Powys County Council has warned of a council tax rise and changes to services on the horizon following a below-average funding settlement from the Welsh Government.

This week, Cabinet Secretary for Housing and Local Government, Jane Bryant, issued a statement providing details of the provisional Local Government Settlement in Wales for 2025/2026.

The average rise throughout Wales is set to be 4.3 per cent but Powys is set to receive 3.2 per cent, which equates to £7.770 million more, but puts them near the bottom of the Welsh funding league table, 21st of 22 local authorities.

This means that the Welsh Government grant to the council will rise to £250.184 million, up from £242.414 million.

Powys has been joined by other councils like Gwynedd (3.2 per cent) and Monmouthshire (2.8 per cent) at the bottom of the funding pile while councils for urban areas like Cardiff (5.3 per cent) and Newport (5.6 per cent) have benefited the most out of the increased government funding.

Powys County Council says the increase is insufficient in meeting current pressures and "difficult decisions" will need to be made to deliver a balanced budget.

Cllr David Thomas, Cabinet Member for Finance, said: “Although we have seen an increase in our local government provisional settlement from the Welsh Government, the reality is that there is still a funding shortfall that we will need to address to ensure we deliver a balanced budget.

“It is clear that the money available to spend on public services really is becoming ever-more restricted and this will dominate the way we deliver services for many years to come.

“The council is facing some difficult decisions as we look to deliver a balanced budget which could see changes to the way we deliver council services as well as an increase in council tax.”