Council faces £33m budget crisis

The council said it would decide what action to take

A council claims it is facing a deficit of £33m over the next five years, which will put its services under mounting pressure.

Powys council said it was reacting to a "massive reduction in public sector spending", and would decide what action to take in the coming months.

Officials said in January up to 400 jobs could go at the authority as part of a cost-saving plan.

The assembly government said it wanted public bodies to identify savings.

It added that these were "challenging economic and financial times for the public sector, businesses and citizens alike".

The council has spoken out about its financial difficulties previously, and it has made several unpopular and controversial cost-cutting decisions.

We will have to spend a considerable time looking at the services we deliver, what our priorities are and what areas can be delivered differently or if necessary not at all Board chairman Michael Jones

Last year the authority turned off thousands of its street lights to save money, but following a review many were switched back on.

At a special session of the council's board, councillors were briefed about the latest financial position.

Board chairman Michael Jones said: "Powys like other councils in Wales cannot escape the impact of a massive reduction in public sector spending as the government responds to the economic slowdown.

"The council will be faced with a very difficult task of balancing available budgets against increasing service pressures. The scale of the task means that the council has no alternative but to examine all available options.

"It is too early to say what actions can and will be taken, we will have to spend a considerable time looking at the services we deliver, what our priorities are and what areas can be delivered differently or if necessary not at all."

Mr Jones said the council would work with communities and its partners to identify priorities, but "it is inevitable that some of our decisions will not be popular and cause some concern among the public", he added.

The council will start public consultation and possible options will be available later in the year.

A Welsh Assembly Government spokeswoman said Powys Council had received £177.9m in core funding in 2009-10 to support local services.

"This is equivalent to £1,348 for every man, woman and child living in the area and represents a 1.5% increase on last year's settlement," said the spokeswoman.

She added there were already examples of good practice in Wales where local authorities had reviewed services and cut back on "unnecessary bureaucracy".

"We want all public sector bodies to identify ways in which they can deliver efficiency savings which will safeguard frontline services for their citizens," said the spokeswoman.

Councillors approved a 2.99% increase in council tax in January, and accepted a package of measures designed to save £13m over three years.

The authority has received a 1.5% cash increase from the Welsh Assembly Government, but it was below the Welsh average of 2.9%.