Annual budget 2024/25

Newport City Council has considered its budget and set out a number of proposals for delivering services in 2024/25.

A public consultation will now run until 9 February 2024.

Proposals include an 8.5 per cent council tax increase which for the majority of Newport households would mean an increase of between £1.50 and £2.01 per week.

Areas of additional investment include social care, homeless provision and schools.

The demand for social care for both adults and children continues to rise, so £3million is proposed to help manage that demand and provide support for some of our most vulnerable residents.

Likewise, homelessness and the demand for temporary accommodation continues to rise, so an extra £600,000 has been proposed to support the service.

Both of these areas are being considered as part of the council’s transformation programme which aims to change the way we do things for the benefit of residents. These investments will help provide the vital services while the work is completed to reshape them for the long term.

The budget also recognises the pressure on schools and has prioritised significant funds for staff pay, increasing demand resulting from rising pupil numbers, and for support for those with additional learning needs.

All representations will be considered ahead of the February cabinet meeting when they will make their final recommendations on the overall budget for 2024/25. 

Read our latest press release

Read the full report and a summary of savings and investments (Item 4).

Read the fairness, equality and impact assessments for the proposals.

Have your say on the 2024/5 budget

Facts and figures 

The council provides over 800 services for approximately 160,000 people living in more than 65,000 households. 

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. 

For every one per cent the council tax is increased by, an additional £710,000 is raised. 

Two thirds of the council’s budget is spent on schools, education and social care. 

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%). 

Key issues affecting the budget include: 

• Increasing inflationary costs – although inflation rates have recently fallen, they are still high by historical levels. This affects the cost of delivering all services.

• Cost-of-living crisis – the impact of the cost-of-living crisis on our residents has led to more requests for government support and increased demand for local services. 

• Labour market – labour shortages are increasing the cost of commissioned services in areas such as social care and technical/professional roles. 

• Increasing demand for council services – the impact of the Covid pandemic as well as population and societal changes have resulted in a increased demand for services, there for increasing delivery costs.  These are most notable in the areas of social services and housing.