South Tyneside Council budget slashed
£126m already gone from budget since 2010
South Tyneside Council has agreed its budget for 16/17 but Council Leaders that warn of difficult decisions to come.
Councillor Iain Malcolm, Leader of South Tyneside Council said: “Despite balancing the budget for 16/17, with further government cuts on the horizon, it is clear that this will get more challenging in the coming years.
“Any organisation losing 30 per cent of its funding cannot afford to maintain the status quo. The Council is no different. At the end of the day the cuts for South Tyneside are going to take their toll and although we are doing our best to minimise the impact of them, the continuation of years of grant reductions will mean we have to think hard about which services we can and cannot continue to provide.”
Over the past six years South Tyneside Council has already delivered £126m of efficiencies with a further £14m to find in 16/17 and more in future years. The cuts imposed on South Tyneside Council by Central Government since 2010 are against a backdrop of significantly increased demand for council services in areas such as Adult Social Care.
Since 2010 households in South Tyneside are now £365 worse off than the national average. Huge Government grant cuts are set to continue into 2016/17 and beyond which means that the Council will we have less and less to spend on services for local people
Over the last five years, whilst still bearing the brunt of huge cuts, South Tyneside Council has put the foundations in place to help make the Borough more resilient - to create jobs and opportunities for local people and to ensure that it continues to provide high quality services to those who need them most. Investment is focused on regenerating the Borough which in the long run will help to mitigate the massive cuts Government has handed out to the Council.
Cllr Malcolm added “We believe this Council’s budget delivers the best possible deal for the people of South Tyneside in the circumstances we face. We will continue to do our best for the Borough with the unfair hand we have been dealt since 2010.”
South Tyneside Council has consulted with key partners, voluntary and community groups and residents to ensure that the budget for 2016/17 delivers the best outcomes for the Borough as a whole.
This year’s budget will include increased income generation through new and existing services, delivering greater value for money on external contracts, integrating services to support vulnerable families, reducing the Council’s carbon footprint and sharing services with other partners. Moving forward the council is continuing to review its services to determine the shape and scope of services over the coming years.
As with many areas of the country, South Tyneside is facing significant demographic pressures. The number of residents over 85 years old is expected to double in the next 20 years. This places huge pressure upon services such as adult social care especially as Government funding continues to be reduced.
The Government has, instead of providing additional grant, permitted 2 per cent of any percentage increase in council tax bills to be ring-fenced to assist in meeting rising adult social care costs. The Council has agreed such an increase in South Tyneside to mitigate the impact of reductions in Government grant on adult social care services. It must be highlighted however, that the increase of 2 per cent this is insufficient to cover demand pressures – which continue to grow.
As with last year, and like many other Councils across the country, South Tyneside Council is asking residents to pay a little more in their council tax in 16/17 to help protect services. The proposed increase is 1.95 per cent which together with the adult social care 2 per cent equates to around 67p per week for Band A households, into which the majority of households fall.