New schools will not be built and investment in other Powys council services will not happen unless asset sales, which include county farms, can contribute to their funding, councillors have been warned.

At a meeting of the council’s Finance Panel on Thursday, September 11, the consequences of scrapping the £10 million annual asset sales target and pausing the sale of county farms was outlined to councillors and independent lay members.

Earlier this year, opposition councillors and farming unions argued against the sale of county farms.

This is becsause it could block an avenue for the next generation of farmers to enter the sector.

A motion to scrap the £10 million capital receipts target and pause the sale of county farms was presented and debated at a council meeting in July and following a tense vote was agreed.

The future of the county farms estate is now the subject of a consultation which will end on Sunday, October 12.

Finance portfolio holder Cllr David Thomas (Labour- Tawe Uchaf) told members that he believed that there would be “significant pressure” on the council’s capital project schemes without funding from asset sales.

Cllr Thomas said: “Interest costs have stabilised at four per cent, I don’t think we’ll see any further reduction.

“Inflation is at 3.8 per cent and it’s highly probable that’ll rise, the £10 million target is even more relevant now.”

Director of Corporate Services and s151 officer Jane Thomas said: “I think it’s important that everybody understands the potential impact of us not being able to fund our capital program.

“That will mean we won’t be able to find match funding to continue the development of schools, we may not be able to replace equipment or vehicles, that we have in order to maintain some of our service delivery.”

Ms Thomas said that “questions” had been raised in the media on the levels of borrowing at the authority.

Ms Thomas said: “When we set that capital strategy on an annual basis, we have to be able to demonstrate that it is prudent and affordable, so we are comfortable with the position we are in.

“That is fine for today but the level of investment that’s needed across the whole council far outstrips affordability.

“I want to stress the importance of capital receipts in helping us manage that.”

She believed the motion had “hamstrung” the council’s ability to look at all the assets it holds for potential sales.

Panel Chairman and leader of the Conservative group, Cllr Aled Davies said: “It’s the same old message.”

Chief Executive Emma Palmer stressed: “It is the same and it’s a consistent message, because the position is serious in terms of the development councillors and the public want to see.”

She warned members that without funding from asset sales the funding burden would need to be found from council revenue which could include higher fees, charges and Council Tax.

Cllr Chris Walsh (Labour – Brecon East) asked whether this context had been provided in the farm estate consultation document so that people who take part are: “able to make an informed choice.”

Cllr Walsh said: “We’ve got an understanding of the context but I’m not sure of how wide that is shared in the community.”

Cllr Thomas replied: “I think the consultation makes clear the pressure that the authority’s under with regard to borrowing costs.”

As the discussion continued, Mrs Palmer wanted the Finance Panel to provide a recommendation that would be helpful to the Cabinet on how to manage the capital programme.

Mrs Palmer said: “It’s a whole council approach in terms of managing the budget, with everyone pulling together.

But Cllr Davies said: “We’ll just note that the comments of officers and portfolio holders and the capital budget at this moment and develop our thinking for the future.”

To take part in the farming estate consultation visit: https://www.haveyoursaypowys.wales/farm-estate-policy