Powys residents face a 7.5 per cent council tax hike as the county council attempts to plug an £18m black hole in its budget.
Powys County Council said it is “facing additional costs of over £18m next year alone, due to inflation and increases in demand for council services while the local government provisional settlement from Welsh Government is not sufficient to meet the severe pressures the council faces.”
The council warned that “difficult decisions are needed” in order to balance the budget.
The council’s Cabinet are now considering £11m of savings, a recommended 6.5 per cent council tax increase for council services with a further one per cent to support the £1.1m increase in the Fire & Rescue Authority annual levy imposed on the council.
Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation, said: “The council, which is again developing its financial plans in an extremely challenging economic context, is facing severe financial pressures for the 2024-25 financial year and the foreseeable future.
“Powys is not alone facing a bleak financial future, local government throughout Wales is facing the same severe pressures.
“The Welsh Local Government Association has said that councils in Wales will be facing an estimated funding shortfall of £432m.
“Through our draft budget, we are trying to limit the impact on the delivery of front-line services as much as possible within the financial constraints the council faces but, inevitably, there will be some reductions in services or changes to how or from where services are delivered.
“In proposing the council tax increase, Cabinet has carefully considered what Powys residents can afford in light 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.”
Cabinet will be considering the draft budget on Tuesday, 16 January 16.
If given the go-ahead, it will then be considered for a final decision by Full Council on Thursday, 22 February.