Council tax bills in Powys are set to go up by 4.9 per cent from April.

Details of Powys County Council’s draft budget for 2026/2027 have been revealed ahead of the draft budget going before senior councillors at a meeting of the Cabinet on 20 January.

The report explains that next year the council predicts its budget need will be £402.547m which is over £35m more than this year’s budget which is £367m.

The Welsh Government is set to give Powys a 4.2 per cent funding increase which takes the figure up to £267.532m.

The Council Tax increase is predicted to provide an extra £7.388m which takes the figure up to £122.982m giving a combined total of £390.514m.

This still leaves a gap of just over £12m which will need to be filled by cuts and savings.

The report said: “In proposing this increase, there has been careful consideration to affordability for Powys residents in light of the ongoing impact of the cost-of-living crisis, together with the ongoing need to meet increasing demand and inescapable cost pressures on vital local services upon which they rely, particularly the most vulnerable.

“The setting of Council Tax is not subject to approval as part of this report, as this is a matter for full council determination.

“However, the report recommends the level of Council Tax to be included in the budget that goes to council.

Director of Corporate Services and s151 officer Jane Thomas said: “The significant impact of continued inflation, rising costs and additional service pressures have all added substantial financial pressure to the council’s budget.

“The funding settlement the council has received this year is improved from that which was estimated; however, the cumulative effect of increasing costs far outweighs the additional funding provided creating an even greater challenge in maintaining financial stability.

“In order to meet the statutory responsibility to set a balanced budget the proposal again includes a further significant level of cost reduction.”

With an expected change of government in the Senedd next year Ms Thomas warns that future budgets could be “even more difficult.”

Ms Thomas said: “The programme of change to deliver sustainable Powys remains critical to ensure that the council can remain financially stable and provide sustainable services in the long-term.

She predicts that by the end of March 2031 cuts and savings that need to be made could be as much as £31 million.

The report will be presented to Cabinet by Finance portfolio holder Cllr David Thomas.

He said “We have worked hard to present a balanced budget for 2026-27, limiting the proposed Council Tax increase and prioritising investment in schools, social care and essential infrastructure.

“However, the medium-term outlook remains challenging, and we will need to continue our transformation journey to deliver savings and protect vital services for our communities.”

The county council’s final budget proposals will be voted upon by full council at a meeting on 26 February.