Powys County Council confirms stable finances and continued investment across the county
6 May 2026
New reports being presented to Cabinet on 19 May show that the council is carefully managing its finances during a challenging period, marked by rising costs, high demand for services and ongoing global uncertainty. The approach supports the council's financial resilience.
Jane Thomas, Director of Corporate Services, said: "We know people across Powys are facing pressures of their own, so it's right that we manage the council's finances carefully and responsibly. These forecasts show that we are living within our means, while continuing to invest in schools, roads, housing and community facilities right across the county.
"Most importantly, much of this investment is being supported by external grant funding, which helps protect council taxpayers. While the financial outlook remains challenging, we are in a stable position this year and are planning ahead to support the services that residents rely on now and in the future."
Investing in Powys communities
During 2025/26, the council planned to invest more than £80 million in long term improvements across Powys, helping to strengthen communities, improve wellbeing and support environmental sustainability.
Investment includes schools, highways, council housing, leisure facilities and climate focused projects. By the end of February, just over half of this funding had been spent, with the remaining investment taking place towards the end of the financial year or moving into next year where projects are still being delivered.
Much of this investment is being funded through Welsh Government and UK Government grants, helping to limit borrowing and protect council taxpayers. Projects include:
- Repairs and upgrades to schools
- Road resurfacing, bridges and flood protection
- Improvements to council housing and delivery of new homes
- Leisure centres, libraries and public toilets
- Electric vehicle charging points and local nature schemes
With approved extensions to timescales, some projects have been rescheduled into future years. This reflects realistic delivery timescales and enables better design and value for money, while maintaining overall momentum in the capital programme.
A positive budget position - but challenges remain
The council is forecasting a 1.32% underspend (£3.4 million) on its day-to-day budget for the year. This reflects tight spending controls, planned reprofiling of funds, careful use of grants and improved income in some areas, particularly Adult Social Care.
Jane Thomas added: "Adult Social Care remains one of our most pressured services, with rising demand and increasing costs. Income has been higher than expected this year due to a greater number of jointly funded care packages.
"While this one-off increase in income helps us manage pressures during the 2025/26 financial year, it does not remove the longer-term challenges we face, and we continue to plan carefully for the years ahead."
Any unspent funds will be used to strengthen reserves, helping the council manage continuing pressures such as inflation, fuel costs, severe weather events and growing demand for services. The council is already seeing the impact of world events with cost rises particularly across travel and transport.
Looking ahead
While the council's financial position for 2025/26 is stable, it has been clear that future years will remain challenging. Demand for services continues to grow, and wider economic pressures are expected to persist.
By managing finances carefully now, investing wisely and planning ahead, Powys County Council aims to protect essential services, support communities and continue its progress to a more sustainable financial future.
