Senior councillors back draft budget plans despite council tax rise concerns

Nicholas Thomas – Local democracy reporter

Proposals to increase council tax in a Welsh city come at a time when the council is experiencing “exceptional levels of demand” for its services, its leader has said.

Newport cabinet members voted on Monday to back draft budget proposals that include a 4.9% rise in council tax bills but avoid major service cuts.

In cash terms, residents living in a typical Band D property will pay an extra £78.29 in total next year, if the measures are approved.

City residents will soon be given a chance to have their say on the proposed budget when a consultation period opens.

Cllr Dimitri Batrouni, who leads the Labour-controlled city council, said the increased council tax income would generate £4.3 million for the council to spend on running services.

But the proposal has also come under fire, with the Conservative group leader, Cllr Matthew Evans, claiming residents of Newport “are asked to pay more for less”.

“They’ll be understandably angry – in a cost of living crisis there’s an above-inflation increase in council tax,” he added.

Cllr Mark Howells, who leads the Lliswerry ward’s group of independent councillors, said the proposed rise in bills “places a significant burden on residents at a time when many are struggling with the cost of living”.

During the cabinet meeting, Cllr Batrouni acknowledged people “are feeling the pinch” but said the council was also facing cost pressures.

Defending the measure, he told colleagues the draft plan “does not include any savings against school budgets”.

He said the proposals were “not only no cuts – this is investment”.

The plans include extra spending on housing, amid rising demand for temporary accommodation services – and the council often has to rely on expensive hotels and B&Bs to plug the gaps.

Other spending increases include social care, in line with the Welsh Government’s plans to remove profit from children’s care.

This drew some recent criticism from Cllr Evans, who said he didn’t “see a problem with someone running a good service and making money from it”.

But during the council meeting, Cllr Laura Lacey, the cabinet member for social services, warned that children are “not commodities” and “should not be treated as such”.

Cllr James Clarke, the cabinet member for regeneration, urged residents to consider others who may have more need for the services the council provides.

“Not every family has to use social services,” he said. “But when they need them, they are there.”

He added the proposals for 2026/27 were “probably the best budget we’ve had” in his time as a city councillor, and “helps everyone”.

Cllr Deb Davies, the deputy leader and cabinet member for education, said it was “vital” residents engage with the upcoming consultation and “play a part in that process”.

“We are listening,” she added.