Council facing black hole of £8m in budget
COUNCIL TAX SET TO RISE BY ALMOST 5% TO HELP CLOSE GULF
GATESHEAD Council is facing an £8m black hole in the next financial year, a new document has revealed.
The local authority will have to save £8.117m in the coming financial year, which could rise to £54.8m over the next five years.
To do this it has come up with an list of proposed changes to its frontline and administrative services in a bid to save cash.
A report set to be heard by the authority’s cabinet today revealed that council tax would be going up by 4.99%, with 3% of that earmarked for adult social care.
The increase equates to a weekly rise of £1.17 for a Band A property and £1.75 for a property in Band D.
The report said the hike, expected to raise an additional £4.8m, is needed as a result of spiralling costs and swingeing cuts to funding.
It said: “A combination of continued cost pressures and significant funding reductions has left the council with little choice but to increase council tax to protect the delivery of essential council services to the residents of Gateshead.”
However, in December, the authority’s cabinet agreed to extend the council tax support scheme, which means that some 12,300 of the poorest working age households pay no more than 8.5%.
The authority wants to slash £1.2m from its budget for public health and wellbeing.
It is understood that the council is carrying out a review these services.
Part of this will be a review of various services such as sport and leisure, events, libraries, arts, heritage, allotments, community safety and public health services.
The council admitted it does not know at this stage if there will be job losses.
Meanwhile, it could also save £300,000 by closing one of its three Promoting Independence Centres (PICs).
Currently the authority has centres in Birtley, Low Fell, and Felling.
Councillors are being asked to make a decision to close one of the centres. All the centres will be assessed and then a decision will be made.
And the council could save £130,000 by scrapping its thrive fund, which provides grants to small community organisations.
The authority also hopes to save £200,000 by increasing numbers of “inhouse” foster carers and £250,000 by increasing its “shared lives” service where adults in need of care get this provided in their own homes.
If the proposals are agreed they will be voted on at a full council meeting on Thursday.