Councillors considered a report detailing the current financial situation, steps being taken to address the anticipated budget shortfall and the first of the proposals which are now out for public consultation.
Residents can view the full report and submit their comments on the first two proposals at www.newport.gov.uk/budget
The first phase of the consultation will run until Sunday 15 December.
Cabinet and full council considered the future financial position in February 2024 when it was estimated the gap for 2025/26 could be as much as £20 million.
The UK Autumn Statement, announced late October, confirmed additional funding for Wales. However, the impact on Newport and our full financial position will not be known until we have details of the Welsh Government grant settlement which is expected in December.
A further report and additional savings proposals will be considered by cabinet in January 2025 when there is more certainty around Newport’s full financial position.
A second round of public consultation will be launched following that meeting.
Councillor Dimitri Batrouni, leader of the council, said: “Residents will have seen in the news the challenges that councils across Wales and the UK are facing as they consider their budgets for 2025/26, and Newport is no different.
“The main focus for us is how we can modernise services and be more efficient. Across the board we are looking at opportunities through collaboration, income generation and use of the latest technical solutions. One such proposal is a council-wide review to identify where automation could allow us to deliver services more effectively.
“We have experienced many years of challenging budgets coupled with increasing demands for service and rising delivery costs, but I am very keen that we not only think about short-term savings, but concentrate on innovation that will put us in a good place long-term.
“The Chancellor announced that the Welsh Government will receive a £1.7 billion top-up on its settlement in 2025/26, bringing it to £21 billion in total – the largest in real terms in the history of devolution.
“We want to work closely with Welsh Government to reduce the financial stress the council is experiencing. Our commitment is to feed that back into the services our community rely on.”
For more information about the council’s budget and how we spend our money visit www.newport.gov.uk/budget
Where the council gets its money
More than three-quarters of the council’s budget is funded by a grant from the Welsh Government. Draft details of how much the council will receive for the coming financial year are expected to be received in December and will be confirmed in the new year.
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.
