Powys County Council has been left in a financial crisis after councillors rejected a budget that would have seen a 9.5 per cent Council Tax increase.
Powys county councillors have rejected plans to raise the Council Tax and cut services of nearly £12 million, with just one vote in it.
Councillors came together to discuss the most controversial budget Powys has had for many years.
At the meeting yesterday councillors of all colours lined up to have their say, roundly criticising the Cabinet in the process and the various cuts that had been outlined in the 1,036-page document.
In total there were seven elements of the budget to be voted through, but after three defeats, on the Medium Term Financial Strategy, Revenue Budget and a rise to Fees and Charges, it was obvious that the jig was up.
Two were lost by one vote and one on the chairman’s, Cllr David Meredith’s vote.
All elements were supposed to be voted upon individually.
Cllr Gary Price asked if there would be a vote on item five, the 9.5 per cent council tax rise?
Deputy chief executive, David Powell, the s151 officer, said that it was pointless.
“The revenue budget has been voted down and under the construct that contains the council tax level flow from that, therefore there’s no point in proceeding,” said Mr Powell.
Following the vote, Liberal Democrat and Green group leader, Cllr James Gibson-Watt, said: “In these circumstances, we can’t proceed to decide the Council Tax.
“It’s quite clear that the cabinet budget does not enjoy the confidence of council.
“My suggestion is that we convene a meeting of group leaders shortly and now go home and reflect. We need to consider very carefully on how to proceed.”
The council will now come back to look at the budget again on Thursday, March 7.
Earlier, finance portfolio holder, Cllr Aled Davies, had made one last bid for support pointing out the good in the budget.
Cllr Davies said: “We are putting £1 million into the schools delegated budget, £25 million has been spent last year on the capital programme, opening five new schools with four more under construction and design stage.
“We are spending £2.4 million on school improvements, providing over 8,000 school meals a day, we are doing a huge amount every day that’s not always seen.
“I could go on on the huge amount of work the council does, of course, we have to respond to the challenges, it’s a difficult budget.
“We have probably the most important vote of the year, we must provide a balanced budget and this is a balanced budget.”
Deputy chief executive, David Powell, and acting chief executive, Mohammed Mehmet, had also stressed the need to produce a balanced budget throughout the day.
Both will now leave the employment of Powys Council, and incoming chief executive Dr Caroline Turner will be taking over on Monday and will have to address the crisis.
By Elgan Hearn, Local Democracy Reporter, Local Democracy Reporting Service
