A council tax rise to protect Tyne and Wear’s fire service has been signed off, despite an 11th hour financial reprieve from the Government.

The portion of council tax bills in Newcastle, Sunderland, Gateshead, North Tyneside, and South Tyneside which goes to the county’s fire service will increase by 4.99% from April.

Councillors voted on Thursday morning to agree to the uplift, which is in line with the maximum permitted rise of £5 for a band D property.

A Tyne and Wear Fire and Rescue Service fire engine | Tyne and Wear Fire and Rescue Service/LDRS

placeholder image — A Tyne and Wear Fire and Rescue Service fire engine | Tyne and Wear Fire and Rescue Service/LDRS

Members of the Tyne and Wear fire authority were told at a meeting in Washington that a revised funding settlement from the Government would give the service £1 million more for 2026/27 than had been expected, after complaints that original proposals disadvantaged the North East.

Nonetheless, the Tyne and Wear Fire and Rescue Service (TWFRS) is projecting a funding gap of £2.9 million by 2030.

A report says that will require the exploring of options to make efficiency savings, reduce services “on a risk assessed basis”, and generate extra income.

TWFRS bosses said that their budget for 2026/27 “can only be balanced if the maximum allowable council tax increase of £5 on a band D is approved”, with politicians told on Thursday that the extra Government cash would allow for staff pay rises in line with inflation.

It will take the annual charge for a Band A household to £70.07 and Band D to £105.11.

Sunderland Lib Dem councillor Paul Edgeworth said he was “uneasy” with the council tax rise but would vote for it in order to not put services at risk.

Labour’s Phil Tye, who chairs the fire authority, said he was “really pleased” that the Government had listened to concerns about the original settlement and the “miscalculation” that disadvantaged the North East.

He added that paying roughly an extra 10p per week for a band D property was “not a great deal” to ask.

Gary Haley, deputy leader of Gateshead Council, said council tax was “not fit for purpose” as a means of funding frontline services.

However, he added: “Unlike in previous years when we have said it [the funding settlement] is not good enough and there has been no change to speak of, this time it has and there is £1 million to the good. There is evidence we have been heard and long may that continue.”

But Newcastle Lib Dem Tom Woodwark argued that the settlement was “still not good” despite the 11th hour improvement, saying: “We are expected to put the maximum increase [on council tax] and build it into our finances, which if you take a step back is a terrible thing to have to do.”

The annual council tax fire precept charges in Tyne and Wear will be set at the following rates in 2026/27: