Council tax bills in Powys could rise by 3.9 per cent – generating £3.3 million for council coffers.

On Tuesday, January 26, Powys County Council's cabinet is expected to be presented with the draft budget for 2021/22 by finance portfolio holder Cllr Aled Davies (Llanrhaeadr-ym-Mochnant & Llansilin/Conservative).

Just before Christmas 2020 the Welsh Government announced a four per cent rise of just over £7.3 million in funding for Powys.

This takes the draft revenue settlement for Powys, from the Welsh Government up to £191.897 million.

With the Council Tax and grant funding added to the budget, the total figure for the 2021/22 will be £280.664 million – £11 million more than was available for the current year.

Funding to deal with the coronavirus pandemic is a separate issue.

While Powys is set to receive more funding from the Welsh Government, years of languishing towards the bottom of the Welsh Local Authority funding table still means that Powys is set to receive £1,449 per person, compared to the Wales average of £1,471.

The report says: “The Local Government Revenue Settlement for 2021-22 provides Powys with an increased level of funding.

“But there is no indication that this level of funding will continue beyond this year, the level of uncertainty surrounding the pandemic, and its impact on the UK economy and public finances will be felt for many years to come.

“The council’s budget is being set within this uncertainty.

“We continue to face significant pressures to manage the increasing demand for services whilst driving improvement across social care and education.

“The proposed increase in council tax will help the position but the council must seek other opportunities to identify alternative sources of funding.”

During the next few weeks the council's scrutiny committees will get the chance to look at and comment on the budget proposals.

It is expected that the Welsh Government will set its budget in mid February.

PCC will then decide the budget at a full council meeting on February 25.

On March 4, a  further council meeting will be held to formally set the budget as a legal requirement.

Precepts from Dyfed-Powys Police, Town and Community Councils will be added to the total each household pays.