Council faces significant budget shortfall despite increased government funding

26 November 2025

Powys County Council is addressing significant financial challenges for the upcoming financial year, despite an increase in support from the Welsh Government.

Today, the Welsh Government announced a 2.3% uplift in the Revenue Support Grant. However, the council anticipates a £19 million shortfall in its budget for 2026-27.

Cllr Jake Berriman, Leader of Powys County Council, and Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, commented: "Although our provisional local government settlement from the Welsh Government has increased, it does not fully meet our rising expenditure.

"Growing demand for services, inflationary pressures, and pay increases for teachers, care workers, and other staff mean we face difficult choices as we work towards setting a balanced budget for 2026-27."

The councillors noted that the authority has delivered £52 million in savings over the last five years but emphasised that additional measures will be necessary.

"Raising council tax alone will not cover the gap. We must review which services can be sustained and continue to transform how we deliver them to ensure financial stability while meeting residents' needs," they stated.