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Investing for a thriving Gateshead

Budget Gateshead

Gateshead Council's 2020 / 2021 budget will see investment in council priorities while taking a new longer-term approach to its financial sustainability.

Gateshead Council today (February 27) agreed a budget which aims to achieve the best outcomes for local people over the next five years. It includes investment in several areas to develop new and different ways of working aimed at reducing demand for services and achieving further budget savings.

Leader of Gateshead Council, Martin Gannon said: "Helping improve the lives of all our residents and businesses has always been our priority. By taking a longer-term approach to our financial planning, despite a significant lack of clarity from the government on our funding, means we can focus on what matters most to help Gateshead residents thrive."

"Yes, we still have financial challenges ahead, £50 million is needed to be saved over the next five years, due to ongoing cuts in government funding and increasing demand for children and adult social care. However, by rethinking and redirecting our resources, I'm confident we can continue to grow our economy, bring new and better jobs for local people, improve our environment and housing offer whilst still supporting and protecting the most vulnerable in our communities."

The 2020 / 2021 budget includes additional investments including:

  • £1 million to be invested in adult and children's services to support those who need help the most.
  • A three-year investment of £400,000 per year for targeted environmental improvements.
  •  £530,000 to accelerate the Council's response to climate change and achieve zero carbon emissions by 2030.
  • £372,000 investment to build capacity in the voluntary and community sector and develop a community approach to information, advice and guidance.
  • Support to boost the local economy by investing £620,000 in major sporting events and raising the profile of the borough nationally and internationally.
  • Investing over £100 million over the next five years in housing stock improvements.

Public consultation, which involved over 1,000 responses on the new approach to the Council's budget, showed residents supported the five priority areas: Economy, Health and Housing, Poverty and Inequality, Climate Change and Transport.

In addition, over half the people who responded to the consultation agreed that to help set a balanced the budget, council tax should rise by 1.99% and the Council should approve the Government's 2% adult social care precept to help meet the growing costs of adult social care, totalling a 3.99% rise. This will mean an extra 90 pence per week on a band A property or £47 per year. It is estimated this will raise approximately £3.7m in funding in 2020 / 2021.

The Council will continue to support those on a low income who need extra help through its council tax support scheme which helps over 12,000 residents with a reduction in their council tax.

Councillor Gannon added: "It's not been easy to reduce our budget by £170 million over the last decade and we know there's more savings to come, but that challenge has not let us lose sight of what's important - doing our best for local people."

"We'll continue to fight for fair and adequate government funding and are committed to doing everything we can to make Gateshead a place where everyone thrives."

Budget Gateshead
25 February 2020

Gateshead Council's 2020 / 2021 budget will see investment in council priorities while taking a new longer-term approach to its financial sustainability.

Gateshead Council today (February 27) agreed a budget which aims to achieve the best outcomes for local people over the next five years. It includes investment in several areas to develop new and different ways of working aimed at reducing demand for services and achieving further budget savings.

Leader of Gateshead Council, Martin Gannon said: "Helping improve the lives of all our residents and businesses has always been our priority. By taking a longer-term approach to our financial planning, despite a significant lack of clarity from the government on our funding, means we can focus on what matters most to help Gateshead residents thrive."

"Yes, we still have financial challenges ahead, £50 million is needed to be saved over the next five years, due to ongoing cuts in government funding and increasing demand for children and adult social care. However, by rethinking and redirecting our resources, I'm confident we can continue to grow our economy, bring new and better jobs for local people, improve our environment and housing offer whilst still supporting and protecting the most vulnerable in our communities."

The 2020 / 2021 budget includes additional investments including:

  • £1 million to be invested in adult and children's services to support those who need help the most.
  • A three-year investment of £400,000 per year for targeted environmental improvements.
  •  £530,000 to accelerate the Council's response to climate change and achieve zero carbon emissions by 2030.
  • £372,000 investment to build capacity in the voluntary and community sector and develop a community approach to information, advice and guidance.
  • Support to boost the local economy by investing £620,000 in major sporting events and raising the profile of the borough nationally and internationally.
  • Investing over £100 million over the next five years in housing stock improvements.

Public consultation, which involved over 1,000 responses on the new approach to the Council's budget, showed residents supported the five priority areas: Economy, Health and Housing, Poverty and Inequality, Climate Change and Transport.

In addition, over half the people who responded to the consultation agreed that to help set a balanced the budget, council tax should rise by 1.99% and the Council should approve the Government's 2% adult social care precept to help meet the growing costs of adult social care, totalling a 3.99% rise. This will mean an extra 90 pence per week on a band A property or £47 per year. It is estimated this will raise approximately £3.7m in funding in 2020 / 2021.

The Council will continue to support those on a low income who need extra help through its council tax support scheme which helps over 12,000 residents with a reduction in their council tax.

Councillor Gannon added: "It's not been easy to reduce our budget by £170 million over the last decade and we know there's more savings to come, but that challenge has not let us lose sight of what's important - doing our best for local people."

"We'll continue to fight for fair and adequate government funding and are committed to doing everything we can to make Gateshead a place where everyone thrives."

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