Our budget for 2024/25 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, which will protect the most vulnerable members of our communities and continue investment in all parts of the Borough.
Please complete our survey https://online1.snapsurveys.com/naaq3v but first you may want to have a look at the information below.
It is a very challenging time for local authorities across the country, following years of Government cuts, rising cost pressures and rising inflation. Social care is becoming more expensive and complex. We have made some savings, but still have a funding gap of £19.2 million.
On 27 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 13 areas where savings could be made or where we could be more efficient. These 13 projects could save £9.7 million and you can read more about them in the table below. Together, the savings from these projects next year would bring the funding gap down to £9.5 million.
In its Autumn Statement in November 2023, the Government included an assumption that local authorities will increase Council Tax and the social care precept by 4.99% next year.
If we build this into our budget proposals, the funding gap for 2024/25 will reduce to £3.7 million. We will continue to support those households that need help with their Council Tax.
All of this still leaves a gap of £3.7 million, and our position remains challenging. We are seeking your views on the approach we are taking to achieve a balanced budget.
You can find more information about the projects below and watch our short video before you complete the survey.
Our two major partnership contracts (Equans and Capita) will expire in 2027. We will manage our contracts to make sure they represent good value for money and we are ready when they expire in 2027.
We have a large estate which costs us more than the current budget to repair and maintain. We will assess whether we can make better use of our buildings, whether we need them all and if we can generate savings and capital receipts by selling assets we no longer need.
The public sector is evolving, with local devolution and national policy changes. We need to respond to change and new opportunities for external funding, to ensure long-term sustainability of services and achieve better outcomes. We will work differently and be in a proactive position for any new funding opportunities in line with the Our North Tyneside Plan priorities.
Despite securing £19.5m of funding, there are still pressures given high numbers of Education, Health and Care Plans (EHCP) and the rising cost of SEND (Special Educational Needs and Disabilities) provision. We will create a system that effectively meets need, whilst being more cost effective and managing demand.
Some of the schools we maintain as a council have increasing deficits. Collectively, this debt is currently more than £13m. Without action, there is a risk the council would need to absorb this debt. We will systematically review our education system across North Tyneside so that it supports educational and financial stability.
More pupils are using this service, directly linked to high numbers of pupils with Education Health and Care Plans (EHCP) and rising delivery costs. We are proposing policy changes to ensure we meet need at a statutory level, rather than going ‘above and beyond’. There is a separate consultation beginning shortly on this project.
We forecast for the number of children who might need our support, but sometimes this number is higher than we predict, and the needs of the children are more complex. The number of children needing support has risen since the pandemic, and the cost of external provision is rising significantly. We will expand the system to meet the expected need and complexity, by having the right size team, placement mix and focussing on future sustainability.
Inflation, housing growth and sustainable waste management commitments, including the new government policy on food waste, are increasing our contracts cost and creating additional pressure during the medium-term. We will prepare for the new waste policy and continue to work with residents on behavioural change to reduce waste and increase recycling. We will introduce garden waste charges, in line with the other six councils in the North East Mayoral Combined Authority region. At £30, the proposed charge would be the lowest locally.
Specialist housing need is causing financial pressure (homelessness, bed and breakfast and children’s residential homes). We will develop alternative delivery models, including a new extra care scheme, and explore opportunities to support our objectives.
Like Children’s Services, there is an increase in both demand and complexity for Adult Social Care, as well as significant inflationary pressures and recruitment challenges within the sector. We will review our discharge pathways, client contributions and developing market capacity to appropriately meet need and regular review of packages to ensure compliance with Care Act requirements. There is a separate consultation on client contributions
available here.
The financial management of our activities is appropriate and compliant with regulations, but could we support operational activity better? We will continue to regularly review the risk areas identified here, and whether we are spending and saving in a way that supports our services, regulatory obligations, and Our North Tyneside strategic plan best.
The Authority employs a large workforce and needs to ensure we have the right people with the right skills at the right time. We will review our workforce, including targeted voluntary redundancy where it is right to do so, with recruitment and retention activity helping to ensure we have an appropriate mix of staff.
National policy means our relationship with Schools is changing, therefore we need the charging policy to keep pace with that, and services, such as school catering, are costing more. We will consider adjusting the services we deliver to reflect the changing relationship, ensuring financial sustainability.
