Powys gets another raw deal

News that Powys will face a funding cut from the Welsh Government in the coming financial year has been greeted as ‘disappointing’ by the county council.

The council was informed last night that its annual funding would be reduce by 0.5 per cent for the year 2017/2018 – one of the poorest funding settlements in Wales.

Deputy Leader and Cabinet Member for Finance, Councillor Wynne Jones said: “A reduction of 0.5 per cent when coupled to inflation means a two per cent reduction in our budget. The settlement will do little to reduce the financial pressures we are facing and means the budget reductions we have set out as part of the medium term financial year will remain.

“It is clear that Powys has benefitted from the recognition that providing services in rural areas is more expensive and I thank the minister for that recognition. The change means that Powys is much closer to the average funding settlement in Wales than before.  

“However, budget reductions and increasing service pressures mean we will need to reduce our spending by £9.5m this financial year as part of an overall target of £29.8m over the coming three years. Earlier this year we moved to a three-year financial planning cycle and that will allow us flexibility to better manage our resources.

“Reductions in the county’s population figures and projected declines in school aged pupils have a detrimental impact on the county’s financial settlement. The fall in pupil, in particular, has had a significant impact on this year’s settlement.  

“We need time to analyse today’s provisional settlement to fully understand the implications for the county and for individual service areas such as schools and social services,” he added.