Powys residents will have to dig deep into their pockets from April 1, as a Council Tax rise of 4.9 per cent for next year has been confirmed this afternoon.

At a meeting of Powys County Council on Thursday, February 26, councillors narrowly voted in favour of proposals for the 2026/2027 budget.

Finance portfolio holder Cllr David Thomas (Labour – Tawe Uchaf) presented the draft budget, which explained the need for the 4.9 per cent Council Tax increase, as well as outlining that the council will need to make £12 million in cuts and savings.

But £6 million will be saved by reducing the council’s pension contributions.

Council Leader Cllr Jake Berriman (Liberal Democrat – Llandrindod South) reminded councillors of the promises he made when elected to the role at the annual meeting last May.

Cllr Berriman said: “I committed then to go into this budget round modelling services and cost reductions to achieve a Council Tax of less than five per cent.

“This we have achieved.

“This is a sound budget, a budget that makes the most of the resources we have available.”

Powys Independents joint group leader Cllr Beverley Baynham (Presteigne) pointed out that the 4.9 per cent Council Tax increase follows one of 8.9 per cent for this year (2025/2026) and 7.5 per cent in 2024/2025.

She added that next year’s increase was being proposed “despite” a predicted £1.4 million underspend on this year’s budget.

Cllr Baynham said: “Schools are being closed, our roads are in a desperate state of repair and here we are heaping more misery on the residents of Powys, we are continually asking them to pay more for less.

“I cannot support this budget.”

Conservative group leader Cllr Aled Davies (Llansilin and Llanrhaeadr-ym-Mochnant) welcomed the reduction in pension fund contributions.

He explained this followed a decision in the past by the previous council to pay into the fund to address a deficit within it.

Cllr Davies said: “The current cabinet are reaping the benefit of that.

“That reduction in pension contributions is doing all the heavy lifting in this budget and is half of the savings.”

He added that he could see “little evidence” that the council’s transformation programme, known as “Sustainable Powys”, is working.

Cllr Davies lamented the state of the roads, which he said is a reason for people to turn down jobs in rural areas.

“You will see a significant deterioration on our C (county) roads, it’s diabolical,” said Cllr Davies.

Due to this, he would not be supporting the budget.

Plaid Cymru group leader Cllr Elwyn Vaughan (Glantwymyn) reminded the council that it was the Plaid Cymru group in the Senedd that had made a deal with the Labour Welsh Government which secured more funding for local government.

Cllr Vaughan said: “However, it is frustrating that Council Tax has to be put up again.

“We need to have a national conversation on the appropriateness of Council Tax as a way of funding local government.”

He believed that the council’s reserves, budgets or surplus at the end of this financial year should be used to fix roads.

Reform UK group leader Cllr Iain McIntosh (Yscir with Honddu Isaf and Llanddew) reminded councillors that they had voted down his “common sense” motion to introduce an Elon Musk-style DOGE (Department of Government Efficiency) to find cost savings and efficiencies last summer.

Cllr McIntosh said: “Fast forward to where we are today and we face ongoing financial instability, service pressures and yet another demand for money from residents.

“The opportunity to act was there but this council chose not to take it.”

He believed that the council needed to “reset” its approach to finance and a culture that “rewards efficiency” and “questions spending.”

Cllr McIntosh said: “Every possible efficiency should be exhausted before we ask our residents to pay any more.”

He too said that his group would be voting to reject the budget.

Cllr Thomas stressed that due to Council Tax reduction schemes and discounts, “only 47 per cent” of households would pay full Council Tax.

Cllr Thomas said: “The most vulnerable of residents are being protected and I’m pleased about that.”

At the end of the debate, four votes were held on the budget recommendations:

On the Medium-Term Financial Strategy up to 2031, 31 councillors voted for, 28 against and four abstained.

On the Council Tax increase and revenue budget for next year, 31 councillors voted for, 29 against and four abstained.

On increases to fees and charges, 33 councillors voted for, 28 against and one abstained.

The remaining six recommendations, which included the capital strategy and building programme as well as money borrowing limits, were all taken together.

This saw 34 councillors vote in favour and 29 vote against.