More money for schools, social services, cleaner streets, and drain maintenance, alongside improvements to neighbourhood centres, have been revealed in Cardiff Council's 2025/26 budget proposals.
The proposals follow a citywide budget consultation, which saw more than 3,000 residents share their views on the council services that matter most to them.
The council has also set out how it intends to plug a funding gap of £27.7 million with measures including the loss of 60 posts, a council tax increase and several proposed increases in charges.
It said that several factors, including inflation, demand pressures, and expected pay increases for teachers, social workers, and other public sector employees mean the council's budget for delivering day-to-day services like education, social care, refuse collection, parks, and libraries is set to cost more than £67.2 million more in the next financial year, April 2025-March 2026, than it has this year.
The UK Government's October budget saw Welsh Government give Cardiff Council its second-largest funding increase in 15 years. This has reduced the budget gap from £67.2 million to £27.7 million.
Around 60 posts at the council are expected to be lost. The council said it will seek to do this through non-replacement of vacancies and voluntary redundancy. Reductions in management roles are expected to save £800,000.
Cabinet Member for Finance, Modernisation and Performance, Cllr Chris Weaver, said:
“Demand for council services is increasing due to several factors. The cost-of-living crisis has led to more people presenting as homeless in the city, from families who can no longer afford rents or mortgages to single individuals facing similar challenges. Additionally, Cardiff's ageing population means more people require our support each year, including those needing dementia services. We are also seeing a rise in the number of children with Additional Learning Needs who need specialist support. These are vitally important services, and we have to do our best to ensure people get the help they need and deserve.
“Delivering education and social care – supporting children, adults, and older people – accounts for over 70% of the council's budget. In recent years, the cost of providing these essential services has risen significantly.
“To address these challenges, since 2022, we've opened or expanded 10 schools, built 900 new council homes with plans for 1,900 more, and helped residents access over £52m in benefits. We've also worked to regenerate parts of the city and invested in local hubs and libraries where people can come for help and advice.
“We want to continue this important work but, if we don't raise council tax, we won't be able to protect the services our residents value most. This increase, one of the lowest in Wales, will generate an additional £9.4m, ensuring we can continue to provide the services our residents rely on. Importantly, support will be available through the Council Tax reduction scheme for those who need it.
“However, this increase alone isn't enough. We will also implement over £18 million in back-office savings, revenue generation and other corporate measures next year.
“Regrettably, around 60 positions will be lost across the council, following the loss of 160 roles last year. We are committed to finding efficiencies and changing how we work to minimize the impact on our frontline services.
“We want our residents to know that we have listened to their feedback. Our proposals aim to safeguard the services that matter most to them – education, support for the vulnerable, and social care.”
The strategy to close the funding gap includes:
- Efficiency & Income Savings: £12.5 million
- Corporate Savings: £2.8 million
- Service Change Proposals: £3 million
- A 4.95% Council Tax Increase: raising £9.4 million
By delivering on the above, the council said its proposals will enable it to provide net additional funding of:
- £22.9 million for schools – a 7.5% increase on the 2024/25 financial year
- £12.8 million for Adult Services – a 7.8% increase on the 2024/25 financial year
- £8.8 million for central education services (which includes home to school transport and meeting the needs of children from Cardiff not educated in Cardiff schools – 16.0% increase on the 2024/25 financial year, and:
- £6.5 million for Children's Services – a 6.5% increase on the 2024/25 financial year.
It will also allow the council to increase its one-year financial resilience mechanism to £4.5 million, enabling money to be spent in the following areas:
- £1.5 million on neighbourhood regeneration, including parks
- £1 million on schemes to improve street cleanliness and recycling
- £600,000 to help support community events
- £600,000 for Child Friendly initiatives like Cardiff Commitment
- £250,000 for additional drain clearances
- £200,000 for sports facilities grants
- £200,000 for community safety initiatives
- £150,000 for bus shelters
The proposals include setting any council tax rise at 4.95% – around £1.40 a week for a Band D household. This will be among the lowest council tax increases seen in Wales this year.
Council tax accounts for around 26% of the council's budget, with the remainder provided by the Welsh Government. Each 1% increase in Council tax generates net income of around £1.9 million, making it unrealistic to close the budget gap through tax increases alone, especially during a cost-of-living crisis, the authority said. However, this increase will play a key part in maintaining some of the services residents asked to be protected or saved from cuts, it added.
Cardiff Council Leader, Cllr Huw Thomas, said:
“I'm grateful to everyone who took part in this year's budget consultation. Your feedback has been invaluable, and we have carefully considered your input to shape our 2025/26 budget proposals. We are committed to ensuring that your priorities are reflected in our plans. If Full Council approves these proposals on March 6, you will see increased funding directed towards education, support for the most vulnerable, cleaner streets, and improved neighbourhood centres.
“I want to assure you that your voices have been heard loud and clear. Our budget reflects your needs and priorities, even as we navigate the challenges of a £27.7 million budget gap. We are dedicated to making the necessary savings and changes to continue delivering the services you value most. Your input is at the heart of our decision-making process, and we remain focused on serving you effectively.”
The Budget Report for 2025/26 includes several proposed increases in charges:
Residential Parking Charges
- The city-wide budget consultation proposed an increase in residential parking charges for second and visitor permits from £80 to £120. However, the Budget proposal reflects a lower level of increase for 2025/26, raising the charges from £80 to £90.
Burials and Cremations
- Increases of 9.6% for burials from £1,040 to £1,140, and 4.6% for cremation services from £870 to £910. Plans to look at surcharges for burials and cremations at weekends and Bank Holiday have been dropped following the consultation.
School Meals
- A 15p increase in the cost of secondary school meals, from £3.40 to £3.55. Even with this increase school meals will still have to be subsidized by the council.
As part of the Budget, the council will be reaffirming its commitment to its 2025/26 -2029/30, five-year Capital spend programme, it said. This programme is designed to create jobs, build more council homes, and improve public transport options alongside a raft of other measures to improve the city. Total capital programme expenditure for 2025/26 is projected to be £506 million, with a five-year total of over £1.5 billion.
It includes the following:
- £686.8 million investment in social housing, including new council homes
- £172.8 million on new school builds
- £136.1 million to develop Cardiff Cross Rail, cycle routes, improve transport infrastructure, encourage active travel and sustainability, subject to grant funding
- £35.5 million investment in existing schools' infrastructure
- £41.4 million investment in highway infrastructure
- £207.2 million on economic development initiatives, including the International Sports Village and new Indoor Arena (which is primarily developer funded)
- £105.5 million investment in non-schools buildings, including core office buildings
- £43.8 million for disabled adaptations to help people continue to live in their own homes
- £38.0 million to address flooding and coastal erosion
- £21.5 million investment in parks, playgrounds, open space, and harbour infrastructure
- £8.5 million to support waste collection and recycling activity
- £19.7 million for neighbourhood improvements
- £4.7 million investment in Right Homes Right Support Strategy for children, children's respite provision and gateway accommodation for young people.
Cardiff Council's Cabinet will now take the Budget Report on Thursday, February 27, which – if agreed by Cabinet – will then go to Full Council on March 6 for approval.
