Balanced Budget Agreed

South Tyneside Council has agreed a balanced budget with fairness running throughout its decision making.

Borough Council debated the Medium-Term Financial Plan 2025 - 2030 at its meeting on Thursday 27 February and agreed £13.1m of savings for the next financial year.

A package of investment worth £171m over the next five years has been agreed as part of a rolling programme of capital investment for the borough.

The Council has committed to continued investment in adult social care accommodation to support independent living and new children's homes to boost provision for children who are looked after by the authority.

The Council will also invest £29.5m in its housing stock each year for the next five years as well as supporting the building of new council properties for affordable rent.

Targeting support to make things fairer is the council ambition that runs throughout the budget and medium-term financial plan, putting fairness at its heart.

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 Governance, Finance and Corporate Services at South Tyneside Council said: "The Medium-Term Financial Plan outlines how our resources are focused on tackling the biggest issues facing residents, supporting those in need or crisis, whilst continuing to deliver the hundreds of day-to-day services we provide.

"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.

"At the same time, we're investing in things that can create jobs, provide shelter, support independence, keep children safe and save the council money in the long run. We are working to target support at the residents and parts of the Borough that need it the most in a bid to reduce inequalities and make things fairer."

The Council also agreed a council tax increase of 4.95 per cent and rent increases to the government level of 2.7 per cent for the next financial year.

The council tax increase agreed by the Council is a combination of the Government's adult social care levy, which is ringfenced for those services, and an increase in council tax. 2% of this increase relates to the adult social care levy. South Tyneside's council tax for the average household is still one of the lowest in the North East

The council tax increase equates to around £1.22 per week for Band A households, into which the majority of households fall. The upgraded local council tax support scheme introduced in 2024 has meant over 10,000 households receive a reduction in their council tax, reinforcing the Council's commitment to targeting support to make things fairer for everyone.

The bill issued by the Council also includes separate amounts levied for police and fire. The council tax increase for 25/26 agreed by the Northumbria Police and Crime Commissioner equates to £9.33 a year for a Band A property. The increase agreed by the Tyne and Wear Fire and Civil Defence Authority is £3.33 a year for a Band A property.

The budget setting process is an annual exercise which all councils must do. As a Council, setting a balanced budget is one of the most challenging but important responsibilities the council has.

Each year, financial pressures including increased demand for services, inflationary increases in costs to maintain services, and competing commitments, priorities, and ambitions are all weighed up.

The council works to target resources and support at the residents and parts of the Borough that need it the most in a bid to reduce inequalities and make things fairer

For more information visit www.southtyneside.gov.uk/councilbudget