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. 

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 £27.7m 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." 

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 over £67.2m 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 £67.2M to £27.7M.

The strategy to close this gap includes: 

• Efficiency & Income Savings: £12.5m 

• Corporate Savings: £2.8m 

• Service Change Proposals: £3m 

• A 4.95% Council Tax Increase: raising £9.4m 

By delivering on the above, the council’s proposals will enable it to provide net additional funding of: 

• £22.9m for schools - a 7.5% increase on the 2024/25 financial year 

• £12.8m for Adult Services - a 7.8% increase on the 2024/25 financial year 

• £8.8m 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: 

• £6.5m 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 £4.5m, enabling money to be spent in the following areas: 

• £1.5m on neighbourhood regeneration, including parks 

• £1m 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 £1.9m, making it unrealistic to close the budget gap through tax increases alone, especially during a cost-of-living crisis. However, this increase will play a key part in maintaining some of the services residents asked to be protected or saved from cuts. 

Budget Consultation 

Consultation with residents showed that: 

• 86.3% supported increases in Learning for Life fees 

• 70.4% supported increases in cremation and burial fees 

• 65.6% supported increases in residential parking permit fees 

• 44.1% supported increasing council tax to protect some services; 55.9% believed council tax should be kept as low as possible 

• While 27.6% did not support an increase in the cost of secondary school meals, 38.4% supported increasing school meals by 20p to £3.60 

Fees and Charges 

The Budget Report for 2025/26 includes several proposed increases in charges. Here are the key proposals: 

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. 

These proposed increases will help to keep council tax at a lower rate, generating additional income to help bridge the budget gap for the financial year 2025/26. 

Around 60 posts at the council are expected to be lost. The council will seek to do this through non-replacement of vacancies and voluntary redundancy. Reductions in management roles are expected to save £800,000. 

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. 

You will be able to view the full report and all appendices, including the results of the Budget Consultation, on the Cabinet agenda from Friday evening, February 21 here Agenda for Cabinet on Thursday, 27th February, 2025, 10.00 am : Cardiff Council 

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 £18m 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." 

Cardiff Council will now bring forward the full set of budget proposals, but before that, they will be scrutinised by the council's Scrutiny Committees during the week beginning Monday, February 24. A live stream of all the Scrutiny meetings on the Budget proposals will be accessible through the calendar of meetings, which is available to view here: Monthly meetings calendar - February 2025 : Cardiff Council Just click on the calendar, then on the individual committee meeting, then the agenda where you will find the web link for the live video stream. 

The proposals will then go to Cabinet for approval on the afternoon of Thursday, February 27. A live stream of that meeting will be available to view here Agenda for Cabinet on Thursday, 27th February, 2025, 10.00 am : Cardiff Council  

If agreed by Cabinet, Full Council will vote on the proposals on Thursday, March 6, from 4.30pm which will also be live streamed here Agenda for Council on Thursday, 6th March, 2025, 4.30 pm : Cardiff Council  

Capital Programme Expenditure (2025/26 to 2029/30) 

As part of the Budget, the Council will be reaffirming its commitment to its 2025/26 -2029/30, five-year Capital spend programme. 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 £506m, with a five-year total of over £1.5 billion. 

It includes the following: 

• £686.8m investment in social housing, including new council homes 

• £172.8m on new school builds 

• £136.1m to develop Cardiff Cross Rail, cycle routes, improve transport infrastructure, encourage active travel and sustainability, subject to grant funding 

• £35.5m investment in existing schools' infrastructure 

• £41.4m investment in highway infrastructure 

• £207.2m on economic development initiatives, including the International Sports Village and new Indoor Arena (which is primarily developer funded) 

• £105.5m investment in non-schools buildings, including core office buildings 

• £43.8m for disabled adaptations to help people continue to live in their own homes 

• £38.0m to address flooding and coastal erosion 

• £21.5m investment in parks, playgrounds, open space, and harbour infrastructure 

• £8.5mto support waste collection and recycling activity 

• £19.7m for neighbourhood improvements 

• £4.7m investment in Right Homes Right Support Strategy for children, children's respite provision and gateway accommodation for young people 

You can read more here about how the Council budget works and why there is a budget gap here