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Prioritised approach to council budget

Budget scales

Gateshead Council is asking residents for their views on a prioritised budget approach which will help direct its resources over the next five years.

After years of cuts in government funding and an increasing demand on council services, especially in social care, the Council has had to refocus its resources on the areas that matter the most and take a longer-term view to its financial planning to support delivery of its priorities.

The Council is committed to making Gateshead a place where everyone thrives and is working to ensure the inequalities that exist in the borough are narrowed. Five priority areas have been identified to help deliver this; Economy, Health and Housing, Poverty and Inequality, Climate Change and Transport.

A £50 million funding gap for the Council has been anticipated over the next five years, due to the growing demand for adult and children's services, uncertainty from the Government on funding and increasing costs which cannot be met by council tax and business rates alone.

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Leader of Gateshead Council, Martin Gannon said: "Lack of clarity from Government on our long-term funding cannot stop us from making the decisions needed to ensure Gateshead and its communities prosper and thrive in the future."

"As a Council we are committed to reinvigorating our local economy, helping boost opportunities for new jobs and better skills, developing good quality housing which meets the needs of local people and help them live healthier lives. "

"We need to cut carbon emissions and improve air quality and support local people to help make Gateshead a healthier and cleaner, greener place to live and work."

"The assumption and expectation by the Government that local authorities will impose a council tax increase, regardless of the impact that it will have on local people, is totally unfair. As a Council we'll continue to fight for a better future for Gateshead and ensure that those who require support have access to it."  

Funding from Government in 2020 / 21 assumed a 1.99% council tax increase for general services, and a 2% adult social care council tax precept to help meet the growing costs of adult social care, totalling a 3.99% rise.

This will mean for most properties in Gateshead (60%) which have a band A Council Tax, an increase of approximately 90 pence more per week or £47 per year. It is estimated this will raise approximately £3.7m in funding to help provide vital services for Gateshead residents.

Councillor Gannon added: "Despite budget savings of £170 million since 2010, that doesn't mean we are any less ambitious for the people of Gateshead. Although our approach to the budget has served us well in previous years, a different approach is now required to make sure we can deliver those long-term outcomes which will make the most difference to people's lives and create the right conditions for everyone in Gateshead to be able to thrive."

From today until 11 February, local people can give their views on the budget approach and Council Tax which can be found at www.gateshead.gov.uk/budget.

The outcomes will be fed back in to Cabinet and will be considered ahead of the Council agreeing the Budget and Council Tax for 2020/21 in February.

Budget scales
21 January 2020

Gateshead Council is asking residents for their views on a prioritised budget approach which will help direct its resources over the next five years.

After years of cuts in government funding and an increasing demand on council services, especially in social care, the Council has had to refocus its resources on the areas that matter the most and take a longer-term view to its financial planning to support delivery of its priorities.

The Council is committed to making Gateshead a place where everyone thrives and is working to ensure the inequalities that exist in the borough are narrowed. Five priority areas have been identified to help deliver this; Economy, Health and Housing, Poverty and Inequality, Climate Change and Transport.

A £50 million funding gap for the Council has been anticipated over the next five years, due to the growing demand for adult and children's services, uncertainty from the Government on funding and increasing costs which cannot be met by council tax and business rates alone.

Fill in the survey

Leader of Gateshead Council, Martin Gannon said: "Lack of clarity from Government on our long-term funding cannot stop us from making the decisions needed to ensure Gateshead and its communities prosper and thrive in the future."

"As a Council we are committed to reinvigorating our local economy, helping boost opportunities for new jobs and better skills, developing good quality housing which meets the needs of local people and help them live healthier lives. "

"We need to cut carbon emissions and improve air quality and support local people to help make Gateshead a healthier and cleaner, greener place to live and work."

"The assumption and expectation by the Government that local authorities will impose a council tax increase, regardless of the impact that it will have on local people, is totally unfair. As a Council we'll continue to fight for a better future for Gateshead and ensure that those who require support have access to it."  

Funding from Government in 2020 / 21 assumed a 1.99% council tax increase for general services, and a 2% adult social care council tax precept to help meet the growing costs of adult social care, totalling a 3.99% rise.

This will mean for most properties in Gateshead (60%) which have a band A Council Tax, an increase of approximately 90 pence more per week or £47 per year. It is estimated this will raise approximately £3.7m in funding to help provide vital services for Gateshead residents.

Councillor Gannon added: "Despite budget savings of £170 million since 2010, that doesn't mean we are any less ambitious for the people of Gateshead. Although our approach to the budget has served us well in previous years, a different approach is now required to make sure we can deliver those long-term outcomes which will make the most difference to people's lives and create the right conditions for everyone in Gateshead to be able to thrive."

From today until 11 February, local people can give their views on the budget approach and Council Tax which can be found at www.gateshead.gov.uk/budget.

The outcomes will be fed back in to Cabinet and will be considered ahead of the Council agreeing the Budget and Council Tax for 2020/21 in February.

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