Budget 2020-2021

Newport City Council has confirmed its budget for 2020-21.

Following a full public consultation, a number of the original budget proposals were amended and further investment made as a direct result of public feedback. Read more about the investment and changes made.

You can read full details of the budget in the Cabinet and Council reports.


Budget simple costs funding chart

Newport City Council is planning for the next three years spending on the hundreds of services it delivers against a backdrop of ever-increasing demands.  

The draft settlement from Welsh Government has confirmed that Newport had the highest increase of any Welsh Council – the first time this has happened.

This will go some way in giving Newport the flexibility to invest in council priorities and to respond to the results of the public consultation.  

2020_2021 Budget challenge chart

This provides a financial benefit for next year only as there remains a budget shortfall of around £17 million in 2021/22 and 2022/23.

Budget council tax  simple chart

More than three-quarters (76 per cent) of the council’s budget is funded by a grant from the Welsh Government.

The balance is funded by council tax. For every one per cent cut in Welsh Government grant, council tax would have to increase by four per cent to maintain the same spending levels.

 

Increasing demands faced by the council include:

2018_09_005 adult social care increase

An ageing population, more dependent on care, requiring more complex and expensive support to help people stay in their own homes.

Care costs have risen from £33 million in 2015/16 to a forecasted £44 million this year.

Budget increase in children_2 Since 2015/16, an 85 per cent increase in the number of children being given care placements outside Newport and a 109 per cent increase in the number of children in independent fostering arrangements 
Budget additional pupils_ 1,046 more pupils than three years ago, 256 more pupils with additional learning needs and three more schools to run.

 

Like councils across the country, Newport has been dealing with the impact of austerity and tightening budgets for several years.

The council has taken significant steps so it can continue to provide frontline services while the city’s council tax payers have among the lowest bills in Wales.

Budget Piggy 41m 2019_12_009 Over the past five years, the council has saved a total  of £41 million.
2018_09_005 staff reduction  The council’s workforce has reduced by almost a quarter over the last five years

 

Despite this, it is likely that more savings will have to be made for the future. 

       Briefcase Budget £22m 2019_12_009      

It is estimated that the council will have to save at least £22 million over the next three years.

 

Our budget presentation provides more information on how the council spends its money and the challenges being faced.  

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