South Tyneside Council accused of hiding huge community funding cuts for neighbourhood projects

South Tyneside Council’s ruling cabinet, at a meeting this week, agreed funding to be allocated to Community Area Forums (CAFs) for the next municipal year 2025/26.

The funding is expected to be shared between the borough’s five CAFs and used to support a range of housing and environmental initiatives, providing solutions to neighbourhood issues raised by residents.

The council, in a previous statement, said the funding for 2025/26 included £500,000 being reinvested into council housing through CAF schemes, with ‘housing capital’ allocations to each CAF determined by the number of council homes in each forum area.

A total of £500,000 was also outlined for the council’s environmental capital scheme which, according to cabinet papers, is used to “invest in environmental projects that improve areas including those with local authority housing, to non-local authority housing and wider areas such as public parks or other council- owned public spaces”.

A total of £260,000 was also outlined for 2025/26 for the “local neighbourhoods scheme”, which supports “small-scale environmental improvements such as grass-cutting, weed treatment, managing shrubs, bulb-planting or fence painting.”

CAF funding proposals for 2025/26 mark a reduction of £500,000 for the environmental capital scheme compared to 2024/25 when £1 million had been allocated, a 50 per cent decrease in funding.

A reduction in funding for the housing capital scheme for CAFs of £250,000 also aimed to realign this funding elsewhere to support South Tyneside Council’s Healthy Homes programme to tackle issues such as damp and mould in council properties.

The changes, year on year, mark a reduction of proposed funding administered through CAFs with ”the total allocation” dropping from £2,010,000 to £1,260,000.

South Tyneside Council’s Green Group has criticised the changes, raising concerns about the reduction to the housing capital scheme and associated impacts on council housing repairs and accessibility improvements, as well as noting the 50 per cent funding cut for the environmental capital scheme.

Although there were no changes to funding for the council’s local neighbourhoods scheme, opposition councillors added rising costs mean that fewer local community projects can be funded.

Councillor Shirley Ford, deputy leader of the Green Group on South Tyneside Council, said the “massive cuts” to CAFs had not been mentioned by Labour during a February 2025 budget meeting where the council’s 2025/26 spending plans were signed off.

Cllr Ford said: “Green Party councillors challenged the council in the budget process and at the borough council meeting, raising concerns over transparency and the lack of detail.

“Labour has hidden these huge cuts from residents and failed to be honest about what their budget really means for South Tyneside.

“Slashing funding for housing and environmental projects will have a real impact – fewer estate improvements, neglected green spaces, and vital repairs to council homes delayed or cancelled.”

Cllr Ford also urged the council to “explain why they have prioritised cuts over investment in local communities.”

Councillor Jane Carter, Labour cabinet member for governance, finance and corporate affairs at South Tyneside Council, said the local authority was working within an “extremely tight financial envelope”.

She added that the £250,000 moved from the CAF housing capital scheme was linked to work to “specifically tackle issues of damp and mould in council properties, in line with new regulatory requirements”.

The cabinet member also referenced estimates published in cabinet documents around the amount of funding council wards would receive.

“It is important to note that the funding of almost £28,000 to every ward in South Tyneside for environmental capital improvements,” Cllr Carter added.

“There is almost £14,500 per ward for local neighbourhood improvements which is exactly the same as previous years.

“The change to CAF funding being proposed this year is to allocate an additional £250,000 to the council’s Healthy Homes programme which will specifically tackle issues of damp and mould in council properties, in line with new regulatory requirements.

“In addition, the council agreed investment into council housing of £25 million over the next five years.

“We are still working in an extremely tight financial envelope with £13.1 million to save this year whilst continuing to deliver hundreds of services to thousands of residents across the borough which is well documented.”

South Tyneside Council’s cabinet agreed the latest CAF funding arrangements for 2025/26 at a meeting on Wednesday, March 19, 2025, at The Word in South Shields.

More information can be found via South Tyneside Council’s website.