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Five per cent council tax increase confirmed

Created on 12/03/2018 @ 14:41
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Newtown residents will face a five per cent increase in council tax this year following a decision by the county council.
The extra five per cent will generate an additional £3.5 million to support key services and will cost the average band D payer an extra £56.63 for the year, according to the council.

Band D properties will now be charged £1189.20 Council Tax. The figure does not include town and community council and police precepts.

Newtown Town Council has already revealed its element of the council precept will increase by over 18 per cent this year. Dyfed Powys Police will also see its element rise by five per cent.
Cabinet Member for Finance, Councillor Aled Davies said: “Like all county councils in Wales we are facing increasing costs as a result of extra demand on services, at a time when resources are under greater pressure than ever.
“We are responsible for protecting the most vulnerable, and clearly some of our services have been found wanting recently. The additional revenue will be used to help support key services, particularly children and adult social services. We must look after the most vulnerable in society and restore confidence in those services.
“We know our schools are facing challenging financial times and our plans will provide an additional £1m to help them with inflationary pressures.  
“Powys along with nine other councils will see a cut in the funding it receives from Welsh Government in April. It takes a 2.4% increase in Powys Council Tax just to replace every percent cut from Welsh Government – who provide 70 per cent of our funding. Council tax payers in Powys fund the remaining 30 per cent, few local authorities in Wales have to self-fund to that level.
He added: “Our net budget this year will increase from £240 million to £247 million due to that essential investment. But, we face a £17 million shortfall for £2019/20 budget and the scale of action required in the next years to meet that challenge will drive huge change across the council.

"We simply cannot afford the council in its current form we will have to transform the way we deliver services. We will have to reconsider the delivery of non-statutory services and re-assess the level of statutory provision.

"That work has already started, we are looking at a range of scenarios to meet the challenge from Pembrokeshire style Council Tax increases to double digit reductions in funding for some services, difficult choices will have to be made.
“Our future plans will include capital investment throughout the county, it is important that we continue to renew core infrastructure such as schools and housing. Maintaining the capital programme is vital for the regeneration of the county’s economy as well as reducing the council’s running costs,” he added."

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