Powys County Council proposes 4.9 per cent council tax increase in its budget
A council tax increase of 4.9 per cent and £12 million in savings are planned if Powys County Council’s budget proposals are backed next week
The council’s Cabinet will consider proposals for a balanced budget for 2026-27, which aims to protect vital services, support the most vulnerable, and invest in the county’s future, despite ongoing financial pressures.
The draft budget has been shaped by feedback from residents, councillors and partners, and reflects the priorities identified in the recent budget survey.
If agreed by Cabinet, the proposals will be recommended to Full Council for final approval in February.
The draft budget proposes a 4.9% Council Tax increase—lower than many expected—while prioritising investment in schools, social care, and road maintenance.
Schools delegated budgets will see a 5.7% uplift, and significant additional resources are allocated for adult and children’s social care, including the Real Living Wage for care workers.
Cabinet Member for Finance and Corporate Transformation, County Councillor David Thomas said: "This draft budget reflects our commitment to protecting the services that matter most to our residents, while recognising the very real financial challenges we face. The improved settlement from Welsh Government is welcome, but we must continue to transform how we deliver services and make difficult decisions to ensure Powys remains resilient and sustainable for the future.
“We have worked hard to present a balanced budget for 2026-27, limiting the proposed Council Tax increase and prioritising investment in schools, social care and essential infrastructure. However, the medium-term outlook remains challenging, and we will need to continue our transformation journey to deliver savings and protect vital services for our communities and deliver a Sustainable Powys.
“To balance the budget, over £12 million in savings are planned for 2026–27, building on £120 million delivered over the past decade. These are all aligned with the Sustainable Powys principles and will be achieved through service remodelling, digital transformation, and efficiency improvements, with a focus on minimising the impact on frontline services.
“Our draft capital programme for 2026–31 sets out a total of £742 million of investment, supporting essential infrastructure, including schools, regeneration, and climate action.”
Despite the improved settlement, the Council faces a projected budget gap of £28.8 million by 2030-31, even after delivering all identified savings.
The Council continues to call for multi-year funding settlements and further support from Welsh Government to enable sustainable long-term planning.
The draft budget will be considered by Cabinet on January 20 2026.
If agreed, it will be recommended to Full Council for approval in February.
