Council Budget Based On Fairness

South Tyneside Council has presented a balanced draft budget with fairness at its heart.

The Council's Cabinet will consider the draft Medium Term Financial Plan (MTFP) when they meet next week (Wednesday 5 February).

The budget has been prepared with the Council's ambition of 'Targeting Support to Make Things Fairer' running through every decision that has been made, applying budget support to the residents and parts of the borough that need it the most.

The council continues to face significant cost and demand pressures with demand on services at an all time high.

The council needs to find £13.1m in savings this year to balance the budget but proposals in the MTFP make sure that money and resources are distributed fairly to support those who need it the most.

The council has already saved £208m since 2010 against a backdrop of significant reductions in government funding. Over half of the Council's government funding has been slashed since 2010.

The council will continue to subsidise things like school meals, home to school transport and adult social care contributions but some changes are proposed to reduce that subsidy to some individuals in a bid to reduce inequalities across the borough.

Cllr Jane Carter, Lead Member for Finance, Governance and Corporate Services at South Tyneside Council said: "Balancing the budget is difficult for any council and that is why we must ensure that the limited finance and resources we do have is targeted at supporting those who need the vital safety net we provide.

"Our services protect those in need and deliver essential services such as street lighting, bin collections, maintaining the roads and cleaning the streets. But we also provide support to older people, people with disabilities and looked after children in care. The cost of adults and children's social care accounts for 70% of the council's discretionary budget so balancing the budget and protecting essential services becomes harder every year.

"Historically, keeping fees among some of the lowest in the region has, over time, created additional financial pressures for the Council. When we have made small rises to cover some of the cost of delivering services we've done it in a considered way.

"We know that some of our residents face financial difficulties. That is why we are determined to keep costs as low as possible and will continue to subsidise many services."

Planned capital investment supports the five core ambitions in the Council's 20-year Vision for residents in South Tyneside to be financially secure, healthy and well throughout their lives, connected to jobs, skills, and learning, part of strong communities while targeting support to make things fairer.

The ambitious programme includes upgrades to coastal cycling and walking routes to help improve safety for pedestrians and cyclists and works to improve road safety for school children outside of schools. The council is working to upgrade and expand the Borough's electric vehicle charging infrastructure with a view to installing up to 2,000 units over a 20-year period.

Extra care and supported living for Adult Social Care will help those with additional care and support needs to live independently in the community, while children's homes sites in Jarrow, South Shields and Hebburn will increase the number of residential places for South Tyneside's looked-after children.

Improvements to existing playing pitches and changing facilities will help promoting sport within the Borough and the construction of a three-storey extension at Mortimer Community College will expand school places.

Plans to relocate South Tyneside College into South Shields Town Centre are progressing, as is the transformation of Holborn Riverside.

The Council will continue to invest in maintaining its housing stock ensuring that homes are safe for tenants, continue to meet decent homes standards and that they are compliant with all regulations whilst ensuring sustainability across the Borough. It will also support the building of new modern and energy efficient housing.

Continued investment in South Tyneside's Community Area Forums (CAFs) will support local neighbourhood priorities.

This year council tax is proposed to rise by 4.95 per cent. Of that, core council tax is proposed to increase by 2.95 per cent and the Government's Adult Social Care levy, which is the part of council tax that can only spent on adult social care services, is expected to increase by 2 per cent.

This equates to an increase of £1.22 per week for an average Band A household of which the majority of homes in South Tyneside fall.

The final bill issued by the Council also includes separate amounts levied by other statutory bodies, namely the Tyne and Wear Fire and Civil Defence Authority and the Northumbria Police and Crime Commissioner for 2025/26. The final precepts have not been confirmed but are expected to be known by the time Council meets next month.

South Tyneside is still expected to have one of the lowest council tax levels across the North East. The council support to around 12,500 working age people thorough its Council Tax Reduction Scheme which offers up to 90 per cent discount for those who need support the most.

If the draft Medium Term Financial Plan is agreed Cabinet, it will be considered by Borough Council on Thursday 27 February 2025.

To find out more about the Council's budget go to www.southtyneside.gov.uk