Council tax set to rise in South Tyneside as councillors appprove 3.95% increase in bills

This week, town hall chiefs agreed 2020/21 spending plans which include a 3.95% council tax rise.

The increase is made up of a 1.95% core council tax increase and the Government’s 2% adult social care levy.

From April, Band A properties, which make up around two thirds of all homes in the borough, will pay an extra 79p a week.

The bill issued by the council also includes separate amounts levied by police and fire authorities.

In his budget speech on Thursday, February 27, Cabinet Member for Resources and Innovation, Coun Ed Malcolm, said local government was facing tough challenges.

In South Tyneside, savings of £7 million savings are planned for 2020/21, with more expected in future, on top of the £168 million already lost from Government reductions since 2010.

Councillors heard that the council tax rise was in line with Government expectations, with the majority of local authorities in England compelled to do the same.

Despite budget pressures, Coun Malcolm said the authority had “faced up to the challenge” and “protected vital front line services.”

He added the budget set out a “bold, ambitious and innovative programme which recognises the need to work with all partners, including Government.”

This included capital spend of around £72.7 million for next year and revenue spending of more than £126 million.

Wider capital plans also include around £336 million up until 2024/25 with major investments into regeneration and housing.

Continued investment will also be made into South Shields 365, the International Advanced Manufacturing Park near Nissan, Holburn Riverside, North Marine Park and South Tyneside Homes stock.

On the council tax rise, Coun Malcolm said: “It’s never an easy decision, we know that many people in our communities are struggling to make ends meet.

“But financial cuts and Government complacency have left us with no other option.”

Key revenue announcements for next year’s budget include:

£200,000 increased investment into the council’s ‘welfare hardship fund’ supporting people in crisis. Extending leisure concessions to residents in receipt of a war pension. £1.4 million to be distributed to the council’s five Community Area Forums. Council tax exemptions for care leavers up to the age of 25. £300,000 investment into improvements at Monkton Stadium. Expanding extra care schemes across the borough, including supported living schemes for 30 new homes. £5.5 million investment into roads and footpaths. £28,000 towards replacement play park at Charlie’s Park in Jarrow following a fire earlier this year. £300,000 boost for area management. Council house rents increased by an average of 2.7% in line with Government guidelines. Investment into schemes to meet council’s climate change priorities.

Independent councillor, John Robertson, said lack of information from officers left him unable to prepare an alternative budget.

While welcoming the investment in Charlie’s Park, he raised concerns about council spending and borrowing.

Green Party councillor, David Francis, called for clarity on how spending plans would provide better links into South Shields town centre, particularly in King Street.

Coun Francis added that a recent petition calling for an ‘urgent review’ of bus services, following the opening of South Shields Interchange, led to an offer of a meeting in June – around six months later.

In response to a question from Labour councillor Angela Hamilton, council bosses confirmed there would be ‘”less than 20″ job losses as a result of the budget.

Independent Conservative, Coun Jeff Milburn, said the budget was “well balanced and caring”.

Council leader, Coun Iain Malcolm, closing the debate, said the budget represented Labour values of social justice and supporting the vulnerable.

He added that reforms were needed into the way that councils are funded by central Government, including council tax.

The budget was later approved following a vote with 45 votes in favour and five abstentions.

Independent councillors John Robertson, Keith Roberts, Paul Milburn, Glenn Thompson and Green Party councillor, David Francis abstained.