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Council continues to put Gateshead residents at the heart of its budget planning

Gateshead Council remains committed to balancing its budget amid a very difficult and unpredictable financial future.

As we faced the biggest public health crisis in living memory, councillors agreed to do whatever was needed to protect and help our residents. As the pandemic moves into its seventh month the Council continues to deal with a fast changing situation which has seen increased cost pressures and loss of income.

Extra support for adult social care market, increased quantities of PPE, support to reduce homelessness and setting up shielding hubs to support our most vulnerable residents has increased the council's costs. Meanwhile, the closure of key council-run services such as leisure centres, catering facilities and school meals during lockdown saw the council lose vital income.

The Council has already worked incredibly hard through what has been a decade of austerity and we've had to make cuts totalling £170m with £50m of further savings to be made in the next five years and all this before the pandemic struck.

It's very difficult to accurately calculate the financial impact of Covid-19 on the Council, but it's estimated to be around an extra £65.9m. So far the funding we have received from government to support our pandemic work is £15.1m.

Councillor Martin Gannon. Leader of Gateshead Council, said: "Like many other councils, we are facing tough financial decisions in the months and years to come. We were already facing tough decisions but Covid-19 has resulted in added pressure on what we can and can't deliver for our residents, businesses and visitors.

"Gateshead Council has and always will put people at the heart of everything we do. It has done a tremendous job in responding to this crisis, providing support where it was needed, making sure residents and communities were supported and not left alone.

"But this has come at a cost with the understanding that the government, as they stated, would recompense us for the additional costs of responding to the coronavirus pandemic and help us with the income that we would inevitably lose as a result of the crisis. 

"We remain committed to delivering a balanced budget for the people of Gateshead but this means residents are likely to see a change in the offer and services that they do receive from the Council as a result of reductions and the impact of the pandemic."

money/funding
08 October 2020

Gateshead Council remains committed to balancing its budget amid a very difficult and unpredictable financial future.

As we faced the biggest public health crisis in living memory, councillors agreed to do whatever was needed to protect and help our residents. As the pandemic moves into its seventh month the Council continues to deal with a fast changing situation which has seen increased cost pressures and loss of income.

Extra support for adult social care market, increased quantities of PPE, support to reduce homelessness and setting up shielding hubs to support our most vulnerable residents has increased the council's costs. Meanwhile, the closure of key council-run services such as leisure centres, catering facilities and school meals during lockdown saw the council lose vital income.

The Council has already worked incredibly hard through what has been a decade of austerity and we've had to make cuts totalling £170m with £50m of further savings to be made in the next five years and all this before the pandemic struck.

It's very difficult to accurately calculate the financial impact of Covid-19 on the Council, but it's estimated to be around an extra £65.9m. So far the funding we have received from government to support our pandemic work is £15.1m.

Councillor Martin Gannon. Leader of Gateshead Council, said: "Like many other councils, we are facing tough financial decisions in the months and years to come. We were already facing tough decisions but Covid-19 has resulted in added pressure on what we can and can't deliver for our residents, businesses and visitors.

"Gateshead Council has and always will put people at the heart of everything we do. It has done a tremendous job in responding to this crisis, providing support where it was needed, making sure residents and communities were supported and not left alone.

"But this has come at a cost with the understanding that the government, as they stated, would recompense us for the additional costs of responding to the coronavirus pandemic and help us with the income that we would inevitably lose as a result of the crisis. 

"We remain committed to delivering a balanced budget for the people of Gateshead but this means residents are likely to see a change in the offer and services that they do receive from the Council as a result of reductions and the impact of the pandemic."

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