No extra funding to deal with the costs of lost income and the stress on services caused by the Covid-19 pandemic can be expected in the next financial year, councillors were told.
At a meeting of Powys County Council’s Finance Panel on Thursday, January 20, councillors went through next year’s budget proposals page by page.
The draft budget agreed by the Independent/Conservative cabinet includes a 3.9 per cent rise in the Council Tax.
The Welsh Government have provisionally said they would give Powys an extra £18.3 million for 2022/23 .
This takes their funding to Powys up to £210.2 million from £192.8million.
The funding from Cardiff relies on a complicated formula that considers a number of indices including population figures, how many children receive free school meals as well as how many adults are in work or claiming benefits.
Finance Panel chairman, Cllr John Morris said: “It reads to me that one of the reasons we’ve had a better settlement this year is that pupil numbers both in primary and secondary school claiming free school meals went up by around 10 and 12 per cent.
“Also, unemployment claimants went up by 76 per cent, we rank the highest (in Wales) and that’s not the best position to be in.
“Are they the main drivers for the increase.”
Ms Thomas said: “No.”
She believed the reason behind the increase was to do with funding that covered the costs of the pandemic being included in the settlement, rather than being a standalone fund.
Ms Thomas explained: “In terms of Covid-19 costs, up until March 31 that has been met through a separate Welsh Government fund known as the Hardship Fund.
“But from April 1 the council is expected to meet any continuing costs of the pandemic itself through its own budget.
“With regard to the additional settlement that we’ve received, it’s clear from the Welsh Government advice there is additional funding included for us to manage that.”
She believed that this change in how funding to combat Covid-19 is shared out is a “key risk” for the budget due to the “unknown” nature of the pandemic.
Finance portfolio holder, Cllr Aled Davies told the committee that unemployment levels in Powys had been at “low”, and the figures also depended on when it “had been collected.”
He also believed that the change to a cashless payment system in Powys schools had revealed the number of children in need of free school meals.
Cllr Davies said: “It reflects the economy, and the little bit of uncertainty at that moment in time.
“I know unemployment figures are at their lowest on a UK level and job vacancies are extremely high including in Powys.
“It might change again next year, and we’ll see how things settle down.”
The report explains that over the last couple of years the council has claimed just under £25 million from the Hardship Fund for costs incurred and lost income to the pandemic.
Hundreds of businesses receive rate relief support
