Senior Liberal Democrat and Labour councillors have agreed the Powys County Council draft budget for 2026/27, which includes a council tax increase of 4.9 per cent.

At the council’s Cabinet meeting today (Tuesday), Finance portfolio holder Cllr David Thomas noted that over half of households in the county receive some form of council tax discount.

Next year, the council predicts its budget requirement will be £402.547 million, more than £35 million higher than this year’s budget of £367 million.

The Welsh Government is set to provide Powys with £267.532 million next year, while the additional council tax increase is expected to generate £7.388 million, which takes the figure up to £122.982 million. Together, this gives a combined total of £390.514 million.

This still leaves a gap of just over £12 million, which will need to be met through cuts and savings, including a £6 million reduction in council pension contributions.

Cllr Thomas (Labour – Tawe Uchaf) said: "It’s important to note this will not impact the pension benefits of current or former employees in any way.

“In proposing this Council Tax increase of 4.9 per cent, there has been careful consideration of affordability for Powys residents.

“More than 53 per cent of our residents will receive support to meet their council tax bills, through exemptions, discounts, or eligibility for council tax reduction, which totals over £13 million for 2026/27.”

He stressed that the Cabinet does not have the final say on council tax, which will be set along with the full budget at a council meeting at the end of February.

Cabinet member for Adult Social Services, Cllr Pete Roberts (Liberal Democrat – Llandrindod South), highlighted findings from the council’s recent budget survey.

The survey, conducted between December 4 and January 4, received 251 responses.

Cllr Roberts said: “It’s worth reflecting in that survey, 65 per cent (163) of residents backed a mix of raising council tax and managing our budgets effectively.

“We asked where people want to prioritise services and they identified Adult Social Care, Education and Highways. We’ve invested £8 million, £7 million and £2.5 million into each of those areas.”

He added that the survey showed that 72.5 per cent of respondents wanted to see investment in schools.

Cllr Roberts said: “There is always the question – are we, as Cabinet, listening?

“And if you look at the responses I think this budget matches our priorities and the public’s priorities on delivering the best we can do for the residents of Powys.”

Council Leader Cllr Jake Berriman (Liberal Democrat – Llandrindod North) alluded to the unofficial budget consultation that he and Cllr Roberts had conducted in Llandrindod Wells.

Cllr Berriman said: “The people we spoke to overwhelmingly sympathise with the difficulty of producing a balanced budget when faced with the scales of what to cut and what to spend.”

The Cabinet voted unanimously to back the draft budget proposals.

Next week, the budget will begin its scrutiny, with all committees given the opportunity to examine the proposals in detail. Opposition groups will also have the chance to present an alternative budget.

The final decision on the 2026/27 budget will be made at a full council meeting on February 26, when all 68 councillors will vote on the proposals.