Powys residents are facing a 13.5 per cent increase in council tax next year after the county council said it is “facing extraordinary financial pressures” with projections showing a £13.5million budget gap next year.

Despite a 3.2 per cent increase in Welsh Government funding announced last week - among the lowest in Wales - the council is facing a £13.5million shortfall in its budget.

The council said that this means a 13.5 per cent increase in council tax “will be needed to ensure the council can deliver critical public services.”

Powys council leader, Cllr James Gibson-Watt, said: “Although we have seen an increase in our local government provisional settlement from the Welsh Government, the reality is that it is not enough to bridge the gap in our increasing costs.

“A combination of increasing demand for services, particularly in social care, price inflation, provider costs and national pay awards, mean that the council is facing some difficult decisions as it looks to deliver a balanced budget for 2025-26 which is a legal requirement.

“The council is working hard to develop a budget strategy that protects important services like social care, waste collections, schools and homelessness.

“We know that the people of Powys like the county council have been facing severe financial conditions for a number of years.

“That’s why we will only increase council tax to meet the costs of running council services.

“We know this is difficult and we will do all we can to mitigate the impacts and protect vital public services.

“It is clear that closing the budget gap through an increase in council tax alone is not possible so we will have to take some difficult and potentially unpopular decisions to deliver a balanced budget – something we are legally obliged to do,” he added.