POWYS council has said it is disappointed the funding it receives from the Welsh Government will be cut next year.

The council has been told its annual funding will reduce by 0.5% for the 2017/2018 financial year – one of the poorest funding settlements in Wales.

The council described its provisional settlement, which means it will have £169.650 million to spend next year, as disappointing".

The authority’s deputy leader, Councillor Wynne Jones, who is also the cabinet member for finance, also warned it will mean the council’s cost cutting measures will continue.

He said: "A reduction of 0.5% when coupled to inflation means a 2% reduction in our budget. The settlement will do little to reduce the financial pressures we are facing and means the budget reductions we have set out as part of the medium term financial year will remain.

"It is clear that Powys has benefitted from the recognition that providing services in rural areas is more expensive and I thank the minister for that recognition. The change means that Powys is much closer to the average funding settlement in Wales than before.

"However, budget reductions and increasing service pressures mean we will need to reduce our spending by £9.5m this financial year as part of an overall target of £29.8m over the coming three years. Earlier this year we moved to a three year financial planning cycle and that will allow us flexibility to better manage our resources.

"Reductions in the county’s population figures and projected declines in school aged pupils have a detrimental impact on the county’s financial settlement. The fall in pupils, in particular, has had a significant impact on this year’s settlement.

“We need time to analyse today’s provisional settlement to fully understand the implications for the county and for individual service areas such as schools and social services,” he added.

Brecon and Radnorshire AM Kirsty Williams said the council has benefited from a funding floor intended to reduce variation in funding awards to local authorities.

She said without the floor in place Powys’ settlement would have reduced by 1.3%.

The biggest rise awarded to any authority this year is 0.9%, with the no council facing a bigger reduction than 0.5%. That is in contrast to last year when Powys, with a 4% reduction, faced the biggest cut of any council in Wales and some authorities saw their funding increased by 1%.

Liberal Democrat Ms Williams said the floor was part of the agreement which saw her join the Labour cabinet as education secretary.

She said: "A funding floor was in the Welsh Liberal Democrat manifesto and was an important part of the agreement which led to me entering the Welsh government.

"Rural councils have lost out for too long, and this funding floor has stopped the situation where councils like Powys faced drastic cuts to its budget.

"While Conservatives slash council budgets in England, and watch helplessly from the side-lines in Wales, my actions in the Welsh Government have ensured Powys is better off than we would have otherwise been."