Cardiff Council approves budget “for frontline services”
Cardiff Council has approved its final budget plans which include council tax increases and 60 job cuts.
The Labour-run local authority gave the green light to its final proposals to save £27.7m in 2025/26 at a full council meeting on March 6.
This follows a public consultation earlier this year.
Part of the saving measures include a council tax increase of 4.95% - around £1.40 a week for a Band D household – to raise £9.4m.
Council jobs would also be lost through vacancies not being replaced and voluntary redundancy, with management roles alone saving £800,000.
Schools, Adult Services and children’s services will receive additional funding.
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Cardiff Council was initially looking at a budget gap of more than £60m – this was reduced thanks to Welsh Government funding.
There is, however, still a gap of £27.7m which is due to “inflation, demand pressures, expected pay increases for teachers, social workers, and other public sector employees”, according to Cardiff Council.
Along with council tax increases and job cuts, the local authority is suggested to close that gap through the following:
⦁ An increase in residential parking charges for second and visitor permits from £80 to £90
⦁ A 9.6% increase in the cost of the burial service, from £1,040 to £1,140
⦁ A 4.6% increase in the cost of the cremation service, from £870 to £910
⦁ A 15p increase in the cost of secondary school meals, from £3.40 to £3.55
The council has made some changes to its plans following a public consultation, with residential parking charges for second and visitor permits being reduced from £120 to £90 and surcharges for burials and cremations at weekends and Bank Holiday dropped altoghether.
Cardiff Council’s cabinet member for finance, modernisation and performance, Cllr Chris Weaver, said: “Demand for council services is increasing due to several factors.
“The cost-of-living crisis has led to more people presenting as homeless in the city, from families who can no longer afford rents or mortgages to single individuals facing similar challenges,” adding that ageing population and children with additional learning needs require extra support.
Labour Cllr Weaver continued: “These are vitally important services, and we have to do our best to ensure people get the help they need and deserve.”
Council tax rise “hitting old and young”
The council’s Conservative and Liberal Democrats groups made their own proposals and commented on Labour’s plans.
On Labour’s budget, Cllr John Lancaster, leader of the Conservative Group said: “The aim of these efficiency savings is that we can pass these savings back on to the council tax payer. Yet what do we have here - an inflation busting rise of nearly 5% hitting old and young, rich and poor, families and individuals.
He added that the Conservative’s amendments would find “further savings” in back office roles there and “go further temporarily”.
Cllr Rodney Berman, leader of the Liberal Democrat group suggested that Labour’s budget could go “a bit further” in areas such as bus services, youth services and schools.
He criticised what he considered to be a focus on “shiny and new” regeneration projects such as the council’s new county hall and Churchill Way’s canal and said: “There is a growing concern that this council has been concentrating on some of the larger regeneration projects but it’s doing that at a time when existing infrastructure is falling apart.
“Just look at the way our roads are increasingly crumbling, our pavements are falling apart and not being addressed.”
He continued: “A lot of people would thank us if we took that slightly changed approach.”
A budget for “frontline services”
Plaid Cymru Cllr Andrea Gibson stated her party members would not be voting for the Labour budget or Lib Dem and Conservative amendments despite all having “merit”.
On Labour’s budget, Cllr Gibson said: “We cannot support such a large increase in council tax even though you say it’s the lowest across Wales,” adding that Cardiff residents are “already feeling the pressure of increased costs” such as water bill increases and the end of winter fuel payments.
She questioned “how much more can the ordinary person be asked to pay out?” despite the council having “difficult decisions” to make.
Labour’s Cllr Weaver said: “This is a budget for our frontline services, a budget which underpins our ambitious corporate plan and a budget for the future of this city.”
He added that the UK Government’s budget, which affected the spend in the Welsh Government alleviated some pressures - reducing the shortfall by £40m and making the budget a “much more manageable goal”.
Cllr Weaver continued to explain that the savings came from reserves, “largest way we closed gap” - efficiency savings, “minimum and moderate service changes” and then because “Savings alone not enough to bridge a gap of that size so finally we have council tax.”
He stated that the increase - of £1.40 a week was “one of the lowest increases in Wales this year” but added that the gains would be “crucial” in protecting hubs and libraries, youth services, parks, waste management
Labour’s budget passed with 50 votes, with ten voting against and ten abstaining.
