03/01/25

Cardiff residents are being urged to take part in a budget consultation that will help shape the future of essential council services in the city.

Thanks to a better-than-expected settlement from Welsh Government, Cardiff Council has seen a projected £60 million budget gap reduce to £23.4 million for 2025/26.

Despite this improved financial outlook, several factors, including inflation and rising demand for services, mean the cost of delivering essential services like education, social care and dealing with the housing emergency, continue to rise.

To address the £23.4 million budget shortfall, the council is proposing a combination of measures including efficiency savings, some service changes, increased fees and charges, and a rise in council tax.

A public consultation on these proposals will open on Thursday, January 9, 2025, and run until midnight, Sunday, February 9, 2025. In it, residents will be asked for their views on potential changes to services and funding priorities.

The key budget proposals include:

1. Increasing Investment in Education and Social Services:

• An additional £19.8 million for schools, ensuring no savings targets for schools in 2025/26.

• £8.8 million more for central education services.

• £7.5 million more for children's services.

• £12.1 million more for adult services.

2. Efficiency Savings:

• Significant back-office reductions and the adoption of new technology to save costs.

• Managed reduction in staff numbers through voluntary severance.

• Total efficiency savings expected to realise £11.5 million.

3. Council Tax Increase:

• Council Tax accounts for around 26% of the Council's budget. Each 1% increase generates approximately £1.9 million. While no figure has yet been set for council tax increases, any money raised in this way would offset the residual balance.

4. Residual balance of £11.9 million:

• To be addressed through further efficiencies, service changes, increased fees (including Council Tax), and using other funding sources such as earmarked reserves.

In the consultation Cardiff residents will be asked for their views on proposals which directly affect the services they receive including:

• Parking Charges:Increasing residential parking permits from £30 to £35 for the first permit and from £80 to £120 for the second permit.

• Burials and Cremations:Increasing the price of burial services by £100 to £1,140 and cremation services by £40 to £910. Purchase of a grave to increase by £65 to £1,295.

• School Meals:Increasing the cost of secondary school meals by between 10p and 20p, with new prices ranging from £3.50 to £3.60. This to help bridge the council's ongoing subsidy for school meals.

• Adult Education Courses:Increasing fees to cover the costs of running the courses without the need for a £220,000 annual subsidy.

These proposals are part of the consultation and are not yet confirmed for implementation in 2025. The final decisions will be made after considering the consultation results and further discussions by council.

Cardiff Council Leader, Cllr Huw Thomas, said: "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 ensure fair funding for education and social services. In fact, as part of this consultation, we are proposing a net increase to schools, children's services and adult services. In line with our commitment to prioritise education in Cardiff, there will be no savings targets for our schools.

"We believe significant savings can be delivered through back-office efficiencies, which will not impact frontline services. These contribute the greatest amount to bridging the budget gap. However, these alone are not enough to close the entirety of the £23.4 million budget gap. As a result, the Council is considering a limited number of changes to balance the budget for 2025/26. We want to hear your views on these proposals."

Cllr Chris Weaver, Cabinet Member for Finance, Modernisation and Performance, added: "Demand for Council services is increasing due to several factors. The cost-of-living crisis has led to more people presenting as homeless in the city, from families who can no longer afford rents or mortgages to single individuals facing similar challenges. Additionally, Cardiff's ageing population means more people require our support each year, including those needing dementia services. We are also seeing a rise in the number of children with Additional Learning Needs who need specialist support. These are vitally important services, and we have to do our best to ensure people get the help they need and deserve.

"Delivering education and social care - supporting children, adults, and older people - accounts for over 70% of the Council's budget. In recent years, the cost of providing these essential services has risen significantly.

"To address these challenges, since 2022, we've opened or expanded 10 schools, built 900 new council homes with plans for 1,900 more, and helped residents access over £52 million in benefits. We've also worked to regenerate parts of the city and invested in local hubs and libraries where people can come for help and advice.

"We want to continue this important work, so it's crucial that the public take part in the debate and the consultation."

Full details of the consultation will be available on the Councils website from Thursday, January 9, with printed copies available in libraries, Hubs, and council buildings for those unable to participate digitally from January 13. The final budget proposals will be considered by Full Council on Wednesday, February 5, and will be scrutinised by the Council's Scrutiny committees in advance of that meeting.