Extra cash for Powys, but is it enough?

Politicians and councillors today welcomed news that the Welsh Government has committed an extra £1.9m to Powys County Council in the coming financial year.

But will the increase make a massive difference to the £27m black hole the county council keeps telling everyone it is going to have to save over the next three years.

Today, finance minister Jane Hutt AM confirmed the additional funding to Powys after the council was left with the lowest funding settlement in Wales with a 4.1 per cent cut in funding.

Leader of Powys County Council, Councillor Barry Thomas said: “I am very pleased at today’s announcement of additional funding for Powys, the county had received the lowest settlement in the Wales with a 4.1 per cent cut in funding. The additional funding will help a great deal but will not solve all of our problems, and we still face very challenging savings targets over the next 3 or 4 years.

“I am very grateful to all of the Mid and West Wales Assembly Members for their support on this issue and in particular the work of the Welsh Liberal Democratic Leader Kirsty Williams for her involvement and she has been instrumental in bringing about this additional funding.”

Cabinet Member for Finance, Councillor Wynne Jones said: “As a result of the additional funding we at last now know the level of cuts facing the council and we are now able to take forward budget proposals to the cabinet on February 18. The proposals will include savings of £29.7m over a three year period to produce a balanced budget.

“The Welsh Government’s funding announcement will provide an additional £1.9m in the coming year and will mean that a number of very difficult proposals can be withdrawn.

“We will be taking forward a proposal that we no longer pursue plans to introduce transport charges for post-16 learners or take forward plans for further rural transport funding reductions and plans to move to a four-weekly collection of residual waste.

“Plans to make further cuts to rural bus services will also not be taken forward in the three year plan and the proposed cut in grant funding for Tourist Information Services has also been dropped from the 2016/17 budget, although there will be a 15 per cent cut in those grants.

“I am delighted to say that that the proposal will also include the provision of an extra £1.2m for the schools delegated budget and an additional £1.05m for adult social services. Powys still faces a very difficult financial period but the Welsh Government’s recognition that it needs additional support is most welcome.”

The council will consider its annual budget on February 25 and set the level of council tax for the coming financial year on March 9.

Welcoming the news, Jane Dodds, the Liberal Democrat's candidate for Montgomeryshire in May's Assembly elections, said she was pleased her party leader, Kirsty Williams had been involved in discussions with the finance minister to solve the issue: “While today’s announcement is welcome, the Welsh Liberal Democrats believe there needs to be a complete review of the funding formula to deliver a fairer deal for rural areas.”

Meanwhile, Montgomeryshire AM, Russell George, said: “For many rural communities today’s announcement of extra funding will be seen as too little, too late and it’s clear that rural councils are getting a raw deal”
 
“Since 2012/13, rural Powys has seen a cut of minus - 7.86%, whilst urban councils like Newport have had an increase of +7.07% with Cardiff having an increase of + 3.16%”