5% COUNCIL TAX INCREASE
'Heartbreaking' hike after authority faced with 4.2m social care costs for city
Households in Sunderland will be paying 5% more council tax in 2017/2018.
Senior councillors on Sunderland City Council’s ruling Labour cabinet have approved the rise at a meeting in the Civic Centre.
The increase amounts to an extra 79p a week for the majority of households in Sunderland, who live in a Band A-rated property. Band D properties will pay an extra £1.18 per week.
Of that 5%, 3% will be set aside to generate £4.2million, which will be used to support older and vulnerable people in care homes and more than 4,000 people who receive care in their own homes.
Cabinet secretary Councillor Mel Speding said: “The council has continued to address cuts by maximising back office savings and utilising corporate resources where possible.
“However, the scale of the funding cuts and cost pressures which the council has had to make over the last seven years mean we are simply no longer able to fund frontline services to the level we want to.”
Councillor Celia Gofton said: “Raising the council tax in this way, there are households in this city who will suffer and it is heartbreaking that we have had to do this.
“I will agree to this budget, but for me I will do that completely reluctantly and only because by law I am obliged to.”
The rise must be approved by councillors at a full meeting of the council on March 1, but is unlikely to be voted down, with the fire service and police still to set their precepts.
Sunderland Conservatives leader Councillor Peter Wood, however, said there was no need for a council tax rise of the level proposed.
He said: “The Conservative Group supports the precept to fund social care but feels that overall the council tax does not need to rise by 5% as there are further savings to make and more income to bring in.
“Loss-making enterprises such as Sunderland Live, Software Centre and the Empire Theatre are hitting the council’s finances hard and not enough has been done to make them profitable.
“Likewise Sunderland loses too much on parking charges, while other councils rake in millions, and hands out unnecessary grants to the football club for concerts, to trade unions for salaries and to refurbish the city library just months before it closes.
He added: “The failure to grow the council tax base is also making the financial situation worse as there are too few higher band properties and too many areas where houses have been demolished and not replaced.”
A series of capital spending plans have also been set out.
The Port Enterprise Zone is to be given £10.2million during the next two years, setting up four “significant” plots ready for development by investors.
The second phase of a £10million scheme, also to be carried out during the next two years, will cover the cost of LED lighting for 23,500 lamps, which will save cash in the long-term through lower energy use.
Work will also continue with South Tyneside Council on the International Advanced Manufacturing Park (IAMP) on land next to Nissan, which is expected to create 5,000 “high quality” jobs.
A £12.5million package has been put together for Sunderland Strategic Transport Corridor third section, which will improve the roads to the New Wear Crossing to St Mary’s Way and opening up developments in Pallion, Deptford, Farringdon Row and other areas on the south side of the river.
A further £2.9million has been set aside for the Tall Ships Race and £2.7million for children’s services and extensions to Benedict Biscop and St Paul’s CE School to meet future demand, as well as the refurbishment of Southwick Primary School.