Council tax set to rise as chiefs face a shortfall
NORTH Tyneside residents are set to be hit with a council tax rise as local authority chiefs face a cash shortfall of almost £11m.
Bosses have confirmed that they plan to impose a 2.99% hike in council tax bills next year.
It comes amid warnings of a predicted £10.8m funding gap in 2022/23 and more than £27m over the next four years.
However, borough council chiefs said that their budget cut proposals will not involve any redundancies and “do not include any substantial impact to front line services or closures of any facilities”.
North Tyneside elected mayor, Norma Redfearn, said: “Our commitment to support our residents is unwavering and while the Government’s proposed funding does not cover the gaps that have been created in our finances over the last 10 years we will prioritise protecting the most vulnerable families in North Tyneside whilst continuing to invest in the borough.
“Throughout the pandemic we have led the way in providing support to our residents, the full impact of the pandemic is not yet known, this is why we will continue to provide this support through our grants programme and extension of our Local Council Tax Support Scheme.
“When allocating our funding the Government expects us to increase our council tax and apply the Adult Social Care precept, this is on top of the increases to National Insurance contributions and the general cost of living. It has left an increasing number of our families struggling and exposed the huge inequalities in our borough.
“The support we are proposing as part of this budget paper will mean no family is left behind.”
North Tyneside Council plans to increase council tax bills by 1.99%, plus an additional 1% precept to pay for adult social care services.
The rise, which will put an extra £3m in the council coffers, equates to between £34.13 and £102.38 for the year depending on a property’s council tax band.
Council house tenants in the borough are also facing a rent increase of 4.1% next year, as well as higher service charges.
The council said that specific details of how it plans to deliver more than £7m worth of “efficiency programmes” would be announced in the new year, ahead of its 2022/23 budget being formally agreed next February.