Newcastle City Council: "A clean, green, and inclusive city."

Newcastle City Council has set out plans to deliver on residents’ priorities despite the need to save £12m next year to balance its budget.

The authority is inviting the public to comment on the proposals in a consultation which runs until January 2, 2022.

It revealed it will also have to save £12m in 2023-24 followed by another £12m in 2024-25 making a total savings target of £36m over three years.

Although it has set out a broad approach to savings in years two and three, its priority is to consult on detailed savings proposals in 2022-23 to set a balanced budget – a legal requirement.

The Government announced an extra £1.6bn for local government in its autumn budget, but it won’t be until the provisional Local Government Finance Settlement is published next month that it’s clear what it means for Newcastle.

However, the council has a strong track record of making savings since 2010 and is confident its financial planning will keep its public finances strong and stable.

While welcoming any extra money, the council’s leader, Cllr Nick Forbes, believes the increase will not be enough to avoid more painful cuts and decisions.

He said the authority had to focus on savings of £12m a year, but had a vision to make Newcastle a clean, green, and inclusive city in line with the Council Plan it published last month.

Cllr Forbes said:

“We have announced draft ambitious budget plans to ensure the council delivers on residents’ priorities. This includes some additional funding for local neighbourhood services where the impact of austerity has been felt across the city for the last decade.

“In line with what residents have told us, we will increase investment in our neighbourhoods across the city. We’re committed to developing pride in Newcastle and will deliver extra services in neighbourhoods that help make the city cleaner, greener and safer.

“The Government’s announcement of more money will not be enough to cover the significant cost pressures facing the council.

“This include rises in the National Living Wage and National Insurance – not just for our own workforce but our commissioned services - also wage increases for our staff, and inflation which could rise to 5% next year – the highest it has been for 10 years.

“We anticipate that we need to cut £12m a year for the next three years – that’s on top of £335m we have had to save since 2010 – equivalent to a loss of £2,454 per household.

“When allocating funding, Government expects councils to increase Council Tax and apply the Adult Social Care Precept, so we are left, yet again, with very little wriggle room to tackle the financial challenges ahead.

“I realise this will not be welcome as many people in our city are facing their own cost of living crisis, but the Government has left us with no option.

“We have never shied away from making difficult decisions which has put the council on a sound financial footing – but it will still be tough. However, I am confident we can balance our budget and continue to make Newcastle a clean, green, and inclusive city. But unfortunately, there is some pain still to come which is the government’s making.”

Difficult proposals for 2022-23 include:

• Applying a 1.949% increase in Council Tax

• Applying the 1% increase Adult Social Care Precept to Council Tax bills

• Taken together these will add £35.24 a year to a Band A property and £52.87 to a typical Band D property

• Reducing spend by £4.45m from Adult Social Care through remodelling services while ensuring adequate support

• Reducing spend by £2.9m from Children, Education and Skills by safely reducing demand and remodelling services

• Increasing fees and charges across a range of services including parking, financial services, pest control, bulky and garden waste collections

Next year the council is forecast to spend £241m on day-to-day services and £141.5m on capital projects such as roads, houses, schools, and other assets that support the economy and create employment opportunities. This money cannot be spent on services.

"Cleaner, greener and safer."

Cllr Forbes added:

“In line with what residents have told us, we will increase investment in our neighbourhoods across the city. We’re committed to developing pride in Newcastle and will deliver extra services in neighbourhoods that help make the city cleaner, greener and safer.”

Everyone is encouraged to have their say on the draft savings proposals. More detail and how to comment are available on the council’s website www.newcastle.gov.uk/budget2022

Last week the council launched its budget simulator – The People’s Budget – which gives residents the chance to set their own spending priorities for the council. To take part go to: https://www.letstalkbudget.org.uk

All feedback, including People’s Budgets, will be analysed, and included in a revised budget report for Cabinet on 21 February 2022. The report will then be referred to City Council for debate and approval on 2 March 2022.

Hear all the latest news from across the North East on the hour, every hour, on 97.1FM, 103FM DAB, at metroradio.co.uk, and on the Metro Radio app.