Local authorities from across Wales are banding together in a bid to get more money out of the Welsh Government, a council leader has said.

The move has been revealed by Powys council leader, Liberal Democrat, Cllr James Gibson-Watt as he responded to a number of questions from the leaders of the Powys Independents opposition group, Cllrs Beverley Baynham and Ange Williams.

This follows the Welsh Government’s announcement earlier this month that Powys County Council is set to receive a 3.2 per cent 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 per cent and puts Powys 21 out of 22 local authorities in Wales and could see the council raise council tax to cover the shortfall.

Cllrs Baynham and Williams, in their letter to Cllr Gibson-Watt, want him to put pressure on the Welsh Liberal Democrat leader, and Mid and West Wales Senedd Member Jane Dodds not to support the Welsh Government budget, unless more funding is found for Powys council.

They also ask Cllr Gibson-Watt to explain how the Liberal Democrat-led cabinet had been lobbying Welsh Government minsters for a “fairer” settlement.

They also want him to condemn the highest settlements in Wales, which saw Cardiff council receive a 5.3 per cent funding increase and Newport a 5.6 per cent increase.

Cllr Gibson-Watt said: “Lobbying is done mainly through the WLGA (Welsh Local Government Association) rather than at individual authority level.

“As extreme financial pressure is being experienced by all local authorities in Wales, with the causes being more or less identical in each council area.

“However, in meetings with ministers over the past week I have stressed to them the scale of the problems this and all other councils face and the very adverse consequences for the Welsh Government’s wider agenda that these pressures are potentially creating, given how important local government is to the delivery of Welsh Government’s aspirations.

“In addition, the WLGA is lobbying Welsh Government on the need for a funding ‘floor’ at a level that, if agreed, would significantly improve the settlement for Powys and a number of other local authorities in Wales.”

Cllr Gibson-Watt said it would it not be appropriate for him to tell Ms Dodds what position she should take in future on the Welsh Government budget.

He believed Ms Dodds was “well aware” of the need to improve the funding settlements for Powys and the other councils in Mid and West Wales.

Cllr Gibson-Watt said: “The problem does not lie with the Welsh Government’s attitude to rural Wales, but in the size of the quantum of money available for distribution to local government through the revenue support grant system and the formula that is used to determine that distribution to each local authority.”