NEWPORT Council passed a 2.9 per cent council tax increase yesterday as the budget was approved by a majority vote.

The council needed to make almost £11 million worth of cuts in order to balance its budget for 2012/13 and yesterday the budget was agreed at £237.26 million.

Earlier this month cabinet members decided against cutting funding to Gwent Music Support Service and the storage of the Newport Festival Clock, but to reduce the £10,000 twinning budget by £2,000.

The social services department faces £2.2million less cash than last year, with the street scene and regeneration departments also facing cuts, while school funding will increase from £78million to £79.7million.

The council tax increase will see Band D residents paying £825.98 a year, £23.29 more than last year's bill of £802.69.

Council leader Cllr Matthew Evans said: "Newport, like other authorities across the UK, is facing challenging economic conditions and while having to make significant savings, this year in the region of £12m, we still need to continue to deliver services which are seeing an increasing demand on them.

"Setting the budget gets harder and harder every year especially as we faced a cut to our funding from the Welsh Government. However, we are confident that we have reached a robust position and will deliver a balanced budget that will provide residents with the services that they need."

Labour leader Cllr Bob Bright told the meeting that his group could not support the budget, as it "lacked fairness."

He said the current administration has put the council in "substantial debt" in borrowing money and had "given away the family silver" in Tredegar House.

He said: "Of course we understand these are difficult times. However, my group believes this budget lacks fairness and we fundamentally disagree with its priorities."

Labour councillors abstained from the vote, but the motion to approve the budget was passed 26 votes to the 19 abstentions.