A lower than first suggested council tax rise is set to go to full council for decision this week.

Extra funding from the Welsh Government has prompted Powys County Council’s Cabinet to reduce a proposed council tax increase to 2.9 per cent, down from an initial 3.9 per cent proposal.

Deputy Leader and Cabinet Member for Finance, Councillor Aled Davies said: “We have considered the position carefully and have chosen to limit the impact on our residents and support our communities.

"It does not mean that all our budget pressures have disappeared, we will have to maintain a cautious approach, but it is welcome news."

Powys Council will decide the budget at a full council meeting on Thursday, February 25.

A new £1.8m Powys Covid Recovery Fund has also been announced. The council said it will be set up from one-off funds and held in a specific reserve fund to help community groups and council services.

Cllr Davies added: “Much of the money comes with specific terms and conditions but some will fund areas the council had expected to manage itself and will provide an improved financial outturn for the Council. The reduced pressure and technical changes in our budget arrangement mean that we can limit the increase in Council Tax to 2.9 per cent – one per cent less than our previous recommendation.

“We are in a position to set aside £1.8m and put in place a Powys Recovery Fund to help community groups, charities, social enterprises, voluntary organisations and council services to support people and communities to respond to the challenges presented by Covid-19."

Powys County Council said details about how Recovery Fund will work will be announced as soon as it has more information.