A Powys council member proposes using reserve funds to decrease the planned 8.9% council tax increase for residents.
Cllr Joy Jones said people are struggling now. She said many won’t get council tax reductions. The tax hike will hurt many residents severely. More people may face hardship because of it. People are hungry and need food, she said. The public can’t afford constant tax increases. She asked why they can’t use reserve money.
The reserves exist for emergencies, she noted. She thinks this situation is an emergency now.
The council holds £53.358 million in reserves. About £10.038 million is in a general fund. This is the estimate for the end of March. They expect total reserves to drop by March 2026. They project the general fund to rise at that time.
Cllr David Thomas fears using the reserves. He thinks it could lead to bankruptcy for them. He said the general fund is only £10 million. It is the third lowest in Wales, he stated. Removing the tax rise would use all reserves. He asked what they would do the next year. He suggested service cuts of £20 million. He worried the impact would be worse for people. He thinks it would lead to bankruptcy issues.
Council leader James Gibson-Watt spoke, too. He said times are difficult for everyone there. He wants lower taxes and more savings for them. It is an uncomfortable situation for the council now.
The council learned it would get more Welsh money. The government agreed to a 3.8% funding floor. In December, they expected a 3.2% rise only. That earlier rise totaled £7.7 million then. Jane Thomas said the gain brings £1.226 million. Councillors approved the 8.9% council tax rise. They also approved extra highway funds. Fee and charge increases also gained approval.