Mixed reaction to city council’s proposed funding for next year

Newport is on track to receive the highest increase in council funding for the third year running.

Provisional local government settlement figures for 2026/27 show the city council is expected to land a 4.3% rise in the money it receives to run public services – or in cash terms, an extra £14.3 million.

While the increase is smaller than last year’s, it dwarfs the average 2.7% boost that Welsh councils will typically get for next year’s budgets.

Central government grants make up the vast majority of funding for local authorities in Wales.

Cllr Dimitri Batrouni, who leads the city council, said he welcomed the provisional settlement figures.

“From our semi-conductor cluster to investment in the city from the likes of Microsoft and ABP (Associated British Ports), Newport is growing into the next industrial powerhouse in Wales,” he said.

“This 4.3% increase reflects our status as the fastest growing local authority area in Wales, and the increased demand on our services which that growth brings.”

While the final settlement figures will be confirmed in the coming months, Cllr Batrouni said the provisional data “allows us to assess with a bit more clarity what the impact will be on our 2026/27 budget, albeit with the acknowledgement that the settlement is provisional at the moment”.

He added: “We are pleased to see, though, that the government is taking steps to protect the funding of local authorities across the country and recognises the vital services we deliver on behalf of our communities.”

Cllr Matthew Evans, who leads the Conservatives in the city council chamber, was less impressed by the provisional settlement figures.

“On the face of it, it seems a generous enough offer – but I’m assuming it’s because the population of Newport has had the biggest increase in the country,” he said.

“While it initially does seem generous, we’ve had similar ones in the past and ultimately residents have ended up with council tax rises high above inflation.”

Council tax bills rose by 6.7% last year, equating to an extra £100 for people living in Band D properties, following an 8.5% increase a year earlier.

Cllr Evans said he was “not blaming the council entirely” for higher bills, and claimed the Welsh Government “should be looking at a more generous settlement” for the city in the spring.

“We want to make sure residents of Newport don’t get hit again with way over-inflation rises,” he added.

However, Jayne Bryant, Newport West MS and the cabinet secretary for local government and housing, said it was “not appropriate for the Welsh Government to set an arbitrary level of council tax increase”.

“The setting of budgets, and in turn council tax, is the responsibility of each local authority and authorities will need to take account of the full range of sources of funding available to them, as well as the pressures they face,” Ms Bryant explained.

“I encourage councils to continue to carefully balance the impact of increases on household finances with the loss of support and services,” she added. “I know that across Wales, leaders, elected members and officers alike will be striving to find ways to make the best use of their resources to make the most difference for their communities.”