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Budget options 2021-22

A series of budget proposals have been identified to allow for redirection of remaining budget to help achieve the right outcome for those people and families who require more support than others. 

We would welcome your comments on the proposals for 2021/22 that may impact our residents, organisations, employees or others from the budget options published for 2021/22.

Office of the Chief Executive
Children, Adults and Families
Public Health and Wellbeing
Housing, Environment and Healthy Communities
Economy, Innovation and Growth
Corporate Services and Governance
Resources and Digital

Title Amount FTE impactBudget impact Integrated Impact Assessment (IIA)
 
Office of the Chief Executive
Increase graphics trading income£5,0000Through a targeted approach and self-promotion within the borough and beyond additional income will be generated. 
Release the proposed invest to save funding for the Office of the Chief Executive£198,0005 (vacant)Deliver invest to save activities within existing resources. 
 
Children, Adults and Families
Children's Social Care
Review of Business Support£160,0005Review of business admin processes following the implementation of the new care system. 
Restructure of Children's Centres£40,0002Review of Children's Centres to enhance front-line delivery.Icon for pdf IIA [170.82KB]
Reduction in high cost placements from the recruitment of a Therapeutic Support Team - attraction of funding from CCG for clinical staff (Invest to Save agreed)£100,0000Enhance the therapeutic offer within Children's Services. Having an enhanced therapeutic offer has significant benefits for children and young people (CYP) and is a better use of resources as it diverts CYP from residential care whilst also providing support to those in in-house provision. Funding from CCG is being sought towards this provision. 
Increase the number of in-house foster carers particularly for sibling groups£200,0000Proposal to increase the number of in-house foster carers for a further 10 looked after children per annum. 
Adult Social Care
Continuation of current discharge to assess model£1,000,0000The current Hospital Discharge Scheme which started in September 2020, in response to the pandemic, allows the Local Authority to recover the cost of the care package on discharge from hospital for up to six weeks. If this model continues it will result in income to the Council but there is no guarantee. There are no direct staffing implications.  
Outcome based assessments and targeted reviews£2,500,0000Review care packages and take a more strength based approach to assessments with a view to improving outcomes for clients and in so doing reducing  costs. There are no direct staffing implications. 

Review client income and potentially increase some client charges. Remove automatic entitlement to some payments so they are more bespoke.

£200,0000Review charging arrangements. There are no direct staffing implications.Icon for pdf IIA [203.92KB]
Delete / review vacancies£200,00010Deletion of some vacant posts in provider services. These are vacant posts, which the service has considered and agreed do not need to be filled . 
Extend the Shared Lives offer to improve the independence and outcomes for clients. £250,000None but one new post required to deliver saving.Will require recruitment of one additional shared lives worker and more self employed Shared Lives Carers, but this will be offset by reduced reliance on more costly residential care placements and/or Supported Living Schemes. One new post requested to deliver this saving. 
Close one Promoting Independence Centre (PIC) in preparation for the new build in 2022.  £300,00020The pandemic, and the discharge to assess policy, have increased the numbers of people who return to their own homes when discharged from hospital so there has been a reduced demand for PIC beds over the past 12 months. Icon for pdf IIA [241.4KB]
Redesign of all day services to develop an "Activity Based Care" function which will reduce the use of building based care but enable a more bespoke programme to be offered to clients which meets their interests and needs.£400,00010Initially delete some vacant posts. Will require a longer-term review of full establishment. Review the following services:
Marquisway, Marquisway Bungalow, Enterprises, Community Bases, GATES, Blaydon Day Centre
Proposal would be to have a reduced buildings based provision but an enhanced community based response to offering services.
Icon for pdf IIA [173.68KB]
Review of in house supported living schemes. Commission three schemes from external providers. Develop complex reablement function for transitions, hospital discharge and people moving out of residential care.£75,00021May involve retaining existing staff, or the TUPE transfer of staff to develop new model which links to the above proposal on outcome based assessments and targeted reviews (AS2). Icon for pdf IIA [251.99KB]
Commission long term home care service£250,00010The council adopted an attrition model in 2016 whereby any new service users, requiring long-term support, had their package of care delivered by an independent care provider. This proposal relates to the remaining service users (fewer than 15 clients) who were being provided with domiciliary care before this approach was adopted. This proposal will involve commissioning their care from an independent provider. Icon for pdf IIA [299.91KB]
 
Public Health and Wellbeing
Reconfiguration of arts team£46,0001 (VR)Deletion of Culture manager Post (VR), and review of arts support as part of library service review  
Review Community Safety Team£49,0001 (vacant)Realignment of duties within the team allowing for deletion of one post (Vacant). Approach to Public Health Wellbeing Offer as a Group, in line with PH Wellbeing Strategy.  
Public Health Wellbeing Offer - total budget 20% reduction ( Leisure/ Libraries/ Culture)£1,200,000Estimate Leisure 53 and Libraries/ Culture between 6-9.Long Term proposal to develop a transformative approach to Public Health and Wellbeing in supporting delivery of Thrive and the HWB strategy. The overall budget of existing group services after savings will be used to develop a HWB offer for local communities which reflects a place based approach. Activities will be proportionately targeted to 'vulnerable' and 'just coping' communities to prevent inequality rather than 'treat' its symptoms. Propose a move away from dedicated building-based provision to the use of community and/or shared council facilities offering an 'integrated wellbeing offer' as part of the place-based working. Icon for pdf IIA [220.43KB]
Impact to Leisure Services - COVID has had major impact relating to Fees & Charges income (£6.2m Income Budget) particularly relating to Leisure facilities due to closure through national and local lockdowns. On remobilisation of Leisure services in August after the first lockdown approx. 15% of members reactivated their membership. The longer term impact is unknown but expectations are the Leisure industry will take time to recover. Longer term resilience is at risk if the Government does not fund the impact of COVID and uptake does not go back to levels prior to the pandemic. Income impact for 2021/22 (based on £6.2m Income Budget) relating to uptake highlighted below:
1) - 15% uptake - shortfall £5.2m
2) - 25% uptake - shortfall £4.65m
3) - 50% uptake - shortfall £3.1m
4) - 80% uptake - shortfall £1.24m
Short term - A full review of the current Public Health and Wellbeing offer in Gateshead will be undertaken (Libraries /Leisure/Culture/Community Safety budgets). This will also take account of the current estate, including buildings which currently require significant investment to be usable. A set of options and scenarios for 20% savings will then be identified and consulted on throughout 2021-22. Reserves mitigation of £600k would be required to achieve full savings. FTE impact will depend on agreed service reduction. This review will necessarily call for difficult decisions to make the changes necessary to move to a place-based approach and to relieve budget pressure.
 
Housing, Environment and Healthy Communities
Facilities Management
Corporate Landlord Delivery Review£56,0000Adopt Corporate Landlord model to centralise property budgets for effective budget control and long term strategic maintenance planning. Consolidation of capital and cyclical programme management within one service to ensure statutory compliance across all tenures. 
Neighbourhood Services
Remove the  Thrive Fund£130,0000Removal of the Thrive Fund. This is currently administered  by the Tyne and Wear Community Foundation on behalf the Council and is allocated through a competitive application process with decisions made by a Council advisory group. It is open to voluntary, community and social enterprise sector organisations with an annual income of less than £250,000, and is aimed to support and develop their capacity and resilience to create stronger communities in Gateshead. The Council would need to continue work with other funders to increase external funding into Gateshead for VCS (eg Big Lottery), although due to COVID funding may be more limited.Icon for pdf IIA [218.64KB]
Highways and Waste
Reduction in Directorate support£39,0001 (vacant)Deletion of Post - Service Delivery Officer (vacant) 
 
Economy, Innovation and Growth
Business, Employment and Skills
Riga office development rental income£63,0000Additional rental income arising from Riga office development, now fully occupied. Rents relatively stable thereafter but subject to ability to retain/attract tenants and rent incentives for new tenants. 
Major Projects and Corporate Property
Gateshead Energy Company concession charge£92,0000Increase in income from Gateshead Energy Company, from recent expansion of the energy network, connecting RIGA, Baltimore House and PROTO to the energy network. 
Property Services£140,0003 (0.6 vacant)Review of the Corporate Property database function and integrating this work into other corporate databases.  
 
Corporate Services and Governance
HR and Workforce Development
Reduce Mileage Rates and reduce mileage budgets across the council£50,0000Mileage has reduced significantly throughout the pandemic, so there will naturally be a reduction in future as more meetings take place online. 
 
Resources and Digital
Financial Management
Reduction to the establishment£72,0003Financial Management deletion of posts arising from a review of working practices leading to efficiencies. 
Insurance £240,0000Successful internal claims handling and repudiation of claims has reduced costs to the fund.  
Early Payment Programme £20,0000The introduction of an early payment programme for the Council. This will enable those suppliers who participate to be paid earlier than their current contracted payment terms. This will benefit the engaged suppliers, the Council and the local economy. Estimates are based on the 50/50 model. 
Customer Experience and Digital
Reduce management £55,0001 (vacant)Vacant Grade L post. 
Cease Systems Contract£45,0000Systems contract to be terminated in June 2021 as part of Digitising Customer Experience programme. 
E-billing for council tax and notifications for benefits £60,0000Estimating a 20% reduction in costs by moving to e-billing for council tax and notifications for benefits. This would reduce print and postage costs arising from reducing paper bills and notifications for council tax and benefits.   
IT
Multi-Function Device (MFD) Managed Print Contract - Reduction in print£50,0000As a result of the significant shift to homeworking during 2020 there has been a considerable reduction in the volume of print via the MFDs. The council has benefited from a contract that does not include a minimum spend or print volume. Therefore, the risk is entirely with the supplier - the less we print the less we spend.  
Software Budget Consolidation and Removal of Backup Internet connection£32,0000Through the consolidation and associated decommissioning of software products it is predicted that a targeted reduction on the annual software licence costs can be delivered. 
Commercialisation and Improvement
Reduction to Performance Management team £50,0001 (vacant)A new performance management framework for the Council is currently being developed to link with the budget/resource allocation, to enable the Council to have real time intelligence of performance and impact and align with other teams across the Council.  

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