North Tyneside Council’s Cabinet approved its initial budget proposals at a meeting last night (Monday 27 November). The budget supports the Council’s priorities for the borough, as outlined in the Our North Tyneside Plan.
The proposals will make sure North Tyneside continues to be a great place to live, work, visit and start a family. Residents will be supported to live healthy, secure, and fulfilling lives, in a borough committed to tackling climate change and health inequalities.
The proposals protect the most vulnerable residents and continue with investment across the borough. They are robust and responsible, and identify potential savings and efficiencies, amid increasing financial pressure across the local Government sector.
North Tyneside Council, like others in the country, has been subject to over a decade of Government funding cuts, rising cost pressures and rising inflation. Social care is becoming more expensive and complex, and requires more funding and resource.
The reality is that it is now very challenging for local authorities, and difficult decisions have to be made.
The Local Government Finance Settlement has not yet been announced, so the Council is still uncertain about the exact amount of Government funding it will receive. As part of this funding settlement, the Government assumes that local authorities will increase their Council Tax by 2.99%, and their Adult Social Care (ASC) Precept by 2%.
The Council is projecting that in 2024/25, after savings have been made, it will still have to make an in-year saving of £9.5m. If Council Tax and the ASC precept is increased to 4.99% combined, as the Government assumes, that in-year saving falls to £3.7 million*.
Looking further ahead, the Council will have a potential cumulative gap of £49.9 million over the next four years to 2028, if no action is taken. This includes the Government assumption that we will increase Council Tax by 4.99% next year, but not for the remaining years up to 2028.
The budget proposals protect continued investment in the services that matter most to residents including leisure centres, parks and libraries.
The budget proposals include support for people in the Borough who are struggling with the ongoing cost of living crisis or who find themselves in serious financial difficulties.
The budget ensures continued investment in council housing with ongoing support for any housing tenants who might be struggling financially.
The Council has a strong track record in securing external funding and will continue to seek the external grants and contributions that help deliver to priorities of the Our North Tyneside Plan.
The budget outlines how the Council will continue to invest and deliver regeneration across the whole of the borough, creating vibrant, diverse town centres and communities that create opportunities for businesses to thrive and spaces for everyone to enjoy with improved facilities and connectivity.
This investment in the borough includes building new homes, and more plans to keep the borough cleaner, greener and safer. The budget supports the Council’s ambitious target of being a carbon net-zero borough by 2030.
North Tyneside Council’s Cabinet Member responsible for Finance and Resources, Anthony McMullen said: “We have had to make some tough decisions with this budget, as like other local authorities across the country, the financial pressure on us is just too great and the increasing costs to meet the demands on social care are too high.
“To put it bluntly, the Government continues to expect councils to do more, with less. The sums don’t add up.
“But I am confident we have a robust and responsible plan to navigate through the next few years that will deliver for our residents, businesses and communities.
“Despite the pressures that we face, we have a budget and measures that mean we can still deliver what our residents and businesses expect us to, including supporting those most in need”.
The Council has analysed financial and performance data and identified key areas where short and long-term efficiencies will be made, for example, a proposal to charge £30 for garden waste removal. This would put us in line with other councils around the region, but the charge would be the lowest locally. These projects will run alongside other, more general plans to make changes and savings at the authority. A summary of the 13 projects can be found here.
Director of Resources, Jon Ritchie, said: “We’ve scrutinised data in all our service areas to see how they’re performing, and where the specific financial pressures are. As a result, we’ve been able to target our savings proposals, whilst keeping the services that our residents tell us they value.
“We’ve identified 13 areas where savings or efficiencies could be made. In some cases, this could result in further investment, if that provides better value for money longer term.
“For example, we’re looking at all the buildings and assets we own and making sure we’re making the best use of them and they’re realising their full potential”.
The budget proposals for the Housing Revenue Account (HRA) currently assume a 7.7% increase in rents, which is based on current Government guidance. However, the Council is waiting for this guidance to be updated, so this proposal may change in the coming weeks.
Residents can have their say here on the proposals as part of the annual Budget Engagement Process.
*After taking in to account some savings already made, the projected shortfall for 24/25 is £19.2 million. The 13 projects will save £9.7 million. This leaves the in-year pressure at £9.5 million. If a 4.99% Council Tax rise is assumed, the in-year pressure falls to £3.7million.
