Newport Council urged to rethink tax increase in new budget

Opposition councillors in Newport have warned a proposed council tax increase should be reconsidered.

Draft budget proposals include a 4.9% rise in council tax rates that would add £78.29 to the annual bill of residents in Band D properties – although the council argues most homes are in lower bands and would face a more modest increase.

Cllr Matthew Evans, who leads the council’s Conservative group, called the proposed rise “the same old story yet again”.

“Residents of Newport are asked to pay more for less services,” he said. “They’ll be understandably angry – in a cost of living crisis there’s an above-inflation increase in council tax.

“There are potholes all over the city. People are right to ask where all this additional funding is going.”

Noting the proposed council tax rise was lower than in recent budgets, he added: “If they can do that in an election year, why can’t they do it in other years?”

Some of the council’s headline spending commitments are on temporary accommodation and children’s care, with the latter part of Wales-wide ambitions to remove profit from services.

On housing, Cllr Evans said the council should target empty homes, and “reusing them would be a win-win”.

Meanwhile, on children’s care, he said: “Fundamentally I don’t see a problem with someone running a good service and making money from it.”

The Tory group leader also questioned proposals to increase various fees and charges for council services, at rates he described as a “huge inconsistency”.

“This is going to affect some people very badly,” he warned.

When the draft proposals were announced, Cllr Dimitri Batrouni, who leads the local authority, said the measures would ensure “significant investments to address growing demand and rising costs in key service areas”.

“By prioritising housing, social services and education we are ensuring that every resident has the support and opportunities they need to thrive,” said Cllr Batrouni. “While we face significant financial pressures, our approach is both responsible and forward-looking – delivering essential services, maintaining low council tax rates, and building a sustainable future for our city.”

Cllr Mark Howells, who leads the Lliswerry independents, said the group “recognises the importance of investing in… essential services that our communities rely on” such as schools, housing, and social care.

“However, we cannot ignore the reality that this draft budget places a significant burden on residents at a time when many are struggling with the cost of living,” he said. “In Lliswerry as with many other wards, deprivation levels are high, and even a £1-£1.34 weekly increase in council tax for most households will feel like yet another pressure with many other costs increasing as well.”

Newport Council is expected to receive the largest increase in central government funding this year, owing to the city’s recent population growth.

But Cllr Howells said the draft budget proposals “lack a clear plan for long-term savings or efficiency” despite the “strong” Welsh Government settlement.

“Relying on increased funding and reserves is not sustainable, and without structural changes, future budgets could face serious challenges,” he added.

“We urge the council to set out a credible strategy for transformation and cost control, so that we cut waste as well as protect and improve vital services – without continually asking residents to pay more.”