Schools will receive an additional £25 million as part of the council’s budget proposals.
Council tax is a tax levied by local authorities on households to collect revenue to meet their needs. It is calculated based on the Council tax band allocated to each dwelling by each local authority.
The council tax accounts for around a quarter of the council’s income. It helps to pay for libraries, education and social services.
People living in deprived areas and those on the list who have difficulty paying are all supported through the Council tax reduction scheme.
The council says a 3.95% increase in Council tax will be one of the lowest in the country this year and it will be a reduction of £1 a week for many people.
Cardiff Council has already done a lot of consultation on the proposals.
But some residents in Cardiff oppose the Council tax rise. Aisha Sumare says Council tax is expensive.
“I think there is definitely a balance in like a household and the city levy because everything that has gone up is hard to keep up with the bills and there is no balance, for example, with food bills and gas bills.”
Cardiff Council is also currently facing a number of difficulties to balance the need to pay for council services. Cardiff Council was initially considering a funding shortfall of £53 million before receiving word that the Welsh Government would increase funding by nine percent. But it still faces a budget shortfall of £23.5 million.
Cardiff Council says it has done its best to keep the rise below inflation.
The council’s Cabinet member for Finance, Modernisation and Performance Cllr Chris Weaver says raising enough money in the short term is a major challenge.
“We have obviously captured the lowest possible value for some people and I hope people will understand that we have done our best. Any increase is going to be difficult and we have to find ways to fill that gap and try to find it through savings and efficiencies, but it’s not enough. We do know that we’re going to be facing a budget next year as well and we’re expecting cuts again so the challenge is to be prepared for all the savings we’re going to make.”
Cardiff Council will vote on the proposal on March 9.