Council balances budget despite cuts

Press release: An abstract view of the Council crest

Despite severe government cuts, North Tyneside Council has a clear plan and budget that will protect essential services and ensure a bright future for the borough.

The comprehensive package of proposals, which was agreed at a meeting of the full council last night (Thursday 18 Feb), has been shaped by listening to the views of people from all parts of the borough.

Although forced to cut almost £16million from its budgets this year – on top of the £76million it has had to cut in the past five years – the council has pledged that vital frontline services will continue for people who need them most.  Services to local libraries, leisure centres and free weekly bin collections which were under threat have also been protected by the council.

Further investment is planned for housing and transport schemes throughout the borough and ambitious multi-million pound regeneration projects are taking place at Swans, in town centres and along the coast. 

Elected Mayor, Norma Redfearn said: “Although we’ve had to deal with huge Government cuts this year and some very tough decisions have had to be taken, I’m confident this plan and budget is the best possible way forward for North Tyneside.

 “We have not made sweeping cuts to services across the board. Our approach has been to focus on what people told us were most important to them and look at the major issues facing this borough. We are providing services to people who most need them and continuing with our exciting regeneration schemes. We firmly believe that long term investment is the only way we can mitigate the damaging effects of these Government cuts and bring more jobs and economic prosperity to North Tyneside.”

Plans to achieve the necessary reductions include modernising how council services are delivered, making efficiencies in back office functions, reducing council-owned buildings and streamlining services to offer a one-stop shop approach. There will also be a new approach for childcare – using the full range of top quality services delivered by a network of providers including schools, private sector and the community and voluntary sector.

This year the Government has also withdrawn its freeze grant scheme and incorporated an assumed two per cent increase in Council Tax levels. It means that in line with other local authorities, the council has to increase Council Tax by four per cent to raise in the region of £3 million a year.  Half of this will be used to support vital adult social care which currently costs the Authority over £49 million a year – a third of its net budget – and the rest will be used to support other frontline services and many others valued by residents.

The Elected Mayor added: “Unfortunately because of the Government we now have no other option than to ask residents to pay a little more in their Council Tax. This has been a very difficult decision to take and is the first rise in five years. It equates to around 68p per week for Band A households and we will continue to help those who may have difficulty paying the full amount.

“I know from listening to people that they understand the position we find ourselves in and why we have had make these changes if we are continue to provide vital services over the coming year – and make North Tyneside a thriving, vibrant, attractive place for residents, visitors and businesses.”

Ends