Civic chiefs forced to wait to work out cuts

THE ELECTION CREATES UNCERTAINTY, THEY SAY

MILLIONS of pounds could be axed from North Tyneside’s budget over the next four years – but the impending general election means further uncertainty.

A report heard by the authority’s cabinet on Monday stated that based on current assumptions the council needs to save an estimated £5.4m next year and £41.8m between 2020 and 2024.

This is before any proposals around council tax increases or the adult social care precept are considered.

The council will base its financial planning on the Government’s Spending Round, announced on September 4, which pledged an extra £2.9bn for local authorities.

This included an assumption by central Government that £1.8bn of the £2.9bn would be raised by local authorities.

To meet this, council tax could be going up by 3.99%. This would be made up of a 1.99% council tax rise for general services and a 2% council tax precept added to help meet the spiralling costs of adult social care.

This comes amid the impact of budget cuts over several years and uncertainty around Government funding.

Coun Ray Glindon said: “This is a period of uncertainty. The December election means the Government’s budget statement and financial statement have been delayed.

“The proposals here are based on a set of assumptions, this is the approach recommended by the Ministry of Communities and Local Government.”

The council hasn’t yet gone into detail about where the cuts are going to come from, saying it wants to work with people to thrash out a complete budget

What is outlined in documents, however, is that the authority expects to make savings from its housing budget.

It is also looking at new ways to generate income from commercial activity, rely less on buying external services and look at how cash is invested.

Bosses expect to save £1.5m per year as a result of ending the partnership with Kier, which provided construction, housing repairs and maintenance services to the authority until April.

New council tenants could also be hit with a rent increase of almost 2% as a result of Government rules being loosened.

Next year marks the end of the Government policy to reduce council rent by 1% for four years. For at least the next five years, rent increases will return to the Consumer Prices Index plus 1%.

This means that new tenants moving into council homes next financial year could be paying 1.7% more than existing renters.

It’s not all bad news for council renters, as the report recommends £500,000 be set aside to improve services for tenants.

This would see a free pest control service for the borough’s tenants, property ‘MOTs’ and scheduled maintenance visits, as opposed to just responding to call-outs. The council has also identified £805,000 of savings that can be made by reducing recycling costs and avoiding operational costs. It also plans to stop using consultants to improve schools as well as changing how it commissions services and not filling existing vacancies.

The council says it has been able to maintain high standards across all services and kept libraries and leisure centres open, while also continuing to invest in the local environment and businesses through the careful management of resources.

The authority is drawing up its initial budget proposals in the face of continued uncertainty over future Government funding, made worse by the looming general election, which has pushed back major spending announcements by central government.

Further uncertainty comes from the unknown impact of the Government’s Fair Funding Review and the move to 75% Business Rates Retention and Business Rates Reset which may have an impact on the council’s budget from April 2021.

No final decisions have been made and a public engagement process will run until January 5, 2020.

The December election means the Budget and Government financial statement are delayed

Coun Ray Glindon