NEWPORT City Council faces "very few choices" after revealing a budget gap of £33 million in the coming year.

The council say challenges being faced by residents, businesses and individuals will be at the forefront of their considerations as they plan their 2023/24 budget.

Work is currently under way to plan how the most important services will be delivered, with Newport City Council facing a budget gap of £33 million.

Cllor Jane Mudd, leader of the council, said: “There is absolutely no doubt that the coming year is going to be challenging.

“Our main aim in setting next year’s budget will be to ensure that the core of our most fundamental services are maintained for residents, but it is unlikely that any service will be delivered as they are currently. 

"We will always aim to support those that need an extra helping hand, but all council services will most likely require some adjustment."

Ms Mudd said the balancing act would be "very difficult".

“The cost of providing services is going up in the same way that everyone’s cost of living has risen," she said.

"At the same time, more people are accessing those services, increasing demand. So we will inevitably have a considerable gap between what money we have available to us and what we need and want to spend.

“Local government as a whole is facing the same challenges.

"This comes not long after many years of austerity when we faced real-term budget cuts. Newport Council has already implemented more than £90 million of savings since 2011 – so there are very few choices left to us.”

Examples of the increasing costs and pressures being faced by the council include:

  • Increased fuel and energy costs - gas is 300 per cent more expensive, electricity 150 per cent. This affects everything from schools to streetlights.
  • More demand for care - costs have risen from £43.5 million in 2019/20 to a forecast £58 million this year.
  • Around 1,000 more pupils attending Newport schools in the last three years.
  • Linked to the challenges of the pandemic, more emergency placements for children looked after. A forecast cost of £2.2 million in 2022/23 compared to £300,000 in 2019/20.
  • Inflation rates of around 10 per cent are increasing the cost of all services and supplies bought by the council.

More than three-quarters of the council’s budget is funded by a grant from the Welsh Government, which means the authority is reliant on that grant.

The money raised through council tax only accounts for less than one quarter of the council’s budget.

However, the council say they recognise this is a very substantial bill for residents, despite Newport maintaining "one of the lowest rates in Wales for many years".

Cllr Mudd added: “To give context, this year’s budget for is £343 million, so to have to plug a gap of around £33 million next year is a huge proportion. 

"Added to that, two thirds of the council’s budget is spent on schools, education and social care.”

A number of proposals will be considered by cabinet at their December meeting and then put out for public consultation.

For more information about the council’s budget, how they spend their money, the budget setting process for 2023/24 and how and when you can have your say, visit newport.gov.uk/budget