re-consider the delivery of all services immediately.

He said: "Our net budget this year will increase from £240 million to £247 million due to that essential investment.

"But, we face a £17 million shortfall for £2019/20 budget and the scale of action required in the next years to meet that challenge will drive huge change across the council.

‘’We simply cannot afford the council in its current form we will have to transform the way we deliver services. We will have to reconsider the delivery of non-statutory services and re-assess the level of statutory provision.

"That work will start immediately.

“Our future plans will include capital investment throughout the county, it is important that we continue to renew core infrastructure such as schools and housing.

"Maintaining the capital programme is vital for the regeneration of the county’s economy as well as reducing the council’s running costs."

The meeting heard last week that Powys tax payers have to fund 30 per cent of the council budget, which is more than most council's in Wales.

That is due cuts in their settlement from the Welsh Government year on year.

Councillor Davies insisted the money that will come in from the substantial council tax increase will help support the most vulnerable people in the county.

He added: "Like all county councils in Wales we are facing increasing costs as a result of extra demand on services, at a time when resources are under severe pressure.

“As a council we are responsible for protecting the most vulnerable, and clearly some of our services have been found wanting.

"The additional revenue will be used to help support key services, particularly children and adult social services. We must look after the most vulnerable in society and restore confidence in those services.

“We know our schools are facing challenging financial times and our plans will provide an additional £1m to help them with inflationary pressures.

“Powys along with nine other councils will see a cut in the funding it receives from Welsh Government in April.

"It takes a 2.4 per cent increase in Powys council tax just to replace every per cent cut from Welsh Government – who provide 70 per cent of our funding.

"Council tax payers in Powys fund the remaining 30 per cent, few local authorities in Wales have to self-fund to that level."