RESIDENTS in Newport are facing a council tax hike of 6.95 per cent after budget plans for the upcoming financial year were finalised.

The rise, equating to between an extra £1 and £1.33 a week, has been reduced from a previous proposal of 7.95 per cent, but remains one of the highest planned percentage increases in Wales.

Investments, including an extra £1.4-million for schools, have also been pledged after the authority received the largest increase in settlement from the Welsh Government, with a rise of 5.4 per cent.

Around £475,000 has been earmarked to support borrowing for regeneration projects, £210,000 into making the city centre more attractive – which includes city centre ‘cleansing’ and safety initiatives – and £292,000 into fostering.

At a cabinet meeting on Wednesday, council leader, Cllr Jane Mudd, said the authority had “listened to the public” in making the revised proposals following a consultation.

She said the increase would still leave Newport “amongst the lowest for council tax rates in Wales.”

“Our rates remain low overall and the increases allow us to invest in services,” she said.

But leader of the council’s Conservative group, Cllr Matthew Evans, voiced his shock at the proposed rise.

“It will be a massive kick in the teeth for residents,” he said.

“We had the largest settlement in Wales so I thought it would be an opportunity to significantly reduce the council tax increase.”

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Other investments agreed include an extra £100,000 for youth services and £80,000 to help bring empty properties back into use.

Initial plans to cut home to college transport have been scrapped, along with proposed cuts to Barnardo’s family support services.

Schools have been prioritised, with the extra £1.4-million on top of £9million already allocated from the council and Welsh Government.

An extra £90,000 will also be used to help schools with their financial and HR management.

Councillor Gail Giles, cabinet member for education and skills, said the investment showed the authority was “giving as much as we possibly can” to schools.

She said it was also for schools to “stick within their budget” in the upcoming year.

Money has also been invested to protect the “financial integrity of the authority for the future”, with the council stopping its reliance on reserves to balance the budget.

Councillor Ray Truman said it had been a “difficult budget.”

“We have to make horrendous savings to balance the budget,” he said.

“If the governments want us to deliver the services, they have to give us the money to deliver them.

“We have got absolutely no pleasure at all in doing this.”

Other budget proposals which remain include introducing black bag sorting at the Docks Way tip to improve recycling and a reduction in hardship funding the council provides to Gwent Music Service.

The final budget plans will now go before a full council meeting on Thursday, February 27.