Local authorities across the region have warned of an unprecedented financial crisis, with major cuts to services looming as cash-strapped councils struggle to balance the books in a period of soaring inflation and recession. Newcastle City Council unveiled its latest plans on Friday, warning it will need to save £23.2m in 2023/24 – and more than £63m over the next three years.
Her proposals include a 2.99% rise in council tax, a £6.5m cut to the social services budget and a possible 20p per hour rise in city center car parking charges. The announcement comes ahead of a fresh squeeze on public spending expected to be confirmed in Chancellor Jeremy Hunt’s Autumn Statement next week, with Newcastle City Council already saving £347m since 2010. Read more: Newcastle tower block residents hit out ‘incredibly hard’ at 24-hour demolition works in city center The authority promised to reshape its services, which are in growing demand, while “keeping residents safe from harm” and said it had prioritized freezing fees and the cost of school meals. Nick Kemp, the council’s Labor leader, said: “Increasing financial pressure on councils everywhere means that inevitably, our budgets cannot stretch as much as we would like. We have taken every step to mitigate the impact of the Government’s cuts on our residents and are fully focused on supporting people and businesses in Newcastle to overcome the cost of living crisis.” Newcastle Civic Centre. Budget proposals include:
An increase in council tax of 2.99%, including the adult social care charge of 1%, which equates to an increase of between £36.79 and £110.37 per year, depending on the household’s council tax.
Cut £3.24m from adult social care services by “reshaping care assessments but maintaining adequate support for those who need it”. A £3.3m cut from the children, education and skills budget ‘safely reducing demand for services’. Possible increase of 20p per hour for on and off street parking in the city centre. Deletion of more than 30 vacancies in the civic center. Savings of £1.25m from “non-core costs” in areas including overtime pay and taxi fares in children’s social care. Ending cycling training Cycling in schools.
Coun Kemp added: “These budget proposals must be seen against the backdrop of a decade of austerity, cuts to public service budgets, unfunded cost pressures of over £330 million from the Council budget and increasing demand for our services. Again, central government has failed to provide sufficient, long-term funding to enable local authorities to provide essential services to residents, and that means we have had to continue to make difficult decisions, but we have made those decisions based on the needs of our residents ensuring we can continue to provide the best service.” The city’s Lib Dem opposition said the end of the Bikeability scheme was “counterintuitive” given the council’s ambitions to reduce air pollution and that it is “not yet convinced that the council really has a plan to tackle important priorities such as cost of living and growing child poverty”. On the significant cut to social services budgets, Lib Dem leader Coun Nick Cott said: “I understand there is a plan to spend a bit more on preventative measures which could lead to people not having to use social services care. “This is something I absolutely welcome, but I believe the targets are potentially very difficult to achieve and are based on assumptions about demand for services that are very difficult to predict. Similar proposed cuts in recent years have proved impossible to implement and are officially being phased out this year. “ The proposals will be discussed by the council’s cabinet on Monday, November 21, before a seven-week public consultation begins the following day. Read more:
