COUNCIL tax could increase by five per cent in Newport, while new car parking charges could also be introduced under budget proposals drawn up by the city council.

The proposed council tax rise equates to an increase of £59.89 per year on a band D property, while for bands A-C it would be a rise of between £39.93 and £53.24.

Savings or income raising measures of around £3.3 million are also proposed, including introducing parking charges at Glebelands Park, Christchurch viewpoint, and Morgans Pond off Bettws Lane.

A new pay and display car park is also planned at Mill Parade, opposite the Newport Transporter Bridge visitor centre.

The council is also proposing the closure of Cambridge House children’s home in Stow Hill, with the building said to be in a “poor condition”.

And charges for non-household waste items taken to the tip - such as plasterboard and tyres - could also be introduced.

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Investments of around £8m are also proposed, including £1.8m in schools, £1.5m in social care, and £300,000 for 'digital aspirations' and a new household waste recycling centre.

The proposals have been drawn up with the council facing a shortfall of about £5m to fund services next year, despite a 5.6 per cent increase in funding in the draft settlement from Welsh Government, which was the largest in Wales.

Savings of nearly £10m will also have to be found over the next three years, which comes on top of £35m of cuts over the previous five years.

Council leader, councillor Jane Mudd, said the proposed increase in funding from Welsh Government was “very welcome”, but noted the authority’s budget is “still less than it was more than a decade ago following years of national austerity measures”.

Cllr Mudd said last year was “extremely challenging” and that Covid-19 had increased demand on some services.

“Newport’s council tax rate has traditionally been among the lowest in Wales and if we raised it in line with the average in Wales, we could raise another £8m towards our spending,” she said.

“However, we want to strike a balance to ensure we can deliver the services our residents require and keep the rise to a reasonable level and lower than last year. The proposed increase would cost the majority of households in Newport an extra 77p to £1.02 a week.”

But Conservative group leader, Cllr Matthew Evans, criticised the proposal.

He said: “The fact they had the largest settlement in Wales and they are still proposing to put up council tax by five per cent - when it was 6.95 per cent last year - is absurd.," he said.

“I am amazed they are doing that when people are in such difficult financial straits at the moment.”

The council’s cabinet will meet to agree opening a public consultation on the proposals at a meeting this Friday, January 8.