South Tyneside Council budget: leaders admit 'many cuts' and tax rises - but they haven't lost faith
Council plans for millions of pounds of cost savings and another council tax rise in South Tyneside have taken a step closer to becoming a reality, following a decision by senior councillors.
South Tyneside Council’s Labour cabinet, at a meeting this week, backed budget plans for 2025/26 as part of the borough’s medium-term financial plan.
The local authority has proposed council tax increases in recent years to keep council services running, and has seen more than half its Central Government funding slashed since 2010.
Town hall finance chiefs have previously called for more sustainable funding from the Government to support local councils and are hopeful that longer-term Government funding settlements from 2026/27 onwards will help councils with financial planning.
Despite pressures on council budgets and the large savings package proposed in South Tyneside, borough bosses stressed they would safeguard key services and make sure that “limited” funds and resources are distributed fairly to support those who need it the most, along with work to regenerate the borough and to drive investment and jobs.
Planned capital investment is said to support the five core ambitions in the council’s 20-year vision for residents in South Tyneside to be financially secure, healthy and well throughout their lives, connected to jobs, skills, and learning, part of strong communities while targeting support to make things fairer.
Upgrades to coastal cycling and walking routes, work to upgrade and expand the borough’s electric vehicle charging infrastructure, extra care and supported living services, new children’s homes, improvements to existing playing pitches, continued investment in council homes and support for major plans to relocate South Tyneside College into South Shields town centre are just some of the capital projects proposed.
South Tyneside Council is still expected to have one of the lowest council tax levels across the North East and the council will support around 12,500 working age people through its council tax reduction scheme.
The final bill issued by the council also includes separate amounts levied by other statutory bodies towards fire and rescue services and police and the final ‘precepts’ will be confirmed this month.
At a meeting on Wednesday (February 5, 2025) at South Shields Town Hall, South Tyneside Council’s Labour cabinet endorsed the budget and spending plans will now go before all councillors for decision at a crunch meeting later this month.
Councillor Jim Foreman, cabinet member for housing and community safety, introduced the report on the medium-term financial plan and said spending plans for the coming year included “some really difficult decisions”.
Although it was noted that inflation had reduced across the economy in recent months, the senior councillor said there were still impacts on the local government sector around increases in the National Living Wage, Employers’ National Insurance contributions and other service delivery contracts.
Continued demand on adult social care services in South Tyneside was also noted as a “significant pressure”, particularly around hospital discharges, along with increased demand in children’s services and the increased cost of placements.
Cllr Foreman said council spending was aligned around the council’s core ambitions, including “targeting support to make things fairer”, and that the council had attracted millions of pounds of external funding for the borough despite the “challenging financial landscape”.
“This means we have been able to set our programme of capital projects that will make a difference for our residents,” he added.
“This includes new social care facilities, investment in our roads, economic growth at the International Advanced Manufacturing Park, regeneration of Holborn riverside and our town centres and enabling a new Tyne Coast College campus, whilst also ensuring that our levels of borrowing continue to be prudent, affordable and sustainable and consistent with our revenue budget target to reduce debt as a percentage of the overall budget over the medium term.
“A key objective is that the council remains financially sustainable over both the long and short term whilst realising the ambitions set out in our strategic plan.
“The medium-term financial plan highlights that although progress has been made through recent and planned investments, work will continue to be required as an organisation and with partners to continue delivering for our residents in the borough, and this proposed budget supports that aim.”
Councillor Ruth Berkley, cabinet member for adults, health and independence, said it had been a “very challenging year” for budgets and that demand for adult social care services continues to grow, with around 40 per cent of residents in the borough linked to some form of support.
Cllr Berkley said the council ‘s response aimed to “address the needs of residents in a fair and equitable way in line with our vision and values for the borough”, along with reviewing commissioned public health services contracts to “ensure that we are achieving value for money.”
Councillor Judith Taylor, cabinet member for culture, leisure and the visitor economy, said revenue collected from council tax forms part of the “overall spending pot” for local council services.
This includes maintaining parks and sports centres, libraries and education services, waste collection and disposal, protection of vulnerable children and adults, transport and highway services, administration of local elections, environmental health services and more.
Councillor Paul Dean, cabinet member for voluntary sector, partnerships and equalities, said that due to cost-of-living pressures, the council would “continue to work hand in hand” with the voluntary sector and would “support our residents and businesses to ensure they are sustainable.”
Councillor Margaret Meling, cabinet member for economic growth and transport, noted the council’s ongoing investment into the International Advanced Manufacturing Park near Nissan, a joint project with Sunderland City Council, and described it as a “great success”.
Meanwhile, councillor Ernest Gibson, cabinet member for neighbourhoods and climate change, highlighted other capital investment the council was planning for the coming year.
“I know it has been difficult for lots of members, especially for council officers who have had to make many choices,” he said.
“South Tyneside is only a very small local authority but we’re still delivering and although we have many cuts […] if you look at the report, we haven’t lost faith in the borough.
“We’re still delivering, look at our energy centres with national recognition, cleaner greener environment, we’re going to deliver housing, we’re delivering sustainable transport, we’re looking at the coastal cycle routes, we’re investing in schools and investing in the borough and in education.
“But look further ahead when the college comes, we’re looking at the green agenda and delivering green jobs and prosperity for the town.
“I think officers have done a fantastic job with councillors working together as a team and I think we’re going to get through this for the next few years as a partnership approach.”
Councillor Tracey Dixon, leader of South Tyneside Council, added: “It has been a very challenging year for us with regard to looking at the draft budget proposals.
“I would like to say thank you to all of you for the hard work you have done as cabinet portfolio leads.
“I would also like to put on record thanks to our staff because it is something that we have had to look at in depth and obviously cabinet are extremely grateful to officers for their support as well.”
Following cabinet approval, the medium-term financial plan will be considered by the borough council on Thursday, February 27, 2025.
The council meeting will take place from 6pm at South Shields Town Hall and will be open to the public, as well as being broadcast live via the council’s YouTube channel.
To find out more about the council’s budget, go to www.southtyneside.gov.uk