North Tyneside Council’s Cabinet agreed its budget proposals on Monday (Jan 31) following a consultation with residents, businesses and communities across the borough.
The budget has been developed with a backdrop of uncertainty caused by the pandemic, short term funding mechanisms and delays from central government confirming essential spending reforms for services that have been stretched throughout the pandemic.
North Tyneside Council prides itself on prudent financial planning and although there are tough times ahead the Council can continue supporting its most vulnerable residents whilst investing in the Borough and realising its ambitions to be cleaner and greener.
The budget proposals are built around the golden thread of priorities bedded into the Our North Tyneside Plan - a thriving, secure, family friendly, caring and green North Tyneside.
The Council faces a budget shortfall of £7.9 million over the next financial year – a figure which rises to £27.6 million over the next four years.
The Government confirmed its Provisional Local Government Settlement in December 2021, providing a slightly better than projected position for local authorities and increasing the core spending power for North Tyneside.
This small increase, which still leaves North Tyneside’s spending per dwelling lower than our neighbouring authorities, includes the Government’s assumption that the Council will plug the gap by increasing Council Tax and implementing the full Adult Social Care precept.
The proposals therefore include a 2.99% increase in Council Tax bills – made up of 1.99% Council Tax and 1% Adult Social precept.
There remains a large degree of uncertainty around funding and the financial gap created by the pandemic. Long promised funding reforms, such as the Fair Funding Review, continue to be pushed back alongside much delayed Adult Social Care reforms.
Despite this the Council maintains a steadfast determination to support the most vulnerable residents in the Borough. As part of the budget proposals, they extend its Council Tax Support scheme, allowing applicants to backdate claims up to 26 weeks, rather than the current 4-week period. It has extended its Hardship Support scheme, which was due to end this year, with payments of £150 being available for working age claimants through the Council Tax Support Scheme.
The Council is committed to continuing investment in all corners of the Borough, including realising the ambitions of the North Shields Masterplan, the seafront cycleway, green spaces, leisure centres and housing alongside the Gateway developments across the Borough.
It also supports the Council’s climate change priority to become net-zero by 2030.
The proposals do not include any job losses or service reductions but does have some efficiency targets included. These efficiencies will be met by reviewing the Council’s digital strategy, workforce planning and building on the strong partnerships with NHS colleagues when commissioning services.
North Tyneside’s Elected Mayor, Norma Redfearn CBE said, “Setting our budget this year has been extremely challenging, we continue to live through uncertain times as we deal with the fallout from the pandemic and inadequate government support.
“Despite this we are unwavering in our belief that we will continue to support our most vulnerable residents whilst investing in every corner of our Borough.
“We know that many of our residents are facing difficult decisions at home, as the cost of living increases and puts even more pressure on some of our most deprived residents. As a Council we will do everything we can to support them, we have increased the scope of our Council Tax Support schemes and invested in programmes such as our Holiday Activity Programme to do just that and will continue to be flexible with the grant schemes we have available.
“We have great ambitions for our Borough and this budget will mean we can continue to deliver on these promises. The regeneration of North Shields is moving at pace and our new cycleways are encouraging more and more residents to jump on their bikes and reduce their car journeys.
“There will be tough times ahead, but residents should be assured we will do everything we can to protect services and give them the support they need. We have a strong track record of prudent financial management which will help us navigate this uncertainty.
“As a Borough I am confident we can look forward, together, with a sense of hope and optimism.”
North Tyneside is committed to being a listening council and the proposals have been shaped by a consultation and engagement exercise that ran from December 2021 to January 2022.
The consultation was hampered slightly by the Government’s Covid restrictions which meant many Council buildings were shut, however it still managed to engage with a broad range of residents through online sessions and a digital questionnaire.
The final budget proposals will be presented to the full Council at its meeting on 17 February.
ENDS.
Media Contact
harry.wearing@northtyneside.gov.uk
07717862592
Notes to Editors
To view the proposals in full please visit - https://democracy.northtyneside.gov.uk/ieListDocuments.aspx?CId=174&MId=641
The Provisional Local Government Settlement confirmed that Core Spending Power (CSP) for local authorities at 6.9% in cash terms in 2022/23. This includes the assumption that Councils will increase Council Tax by the full 3% (1% Adult Social Care precept and 2% Council Tax).
Despite the increase the CSP of North Tyneside remains lower than other neighbouring authorities, and the spend per dwelling is the third lowest in the northeast.
Comparison of Core Spending Power per Dwelling.
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Area (LA7, ANEC)
CSP per dwelling (£)
England
2,155
North Tyneside
1,984
Northumberland
2,096
Newcastle
2,154
South Tyneside
2,249
Gateshead
2,252
Sunderland
2,128
Durham
1,999
Hartlepool
2,214
Stockton
1,944
Middlesbrough
2,297
Redcar and Cleveland
2,096
Darlington
1,895
North Tyneside Council has continued to respond to the COVID-19 pandemic, utilising and issuing government grants and delivering its services. However there has been an adverse impact on the financial position. The total current forecast pressure on the Authority’s budget at the end of March 2022 includes £3.9 million due to the Covid pandemic.