NEARLY £2m of extra funding is to be handed to Powys County Council which had warned services faced being "wiped out".

Welsh Government finance minister Jane Hutt announced to the Senedd on Tuesday afternoon Powys will receive an additional £1,933m.

The council finished bottom of the funding pile when the Labour government allocated funds to Wales’ 22 local authorities before Christmas.

It had taken the biggest hit to its budget which was reduced by 4.1% while some other councils saw cuts of less than 1%.

Overall Powys council’s budget was to shrink by £7m from the 2015/16 financial year leading to the council’s cabinet member for finance, Wynne Jones warning of hits to all service areas other than education and social care.

The council had said it was lobbying the Welsh Government and the county’s politicians for additional funding.

Brecon and Radnorshire AM Kirsty Williams said she had held several meetings with Ms Hutt to make the case for a grant to assist rural areas like Powys.

The Welsh Liberal Democrat leader said: "I am delighted that this money has been secured for Powys.

"The Welsh Liberal Democrats have been clear from the very beginning that there was absolutely no way these unfair cuts could be carried through. We made a stand on behalf of our rural communities and I am pleased we have been able to deliver for them.

"The Welsh Liberal Democrats will continue to lead the fight for a better funding deal for our communities.

"The Conservatives have been very cynical in their attempts to mislead people over this issue. This has been yet another episode when they have 100% failed to deliver for rural people. The Tories may seek the media headlines, but not once did they lift a finger to actually mitigate these cuts.

"While today’s announcement is welcome, the Welsh Liberal Democrats believe there needs to be a complete review of the funding formula to deliver a fairer deal for rural areas."

Ms Williams and the Conservatives have been locked in a war of words over the Lib Dems’ support for the Welsh Government budget.

The party had agreed to abstain to allow the government’s budget to pass but Ms Williams had threatened to vote against the government in a separate vote in the local government settlement that determines how much money is allocated to each authority.

Cllr Wynne Jones had previously warned as the Welsh Government has directed extra spending on schools and social care the council only has a limited area in which it can make cuts.

He said: "We are looking at wiping away a lot of valuable services.

"We know those services sit within 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 news has been wlecomed by the county council’s cabinet.

Leader of Powys County Council, Councillor Barry Thomas said; “I am very pleased at today’s announcement of additional funding for Powys, the county had received the lowest settlement in the Wales with a 4.1 per cent cut in funding. The additional funding will help a great deal but will not solve all of our problems, and we still face very challenging savings targets over the next 3 or 4 years.

“I am very grateful to all of the Mid and West Wales Assembly Members for their support on this issue and in particular the work of the Welsh Liberal Democratic Leader Kirsty Williams for her involvement and she has been instrumental in bringing about this additional funding.”

Cabinet Member for Finance, Councillor Wynne Jones said; “As a result of the additional funding we at last now know the level of cuts facing the council and we are now able to take forward budget proposals to the cabinet on February 18. The proposals will include savings of £29.7m over a three year period to produce a balanced budget.

“The Welsh Government’s funding announcement will provide an additional £1.9m in the coming year and will mean that a number of very difficult proposals can be withdrawn. We will be taking forward a proposal that we no longer pursue plans to introduce transport charges for post-16 learners or take forward plans for further rural transport funding reductions and plans to move to a four-weekly collection of residual waste.

“Plans to make further cuts to rural bus services will also not be taken forward in the three year plan and the proposed cut in grant funding for Tourist Information Services has also been dropped from the 2016/17 budget, although there will be a 15 per cent cut in those grants.

“I am delighted to say that that the proposal will also include the provision of an extra £1.2m for the schools delegated budget and an additional £1.05m for adult social services. Powys still faces a very difficult financial period but the Welsh Government’s recognition that it needs additional support is most welcome.”

The council will consider its annual budget on February 25 and set the level of council tax for the coming financial year on March 9.