By Elgan Hearn, Local Democracy Reporter
Labour’s cabinet members at Powys County Council have reached out to their Welsh Government colleagues to ask for more money, after being landed in an embarrassing situation.
Labour are the junior partners in the Liberal Democrat-led minority administration at county hall and hold three of the 10 cabinet roles.
Last Wednesday, December 11, Powys County Council found out that it is set to receive just a 3.2% rise in funding for 2025/2026 from the Labour Welsh Government which equates to £7.7million.
This is less than the average funding rise of 4.3% for Wales and puts Powys 21 out of 22 local authorities in Wales.
It has led to yesterday Powys declaring that council tax may have to rise by an eye-popping 13.5% as a result.
The funding announcement has been criticised by opposition councillors who have even asked the leader of the Welsh Liberal Democrats and Senedd Member for Mid and West Wales not to vote in favour of the Welsh Government budget.
Deputy council leader, Cllr Matthew Dorrance, along with his cabinet colleagues Cllr David Thomas the cabinet member for Finance and Cllr Sandra Davies the cabinet member for Future Generations have now written to First Minister Eluned Morgan, along with cabinet secretary for housing and local government Jane Bryant and Deputy First Minister Huw Irranca-Davies highlighting their concerns.
The three said: “Whilst we welcome the Welsh Government’s commitment to public services in Wales and the additional funding for local government, we are concerned that the cost of rurality is not adequately reflected within the funding formula or the provisional settlement.
“We know through Powys County Council’s rural cost analysis that delivery of essential public services in rural Wales costs more.
“Despite our best efforts to transform, costs for rural delivery continue to grow. Therefore, we are asking that consideration be given to a rural premium, paid outside of the funding formula, to help meet those costs and help secure the delivery of services in rural Wales.
“We would welcome the opportunity to explore the establishment of a rural premium with you further.”
Written last year, the rural cost analysis which accompanies the letter explains the challenges of delivering services across a vast rural county.
The analysis says that Powys has a higher-than-average older population than Wales and the UK which is predicted to increase at a faster rate and many will require social care and health support.
The document points out that Powys up to 2023 had already made cuts and savings worth more than £108 million over the previous decade.
The council also point out that a greater burden is put on its residents than people living in other parts of Wales, with around 30% of its annual funding coming from Council Tax.
The Welsh Government have been asked for a comment.