As I write this month’s column, the 2023/24 budget papers and proposals that my cabinet and I will consider at our meeting next week are being finalised.

Reflecting on the amount of money available and how that can realistically be prioritised to deliver our most important services has been an extremely difficult process – the sums simply don’t add up.

We are facing a funding gap of £33 million. To give context, this year’s budget is £343 million, so to have to plug that gap is a huge proportion.

The cost of providing services is going up in the same way that everyone’s cost of living has risen. And at the same time, more people are accessing those services, increasing demand.

The ending of energy support by the UK government will mean most funding for public services will need to go straight back into paying energy bills for schools, leisure centres, care homes, libraries and community centres which are facing a 285 per cent hike in energy costs.

But I want to reassure everyone that the challenges being faced by residents, businesses and individuals will always be at the forefront of the council’s considerations.

It is important to point out that more than three-quarters of the council’s budget is funded by a grant from the Welsh Government, which means the authority is very much reliant on that grant.

The failure of the UK government to provide Wales with a fair funding settlement which recognises the impact of inflation and provides public sector workers with a much-needed pay rise, means every council will need to raise council tax to help deal with the cost pressures they face.

The money raised through council tax accounts for less than one quarter of the council’s budget, but it is recognised that this is a very substantial bill for residents, despite Newport maintaining one of the lowest rates in Wales for many years.

For every one per cent we put council tax up by, we have an extra £650,000 to spend on services – which you can see has minimal impact when we need £33 million.

Inflation rates of around 10 per cent are increasing the cost of all services and supplies bought by the council.

There is more demand for care - costs have risen from £43.5m in 2019/20 to a forecast £58m this year. And linked to the challenges of the pandemic, more emergency placements for children looked after are needed - a forecast cost of £2.2m in 2022/23 compared to £300k in 2019/20.

Added to that, two thirds of the council’s budget is spent on schools, education and social care – the absolutely essential services, where reductions in funding are very difficult to make.

Councils across Wales are facing the same challenges. And this comes not long after many years of austerity when we faced real-term budget cuts.

Newport City Council has already implemented more than £90m of savings since 2011 so there are few choices left.

Following our meeting on December 14, a public consultation will begin and I urge residents, businesses and partners to have their say.

There are very few places for us to go, but your views are critically important to help us make these decisions.