Proposed Council Tax hike in Gateshead
Gateshead Council has launched a public consultation on plans to increase council tax by almost five per cent.
It comes as the local authority faces a £34m fiscal blackhole and proposed cuts to services.
Until February 9, Gateshead residents will have an opportunity to scrutinise the council’s plans to increase council tax by 2.99% and the adult social care precept by a further 2%. Earlier financial forecasts, forming part of the council’s medium-term financial plan, revealed a £34.4m funding gap over the next five years.
This is a sum that the council admits can’t be covered with council tax and business rate hikes and will require further mitigations. In order to balance the books by 2026/2027, the council is also looking to make around £4.8m of savings, while also using £8.5m worth of reserves.
At present, Gateshead Council spends 33p of every pound on adult social care and 19p of every pound on children’s social care and life-long learning. Adult and children’s social care remain areas of high costs for the authority.
The average council tax bill in Gateshead is £1,423, with 89% of properties across the borough falling within the lower bands A-C.
In addition, the costs of addressing the safety concerns around Gateshead flyover are also in the process of being assessed. According to council documents: “Emergency works have begun and are likely to impact the outturn position. This will be factored into the position as committed costs become clear.”
This comes as the Government refused to commit to additional spending to help demolish and redesign the flyover. Plans to tear down the ailing flyover date back as far as 2008, but despite several attempts to obtain Conservative Government cash for the job, no funds were delivered.
Councillor Martin Gannon, leader of Gateshead Council, said: “Asking residents about increasing council tax is never a decision we take lightly, and it is only one way that we are looking to balance our budget for the next year. Amongst other things, we will continue to use reserves, review our services to improve efficiencies, and look to reduce demand for our social care services.
“Sadly, increases in council tax are happening across the country and this will continue to happen until local government is financed in a sustainable way. However, in the meantime it is vital that we are able to provide the services we do for local people, especially for those who need it most.”
Residents can give their views on the proposals at www.gateshead.gov.uk/consultationsnew or by emailing [email protected].
Following the consultation, the budget will be proposed to Gateshead Council’s cabinet on Feburary 18 and voted on by full council on Feburary 20.