A council tax rise in Cardiff could be part of the solution to dealing with a major hole in the city authority's budget for next year. Cardiff Council revealed that it will have to find £53m in savings and income generation next year instead of the £29m it was anticipating.
The financial gap, which one council cabinet member called the biggest the authority has seen in 10 to 12 years, has come about as a result of spiralling inflation, increased demand on services and lower than anticipated income levels. Speaking about the "worrying" gap, cabinet member for finance, modernisation and performance Councillor Chris Weaver, said: "I would say, given how large this gap is, it would be very difficult for council tax not to be part of the solution, but at the same time we are aware that many families are really suffering with the cost of living.
"It is a decision we will make in months ahead. But, unfortunately, with a gap this wide, it will probably be a combination of a council tax increase and savings." Cllr Weaver added that a decision on council tax won't be made until next year, once the council has been given a provisional settlement from the Welsh Government - this is the money given to local authorities across the country in order for them to plan their budgets.
