On the 6th of March, Cardiff Council debated and approved the local authority’s budget plan for 2025–26. Several factors, including inflation and expected pay increases for public sector employees have meant that the cost of delivering services is set to be over £67.2 million more in the next financial year than this year. Unexpected extra funding from the Welsh government has helped reduce this budget gap to £27.7 million.
The plans will see council tax increase by almost 5%, which the local authority has stated is nevertheless the lowest of any council in Wales. At least sixty jobs at the council are expected to be lost through voluntary redundancy and non-replacement of vacancies, which is expected to save up around £800,000.
The programme includes £136.1 million to develop Cardiff Cross Rail, £41.4 million for motorway infrastructure, and £207.2 million on economic development, particularly for the new Indoor Arena and the International Sports Village. The council has also committed to increased funding for schools, services for children, and social care, as well as funding for reducing inner-city waste and fly-tipping, improving parks, and supporting community events.
Alternative budget plans were put forward by the council’s Liberal Democrat and Conservative groups, which were ultimately voted down. Their alternative budget outlined a significant change in transport strategy compared to the leading Labour councillors’ approach. Instead of current climate-friendly policies aimed at incentivising active travel, the alternative budget proposed diverting money away from cycle lanes and scrapping plans to get rid of free parking at district-centre car parks owned by the council.
The Conservatives said that under their plan, council tax would only be raised by 2.47%. Other promises included using the money diverted from cycle lanes toward bus infrastructure and fixing pavements and potholes. Other ideas included the reintroduction of community skips, reducing spending on consultancy, and providing more grant money to sport clubs. The Liberal Democrats additionally proposed increased funding for youth services, street cleaning, parking enforcement, school budgets, and a reconsideration of the council’s plans to move to a brand new headquarters.
The local authority aims to reduce CO2 emissions, air pollution, and congestion by developing bicycle lanes, encouraging people to travel through the city by bike and thereby reducing the number of vehicles on the road. These plans were heavily criticised by the Conservatives, who argued that cycle lanes are instead contributing to congestion and are adversely affecting bus services. Whether or not Cardiff Council will ever do a U-turn on its current transport policies will come down to whether Labour will be able to hold onto the control of the council it has had since 2012. The next council elections are expected to be held in 2027.