Budget approved to protect vital services and support Powys residents
26 February 2026
At the heart of the budget are commitments to keep Council Tax rise to a minimum, increase investment in education, and provide additional funding to tackle homelessness.
The budget includes a 4.9% Council Tax increase, lower than many expected in the current financial climate. This rise will help the council manage significant cost pressures while limiting the impact on residents as far as possible.
Schools across Powys will see a 5.7% uplift in delegated budgets, providing an additional £5.56m to meet rising costs and support school improvement. An additional £1.76m investment will support wider education services, reflecting the council's priority to improve outcomes for learners.
Demand for housing support, particularly temporary accommodation, continues to rise sharply.
To respond to this, the council has allocated additional funding of £499,000 to strengthen homelessness services and ensure households in crisis receive timely and appropriate help.
To support those most affected by financial pressures, the council has also added £600,000 to the Council Tax Reduction Scheme, helping low‑income households manage their Council Tax bills while the council continues to protect vital frontline services.
This additional investment sits alongside the wider Council Tax Reduction Scheme budget of more than £13m, which provides vital help to residents across the county.
With over 53% of Powys households receiving some form of support - whether through discounts, exemptions or Council Tax Reduction Scheme - more than half of households in the county do not pay the full amount of Council Tax, reflecting the council's ongoing commitment to support those facing financial pressures.
To balance the budget, the council has identified £12m in savings through service remodelling, digital transformation, income generation and efficiency measures. These have been designed to minimise the impact on frontline services, with a focus on protecting the most vulnerable.
Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, said: "This budget reflects our commitment to protect the services that matter most to our residents, while recognising the significant financial pressures facing the council. By keeping the Council Tax increase as low as possible and investing in education, social care, and housing support, we are helping to build a stronger, fairer and greener Powys for everyone.
"The improved settlement from Welsh Government is welcome, but it does not cover the full scale of pressures we face. Delivering a Sustainable Powys means continuing to transform how we work, delivering services more efficiently, and focusing our resources where they are needed most so that we can create a more resilient and sustainable future for the county."
