The leader of Powys County Council has warned that councils are facing a financial ‘gulf’ with a ‘painful picture’ emerging for services if authorities are not given more money from the Welsh Government.

Giving evidence on the Welsh draft budget to the Senedd’s local government committee on 13 November, Cllr Jake Berriman said: “There’s a great deal of nervousness around the potential of a roll-over budget of around two per cent.

“Even at the 2.5 per cent that has been modelled, that is opening a gulf – a shortfall in budget projections due to in-year pressures.”

He warned of £560m of pressures, “which clearly won’t be covered” by the 2.5 per cent average increase for councils proposed in the Welsh Government’s draft budget.

Cllr Berriman added: “We’re looking nervously across the border at authorities in England which have had section 114 notices [effective bankruptcy] on them and we’ve seen the devastating effects that has as those authorities lose control over their budgets.”

The Liberal Democrat stressed: “We want to avoid that at all costs.”

He called for a “meaningful” funding floor to ensure no council receives an increase less than a certain amount, “reducing the impact of winners and losers out of the settlement”.

Ministers have proposed a 2.3 per cent funding floor in the 2026/27 draft budget.

The Welsh Local Government Association has warned of a funding gap of £436m based on a two per cent increase, the equivalent of 14,000 jobs or a 22 per cent average council tax hike.

Cllr Berriman added: “Those frontline services, as ever, are suffering this year and will be suffering next year.”

He warned of a “painful picture”, with every one per cent less in the settlement from central government resulting in a three per cent council tax increase in Powys.