Cardiff residents are being urged to participate in a pivotal budget consultation that will influence the future of essential council services across the city. Following a more favourable financial settlement from the Welsh Government, Cardiff Council’s initially projected £60 million budget gap for 2025/26 has been significantly reduced to £23.4 million.
Despite this improvement, challenges such as inflation and increasing demand for services continue to escalate the costs of delivering vital services, including education, social care, and addressing the housing emergency. To bridge the £23.4 million shortfall, the council proposes a blend of efficiency savings, service adjustments, increased fees and charges, and a rise in council tax.
The public consultation on these proposals is scheduled to open on Thursday, January 9, 2025, and will remain open until midnight on Sunday, February 9, 2025. During this period, residents will have the opportunity to express their views on potential service changes and funding priorities.
Key budget proposals include:
- Enhanced Investment in Education and Social Services:
- An additional £19.8 million was allocated to schools, ensuring no savings targets for schools in 2025/26.
- An increase of £8.8 million for central education services.
- An additional £7.5 million for children’s services.
- A further £12.1 million for adult services.
- Efficiency Savings:
- Implementation of significant back-office reductions and the adoption of new technology to reduce costs.
- Managed reduction in staff numbers through voluntary severance.
- Total efficiency savings are expected to amount to £11.5 million.
- Council Tax Increase:
- Council Tax currently constitutes approximately 26% of the Council’s budget, with each 1% increase generating around £1.9 million.
- While a specific figure for the council tax increase has not been set, any additional revenue from this source would help offset the remaining balance.
- Addressing the Residual Balance of £11.9 million:
- This will be managed through further efficiencies, service changes, increased fees (including Council Tax), and utilizing other funding sources such as earmarked reserves.
The consultation will seek residents’ opinions on proposals directly affecting services, including:
- Parking Charges: Proposed increase in residential parking permits from £30 to £35 for the first permit and from £80 to £120 for the second permit.
- Burials and Cremations: Suggested increase in burial service fees by £100 to £1,140 and cremation services by £40 to £910. The cost of purchasing a grave may rise by £65 to £1,295.
- School Meals: Potential increase in the cost of secondary school meals by 10p to 20p, resulting in new prices ranging from £3.50 to £3.60, aiming to reduce the council’s ongoing subsidy for school meals.
- Adult Education Courses: Proposed fee increases to cover operational costs without requiring a £220,000 annual subsidy.
These proposals are currently under consultation and have not been finalized for implementation in 2025. Final decisions will be made after reviewing consultation feedback and further council deliberations.
Council Leader, Cllr Huw Thomas, stated:
“Both the UK Government and the Welsh Government, in setting their budgets this year, have demonstrated their support for public services. The proposed settlement is, excepting the pandemic period, the most generous funding settlement Cardiff Council has received since 2010. Compared with our estimates from earlier this year, our budget gap has been reduced by nearly £36 million. Nevertheless, after over a decade of austerity and with growth in demand higher than growth in funding, public services cannot be rebuilt overnight, and we are still left with a £23.4 million shortfall that must be addressed to balance the budget. This will require savings and efficiencies, increased charges for some services and changes to how we do things. As we have always done, the savings proposals we are putting forward prioritise support for the most vulnerable, protect frontline services, and continue to invest in the future of our city.”
Residents are encouraged to participate in the consultation process to ensure their perspectives are considered in shaping the city’s budget and the future of its services.
