Powys County Council Leader, Cllr Jake Berriman, has called for a change to the way local government funding is allocated in Wales, saying the current formula must better recognise the additional costs of delivering services in large rural counties.
Following a BBC Radio Wales interview on the financial pressures facing councils, Cllr Berriman said Powys faces many of the same challenges as other local authorities, including inflation, pay pressures, rising demand for social care and additional learning needs, but that these pressures are sharpened by the county’s geography and demography.
Powys is Wales’ largest county, with communities spread across a wide area, an ageing population, a smaller working-age population and one of the largest local road networks in the country. These factors mean services such as social care, education, waste collection, transport and highways cost more to deliver than in more densely populated areas.
Cllr Jake Berriman, Leader of Powys County Council, said: “Powys faces the same national pressures as councils across Wales, but rurality makes those pressures more acute. Our services are spread much more thinly, our staff often have to travel further between visits, and we have more roads and infrastructure to maintain across a relatively small population.
“That is why we have been arguing for some time that the funding formula needs to be looked at again, with a readjustment in favour of rural areas. If Wales is serious about fair and sustainable local services, the formula must properly reflect the real cost of delivering those services in places like Powys.
“We set a balanced budget this year and we will continue to manage our finances carefully, but it is future years where the gap is widening. Through our Sustainable Powys approach, we are changing how we work, using technology and focusing on prevention, all of which supports our ambition to build a Stronger, Fairer, Greener Powys. But fair funding will be essential if councils are to protect the services residents rely on.”
The council’s Medium-Term Financial Strategy identifies a £9.708 million funding shortfall in 2027/28 and a cumulative shortfall of £28.777 million to 2030/31. Powys has already delivered around £146 million of savings over the previous fourteen years, with a further £12 million of savings built into the 2026/27 budget.
Cllr Berriman said the council would continue to work with Welsh Government, the Welsh Local Government Association and other councils to highlight the additional costs of rural service delivery and seek fair, sustainable funding arrangements for local services.
