North Tyneside Council Budget Engagement 2023/24

North Tyneside Council's budget for 2023/24 is driven by the key priorities that make up the Our North Tyneside plan – a thriving, secure, family friendly, caring and green North Tyneside.  We have a very clear and detailed plan to ensure anyone who needs support can access it, to help the most vulnerable members of our communities, and to continue investment in all parts of the Borough.

The budget situation for local authorities is very challenging following years of Government cuts the Covid pandemic, rising energy costs, inflation, and the long-term impact of the war in Ukraine. This means that North Tyneside Council is looking at a funding gap of £23.1 million next year before action is taken.

On 28 November North Tyneside Council's Cabinet agreed an initial set of budget proposals to help us manage our resources and work more efficiently. These proposals included an illustration of a Council Tax and social care precept rise of 2.99% per household (with continued support for those on the lowest incomes) which would reduce the gap to £6 million.

In their Autumn Statement the Government included an assumption that local authorities will increase Council Tax and the social care precept by 4.99% (higher than their original assumption). If we build this into our budget proposals (again with continued support for those on the lowest incomes) the funding gap for 2023-24 will reduce to £3.8 million.

All of this still leaves a gap and the position for the local authority remains challenging, We are seeking your views on:
- Cabinet's proposals for the four key savings areas of commissioning, digital, asset management and workforce, while protecting front line services and avoiding closures based on the clear vision for the Borough set out in the Our North Tyneside Plan - is that the right approach?
- A Council Tax/social care precept increase of 2.99% versus 4.99% as per the government's assumptions