At the beginning of each year, the Council sets a budget for the next financial year that details how much money we will be able to spend on each of the services that the council provides. These include schools, street lighting, road maintenance, waste and recycling collections and providing care to vulnerable people of all ages, through Social Services. Across our service delivery, there will be continued commitment to climate change and decarbonisation in line with “
One Planet CardiffExternal link opens in a new window.”
In the current financial year, the Council’s budget is £682 million. Almost two thirds of this, is spent on schools (£257 million) and Social Services (£189 million). Most of the money to fund these services comes from a Welsh Government grant (72%). The remainder (28%) comes from Council tax, without which, many important services valued by residents would be lost.
2022 - 2023 Budget Challenges
To set the budget the Council must make sure the estimated cost of providing services next year matches the funding available.
The cost of delivering services usually rises each year. This is because demand for services increases as the city’s population grows, and people’s circumstances change. The cost of delivering services is also affected by inflation.
As you might expect, a key factor to consider in setting the 2022 - 2023 Budget is the ongoing impact of COVID-19. During the past 2 years, the Council received significant levels of support from the Welsh Government’s Covid 19 Hardship Fund to help cope with additional costs and lost income. This Fund will not continue next financial year, and so the cost of COVID-19 related pressures will need to be reflected in the Council’s 2022 - 2023 Budget Plans. This is a major financial risk to the Council, with the Omicron variant presenting further challenges in recent weeks.
2022 - 2023 Budget Funding
The funding the Council will receive in Welsh Government Grant next year is higher than we originally expected. However, the additional funding comes with extra cost pressures. These include increased pay and national insurance contributions, rising costs, and increased care costs linked to supporting the Real Living Wage in the Care Sector (in line with the Deputy Minister for Social Service’s December announcement).
The budget consultation was closed on 6 February 2022.