A total of £12.7 million, over and above inflation, is to be invested in range of services including highways infrastructure, schools, the safeguarding hub which supports families in crisis, homelessness and the extra demand being faced by social services.
Councillor Jane Mudd, leader of the council, said: “The cabinet carefully considered the responses to the public consultation as it set a budget which balanced increasing funding for the highest priorities and making necessary savings.
“Deciding on a council tax increase is one of the hardest things we have to do as we know many people are impacted by the continuing cost-of-living crisis.
“But the council is also having to deal with a challenging financial situation with increasing costs and growing demands for services. The money we receive from Welsh government and other sources is not enough to cover the funding gap.
“Residents in Newport will still be paying one of the lowest council tax rates in Wales and the UK and the council tax reduction scheme will also help those on low incomes who are eligible for support.
“The funding increases and our decisions on budget investments will ensure the most vulnerable residents are supported while boosting funding for areas that matter to residents, such as schools and highways.”
Following the approval by full council, council tax will increase by 8.5 per cent. This represents a rise of £1.75 to £2.26 per week for those houses in Newport’s most common bandings.
More than £31 million is included for budget investments and pressures, including inflation. Of this nearly £10 million is going into school budgets and £12 million to homeless services, social care and additional needs to meet ever increasing demands in these areas.
