Council tax in Cardiff is to increase by 1.94% over the next financial year after budget proposals were approved amid a backdrop of protests.
In a full council meeting, the 2011/2012 budget from the ruling Lib Dem/Plaid coalition was voted through despite being labelled a "Tory budget" from opposing parties.
Councillors debated how best to manage some of the biggest financial challenges ever faced by the authority. The £24m shortfall will be met by £2.4m from council tax and £22m from cuts, including the loss of 350 council jobs - £4.6m of the funding gap came from fresh financial pressures.
Labour councillor Russell Goodway said:
"People across the world are facing difficult times.
"The economic pressures are taking their toll, and in difficult times the hallmark for caring for them is a commitment to looking after the vulnerable.
"The increases in charges for services is a regressive measure. This is the 'ether you pay or go without' budget."
The budget at a glance:
*The closure of Roath's Ty Mawr and Rumney's Cae Glas nursing homes – with the loss of 75 staff member jobs. A consultation over the closure of Cae Glas will begin shortly
*The closure of the Cardiff Central Youth Club on Ocean Way in Splott – relocated to Eastern Leisure Centre
*Charging young people under 18 to use sport pitches and increasing charges across all sports pitches for adults
*A 9.2% increase on cremation fees and a 7.5% increase on burial fees
You can download a copy of the council's budget report here and read our earlier report detailing the budget here.
Protesters also gathered outside City Hall to lobby councillors entering the meeting on the proposed cuts – read our report here.
The budget debate
Announcing the budget, executive member for finance Mark Stephens said Cardiff will have one of the lowest council tax rises in Wales, and the 2011/2012 budget protected schools and infrastructure. He said:
"There are no libraries closing this year, no leisure centres will close and no impact in on child care or play facilities.
"This is a budget protecting vital services and delivering £22m of savings. We will do everything we can to avoid compulsory redundancies, at senior management level this will be difficult."
Stephens also criticised proposed amendments to the budget from other party groups – calling the Independent's suggestion for an extra £5,000 to cover road closure costs for street parties "very odd".
But Independent councillor Adrian Robson defended the budget amendment. He said:
"Times are hard and many wages are at a stand still or decreasing. The council has a duty of wellbeing to all Cardiff residents – that's how much they pay on their council tax.
"Signage for road closures on the 29 April is honouring someone who may be the future Prince of Wales."
Job cuts were also criticised – as the council announced 350 positions would be axed. Russell Goodway called the council leader the "Alun Sugar of Cardiff" dealing out the 'you're fired's. But the council leader challenged the accusation saying it was a "budget for jobs and a budget for services".
Re-read our live-blog of the full budget debate here.
Three-year budgetary framework approved as Lib Dem councillor speaks out
The administration's corporate plan for 2011-2014 was also debated during the full council meeting – it sets out a budgetary framework which aims to reflect the economic climate from the last 12 months.
The report said:
Across Cardiff, the consequences of the economic downturn continue to impact the city and has a knock on effect which puts pressure on the services that we provide to the citizens, communities and customers.
"One of the most immediate consequences of the downturn has been the real terms reduction in funding received through the local government settlement. From the Council's perspective, the pressures on both the capital and revenue budget has occurred during a period of increasing demand for services and new challenges brought to bear through changing demographics.
The report outlines seven areas to focus and drive the budget framework over the next three years – read the report here.
The leader of the opposition David Walker called for the corporate plan to be withdrawn for amendments but it was voted through.
In an unprecedented step away from her party, Liberal Democrat councillor Francesca Montemaggi called on members to step away from party politics to make personal decisions on the budget. She said:
"I think we are much better outside this chamber. I would like to appeal to the original political animal.
"I want to ask everyone really to do their work in the days and months to come, and forget the party line and assumptions about political parties.
"I don't want my party to assume what I feel. I hope we can fund some common ground to pursue the common good outside of this chamber."
What do you think of the finalised budget for the next year? Leave your comments below.
