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Conservative councillors in Newport have put forward “amendments” to next year’s budget proposals they say would mean a lower rise in council tax bills.

Cllr Will Routley argues the local authority should use around £7 million to keep bills down and fix potholes.

The Labour-controlled council has proposed a council tax rise of 4.9% but the Tories claim they could deliver a balanced budget with a 3.7% increase.

Senior Labour figures argue the council’s budget plans are responsible and “balanced”, and deliver investment in the services people value most.

The majority of local government funding in Wales comes from central settlement grants, with council tax making up around 25% of income.

In December, the Welsh Government announced it had reached a deal with Plaid Cymru members of the Senedd to pass next year’s budget.

The deal included extra funding for councils, with Newport’s share working out at around £6 million.

Senior officers told a scrutiny committee in January they had not included that extra funding in the budget plans because of time constraints, prompting surprise from some members.

The Tories said the council has around £7 million available – they would “invest a recurring £6 million directly” into highways maintenance, and use around £1.1 million to cut a council tax rise from 4.9% to 3.7%.

The group argues those amendments would not result in a negative impact on the overall budget, and “by prioritizing these two pillars – roads and relief – we have produced a balanced budget that reflects the true priorities of the electorate”.

Cllr Routley said the Tories “reject the notion that residents must pay more for less”.

“This alternative budget is a direct response to the voices of Newport,” he added. “It is the ‘people’s alternative’, built on the foundation of listening to residents who are exhausted by neglect and burdened by rising costs.”

Labour cabinet members have backed their own budget proposals with similar arguments, balancing investment in services with an acknowledgement many people are struggling financially.

At a recent meeting, the council’s leader, Cllr Dimitri Batrouni, told cabinet colleagues their own proposals were for “a balanced budget [and] a prudent budget that also invests in this city’s growth”.

While accepting residents would want to keep bills “as low as possible”, he said a 4.9% increase would keep Newport as one of the lowest council tax rates in Wales.

At that meeting, the cabinet also announced it would borrow to invest £12 million for highway maintenance – after potholes proved a popular topic during a recent consultation on the draft budget proposals.

Councillors will meet on Tuesday February 24 to debate and vote on the final budget plans.