A report outlining Neath Port Talbot Council’s draft budget for 2025/26 has been published.
Councillors will be asked for permission to begin a public consultation on its draft budget on the 10th January 2025. If agreed, the consultation will run until the 31st January 2025.
During this time, the public can share their views on how the council plans to continue delivering more than 400 vital public services during these challenging times.
Despite the difficult financial background, the council hopes to deliver a budget with no significant cuts to services or jobs.
For a number of months the council has been working on potential options to address an anticipated shortfall for the 2025/26 year.
On 2nd October 2024 the Cabinet agreed to engage on a wide range of savings proposals which included:
• Moving to three weekly waste collection, removal of wheelie bins and introducing charges for green waste (originally proposed to save £739k)
• A reduction in street cleansing staff (originally proposed to save £379k)
• A reduction in drainage repair teams and highways maintenance budget (originally proposed to save £210k)
However, listening to feedback from the public during an engagement exercise held in the autumn the above proposals are not now being considered.
Following a decade of real term cuts, several additional factors in the last few years have made this another difficult year for setting a balanced budget. These include:
• Covid’s legacy has left more people wanting help from social and homelessness services, and more young people presenting with Additional Learning Needs (ALN).
• The Ukraine War caused energy price increases and a steep rise in inflation. While inflation is now below 2%, many goods and services remain expensive and energy prices and interest rates remain high.
• The cost of living crisis goes on with many of our residents and local businesses experiencing financial hardship. The council is engaged in a range of significant economic development opportunities and is a key partner in responding to the changes at Tata Steel UK Ltd, the cumulative impact of this is very challenging.
The Welsh Government’s Provisional Local Government Settlement was published on 11th December 2025. Neath Port Talbot received an increase in funding of 4.4% which is the tenth highest in Wales. While the increase is welcome the actual funding increase is still nowhere near sufficient to meet existing pressures.
The Welsh Local Government Association (WLGA) has estimated local government across Wales faces a funding gap next year of around £560m whereas the overall increase in revenue given to councils represents extra funding of only £253m, less than half the amount needed. The budget shortfall for Neath Port Talbot next year is c£15m.
Inevitably all councils will need to make difficult decisions on cuts to services and increases in Council Tax. The council has been working hard to identify savings and income generation proposals to minimise the impact on council taxpayers and services. Some of these proposals have already been approved and will be implemented in the next financial year.
In determining how much money to allocate to councils, the Welsh Government has assumed Council Tax will rise by an average of 9.3%.
Neath Port Talbot Council is proposing to consult on a 7% Council Tax increase.
To view the full report, visit: https://democracy.npt.gov.uk/documents/s103866/CAB-100125-Budget%20permission%20to%20consult%20report%20-%20FINAL.pdf
