Final chance for say on fee hikes and service cuts in council budget

Cardiff residents have just under a week left to give their views on the council’s new budget plans.

Cardiff Council is proposing a number of cost-saving measures including increasing council tax, the cost of parking permits and burial charges for the upcoming financial year.

The city council is facing a £23m shortfall for 2025/26 but this is a significant reduction on the initial £60m shortfall following a settlement from the Welsh Government.

The local authority is asking residents to respond to a consultation which closes in less than a week on February 5.

The budget gap will be funded through ‘back-office reductions’, adoptions of new technology and offering voluntary severance to save around £11.5m.

The remaining £11.9m will come from further efficiency savings and previously mentioned service changes - including parking permits and burial charges - along with council tax increases and the use of earmarked reserves.

Cardiff Council leader, Cllr Huw Thomas, said: "Both the UK Government and the Welsh Government, in setting their budgets this year, have demonstrated their support for public services. The proposed settlement is, excepting the pandemic period, the most generous funding settlement Cardiff Council has received since 2010.

"As we have always done, the savings proposals we are putting forward prioritise support for the most vulnerable, protect frontline services, and ensure fair funding for education and social services. In fact, as part of this consultation, we are proposing a net increase to schools, children's services and adult services. In line with our commitment to prioritise education in Cardiff, there will be no savings targets for our schools.”

What will the budget be spent on?

Education and social care account for 70% of the council’s budget and remain a key focus for the next financial year.

The council is proposing an additional £19.8 m for schools, £8.8 m more for central education services, £7.5 m more for children's services and £12.1m more for adult services.

Cllr Chris Weaver, cabinet member for finance, modernisation and performance, said: "In recent years, the cost of providing these essential services has risen significantly.

"To address these challenges, since 2022, we've opened or expanded 10 schools, built 900 new council homes with plans for 1,900 more, and helped residents access over £52 m in benefits. We've also worked to regenerate parts of the city and invested in local hubs and libraries where people can come for help and advice.

"We want to continue this important work, so it's crucial that the public take part in the debate and the consultation."

Council tax increase

While the council has disclosed it is proposing an increase in council tax the actual figures have not been released. It has noted, however, that each 1% rise generates about £1.9 m.

Last March, the council voted through a 6% increase in council tax.

Other proposed fee increases include residential parking permits rising to £35 for the first and £120 for the second, burial services increasing by £100 to £1,140, and cremation services by £40 to £910.

Cllr Weaver added: "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.

“Additionally, Cardiff's ageing population means more people require our support each year, including those needing dementia services. We are also seeing a rise in the number of children with Additional Learning Needs who need specialist support. These are vitally important services, and we have to do our best to ensure people get the help they need and deserve.”

The 2025/26 budget proposals will be considered by full council on February 12.