Newcastle’s council leader has warned that a “building block of democracy” is under threat as massive budget cuts edge closer.
City council chiefs expect they will have to make £67m worth of cutbacks over the next three years as public finances are put under severe strain, starting with £23m savings in 2023/24. Residents are facing a 3.99% hike in their council tax bills and rising charges for car parking, while social services are being asked to slash their spending by more than £6m.
A total of 54 council jobs will also be lost, though 40 of those set to go are currently vacant posts. More than £300m has been wiped off Newcastle City Council’s annual budget due to austerity cuts since 2010 and authorities across the North East are having to make big savings this year, as they grapple with an economic crisis and spiralling inflation costs.
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Newcastle Labour leader Nick Kemp told a cabinet meeting on Monday night that deciding how to balance the books this year had “not been an easy task whatsoever”.
He added: “Fundamentally, the big elephant in the room is the fact that without long-term sustainable funding from central Government we, along with every other local authority in the country, will face these challenges on a yearly basis.
“Ultimately, I have a firm belief that sustainable local government is the building block of democracy and government in the country. Therefore we need to work together, whatever our political persuasions, in continuing to lobby for that case.”
The budget proposals, which are due to be debated and signed off at a council meeting next Wednesday, include:
- A council tax increase of 3.99%, including a 2% adult social care precept increase, costing a typical Band A property an extra 94p a week and £1.42 a week to a Band D property;
- Cutting £3.24m from adult social care services by “remodelling care assessments but maintaining adequate support for those who need it”;
- Cutting £3.3m from the children, education and skills budget by “safely reducing demand for services”;
- Increased fees for parking in council-run car parks, the exact details of which have not yet been announced;
- Saving £1.25m from “non-essential expenditure” in areas including overtime pay and taxi fares in children’s social care;
- A “review” of the Bikeability cycling training in schools.
Labour councillor Paul Frew, the cabinet member for finance, said that setting a budget had been a “big challenge” while there had been an “enormous amount of turbulence” for civic centre finance chiefs to deal with. He praised the council for coming up with a plan that does not impose the maximum 4.99% council tax rise allowed by the Government this year, an option which 75% of councils are expected to take, but said that “very significant” social care needs meant that residents’ bills have to increase.
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