But average £50 Council Tax hike and £10m ‘efficiency savings’ proposed to cover budget shortfall next year
A BILLION pound spending plan to help the city recover from the pandemic has been revealed in the council’s Budget proposals.
The five-year plan was outlined as Cardiff Council put forward its 2021/22 Budget and commits to building new council homes, schools and funding environmental projects in the city.
But a £15.6m shortfall in the budget will be met by a proposed 3.5% Council Tax increase – equivalent to approximately £50 a year for the average Band D property – and £10.2m in unspecified “efficiency savings”.
Council leader Huw Thomas called it “one of the most important budgets this council has set,” as the city responds to the lasting impact of the pandemic.
He said: “This council must be at the forefront of getting Cardiff back up and running. We will do everything in our power to create much-needed jobs, whilst building better schools and new council homes for those in most need.
“We also want to help re-invigorate the city’s cultural offering while building a greener and cleaner Cardiff – a city fit for the future – which has much to look forward to in a post-pandemic world, and we need to do this while safeguarding our public services which have played such a vital role supporting our residents throughout the pandemic.”
But the increase in Council Tax, despite Cardiff receiving an £18m funding boost from the Welsh Government for next year, has drawn criticism from opposition councillors.
“Once again this is too high,” said opposition leader councillor Adrian Robson. “This year more than any year the council has a duty to all those in Cardiff, that includes those who perhaps do not use many of the council services but pay the highest taxes across the city.”
He said the Conservative’s alternative budget would support taxpayers and increase Council Tax by a smaller amount in line with last year’s proposal of 1.9%.
Five-year spending plan highlights
- £378m investment in social housing including new council homes
- £251m on new school builds
- £234m in developments including a new arena, the international sports village and the Atlantic Wharf redevelopment
- Building of a new recycling facility in Cardiff north
- £61m to develop cycle routes
- £25m for green energy sustainability projects
- £9.7m investment in parks and playgrounds
- £5.4m investment in leisure centres
Two thirds of all council spending goes on schools and social services and both areas see proposals to increase their funding in the budget.
Social Services budgets will increase by £11.3m while Education budgets will increase by £9m (including £6.3m for schools).
In addition, an extra £5.2 million will be available to projects designed to tackle homelessness and £500,000 has been earmarked for summer activities for young people whose school year has been disrupted.
The budget will go to the council’s Cabinet for approval next Thursday (Feb 25), before going to a full council vote on March 4.
