Machynlleth Town Council's accounts have revealed the council runs a cafe at over a £16,000 loss to the taxpayer.

According to the council’s own accounts, the cafe was projected to lose £58,257 in the 2025/26 financial year.

Public council documents show a £16,705 actual loss as of 30 November 2025, and though the Mayor said the £58k loss was not achieved by the end of the tax year in March, he did not state what the final figures were.

The projected earnings for the cafe for that year were £95,000, whilst projected to cost £153,257 to run.

This year's 2026-27 projected budget forecasts Caffi Y Plas to lose the council £15,772.

The council is majority-funded by the taxpayer; this January the council voted through a precept request to take £369,045 from the taxpayer via council tax.

The longstanding Mayor, Jeremy Paige, said the cafe’s finances for this year were “much more promising” thanks to contract changes and altered methods of working: “We maintained our 5-star hygiene rating (some notable local businesses did not) and with a new cafe supervisor in place continue to improve all areas of the cafe.

“The most recent figures from April to July show a deficit of £2,116. This does not include stock held, capital assets and VAT repayments due for this cost centre, all of which would improve that figure.

“We continue to be the best employer we can be with guaranteed hours for staff at NALC pay scales and a pension scheme.

“Our staff turnover is low, and I am proud of that. The welfare of our staff is important.”

In the 2025-26 budget, the cafe was projected to spend more on staff alone (£112,007) than it would make in total (£95,000) - that was before the cafe’s expenses on food and drinks (£35,000).

Speaking to residents, one described it as "baffling" that the council would continue to fund a business that clearly wasn’t operating profitably.

Concerns over the running of the cafe have repeatedly been raised in council meetings by multiple councillors.

The council voted through the budget and precept request by majority vote, despite being aware that the accounting was inaccurate at the time of the vote - they had simply run out of time to make the request to Powys County Council.

Councillor Kim Bryan said: "The Town Council has always taken the café's financial performance seriously.

“While the café recorded a loss in the last financial year, we have been actively reviewing its operation and taking steps to improve its long-term sustainability while also protecting local jobs and maintaining an important community facility.

"We are already seeing encouraging signs, with income improving in recent months, and we have recently appointed a new café supervisor to help build on that progress.

“I am reassured that the council remains committed to ensuring the café is managed responsibly and will continue to monitor its performance closely as these improvements take effect."

Community and town councils have been struggling with budgets for many years, as funding has been cut to local authorities, and town councils have been increasingly asked to take on responsibility for assets (the recently reopened Machynlleth public toilets being a prime example of a facility that used to be county council-run).

With the austerity era forcing councils to become more business-like in their outlook, needing to make money to cover costs over running public assets for public good, many councils have struggled.

No Machynlleth town councillors are paid for their work and rarely claim expenses, even for travel. Town councils, including Machynlleth, manage assets for the town, including the town clock, Plas Georgian mansion and grounds, including managing the renovation of the Old Stables (Hen Stablau) into visitor accommodation, as well as advocating for their residents to authorities.

The cafe offers hot and cold drinks and food throughout the week from the Plas, as well as catering for events that are hosted at Y Plas.

The cafe could be seen as a community asset that was never designed to make money; however, in this cost-of-living crisis, some residents who did not want to be named are criticising the council for not looking out for their purse in a town that is charged the highest council tax in the largest county in the country.