Annual budget 2023/24
The challenges being faced by residents, businesses and individuals will be at the forefront of the council’s considerations as it plans its 2023/24 budget.
Work is currently underway to plan how the most important services will be delivered with Newport City Council facing a budget gap of £33 million.
Protecting our essential services and supporting the most vulnerable is the priority, but even that will be challenging.
Cabinet (link) is due to consider proposals for the 2023/24 budget at its meeting in December before they go out for public consultation.
More than three-quarters of the council’s budget is funded by a grant from the Welsh Government. The money raised through council tax accounts for less than one quarter of the council’s budget, but it is recognised that this is a very substantial bill for residents, despite Newport maintaining one of the lowest rates in Wales for many years.
Draft details of how much the council will receive from Welsh Government for next year are expected in December 2022 and will be confirmed in the new year.
More information about the budget, the proposals and how you can have your say will be published here in due course.
Read our latest press release.
View a budget message from the Leader of the council.
Newport facts and figures
- Newport City Council’s net budget for 2022/23 was £343million
- The council is predicting a £33 million funding gap for 2023/24 (pending Welsh Government funding announcements later in the year)
- Two thirds of the council’s budget is spent on schools, education and social care.
- More than three-quarters of the council’s budget is funded by the 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.
- Newport council tax is currently the third lowest in Wales.
- Newport City Council has already implemented over £90m of savings since 2011due to several years of austerity and real-term budget cuts.
- The council provides over 800 services for 151,000 people living in more than 65,000 households. With the impact of Covid-19 and now the cost of living crisis on individuals, businesses, the economy, employment, and health, we are seeing the demand for support-based services continue to rise.
- Examples of the increasing costs and pressures being faced by the council include:
- Increased fuel and energy costs - gas is 300% higher, electricity is 150% higher. This affects everything from schools to streetlights.
- More demand for care - costs have risen from £43.5m in 2019/20 to a forecast £58m this year.
- Around 1,000 more pupils attending Newport schools in the last three years.
- Linked to the challenges of the pandemic, more emergency placements for children looked after. A forecast cost of £2.2m in 2022/23 compared to £300k in 2019/20.
- Inflation rates of around 10% are increasing the cost of all services and supplies bought by the council.
- Newport has a growing population. Of the Welsh local authorities, Newport saw the highest rate of population growth since 2011 (9.5%). This is higher than the population growth rates for both Wales and England. This growth is across all age groups.
- Newport also saw the highest increase in the number of households compared with 2011 (8.1%).