Kirsty Williams AM, leader of the Welsh Liberal Democrats, has written to First Minister Carwyn Jones saying her party will vote against the Local Government Settlement unless a better deal for rural authorities is put forward.

The Welsh Government last week allocated its budget settlements to all of Wales’ 22 local authorities and confirmed Powys would take the biggest cut to its funding.

The council’s budget from the Welsh Government for the 2016/17 financial year will be just over £168m, down from £175m.

Last year the Welsh Government introduced a ‘funding floor’ which better protected rural councils, however this year it has not done so.

Wynne Jones, the council’s cabinet member for finance, warned services other than education and social care could be “wiped out”.

The finance chief told the Express even though Powys faces the biggest cut in funding its biggest problem is the Welsh Government has directed it to spend an extra £1.3m on schools and £1.1m on adult social care - a budget the council intended cutting by £5m over the coming three years.

“If we’ve now got to increase the budget by £1.1m rather than take £5m from it, it’s fairly easy to see our budget is £6m wrong. That £6m has got to come from somewhere and that is only a narrow band of services that have already been hard hit.

“If that directive remains in place we are looking at wiping away a lot of valuable services.

“We know those services sit within the remaining 35% of the council, libraries, museums, leisure centres, rights of way, regeneration and highways. Those services have already provided the majority of the £40m saved over the last three years and if they’re hit again they simply aren’t going to exist.

“The stupid thing about this is if we were allowed to get on with it we could do this and keep services, we have a plan for that.”

Ms Williams AM, said: “There is absolutely no way we could support cuts that hit rural areas so badly.

“The Welsh Liberal Democrats are clear that we will vote against the Local Government Settlement unless action is taken to mitigate these cuts. We are calling on the Welsh Government to introduce a rural grant that would limit the reductions for the councils worst hit. I have been discussing this issue with Government Ministers to persuade them to introduce a grant. The fight for a better deal in rural communities is not over, as the council settlement is still in draft form. The Welsh Liberal Democrats are leading the fight for a better funding deal for our communities.

“In the longer term, we need a fairer funding formula that recognises the higher costs that rural authorities face in delivering key public services.”

Conservative Assembly candidate Gary Price called on the Lib Dems to join the Conservatives in voting down the budget.

Mr Price, who is also a Powys county councillor, said proposed cuts of up to 4.1% would “put his authority at the back of the queue again”.

He said: ‘I am glad the Liberal Democrats, and in particular their leader Kirsty Williams, have finally seen sense on the issue of the local government settlement.

‘Rural communities like ours cannot go on bearing the brunt of cuts imposed by Welsh Labour.

‘Our way of life is already under threat, thanks to a reduction in funding in the past – made possible with the help of the Liberal Democrats, who now claim belatedly claim they want to stand up for rural Wales.

Mr Price said Ms Williams’ call for a rural grant to limit the reductions for councils worst hit by cuts, “is not enough”.

“What we need is a strong voice in this region, someone who is willing to stand up and fight for essential services that preserve our way of life; like good local schools, more support for the farming industry and a new approach to local businesses so that they can thrive.

“If Kirsty Williams and the Welsh Liberal Democrats are serious about protecting this region they should join the Welsh Conservatives and vote down the budget.”

• Kirsty Williams column: page 5