South Tyneside Council secures extra funding but major budget pressures remain
South Tyneside Council has welcomed additional funding.
The local authority has been awarded additional funding via the Final Local Government Finance Settlement following sustained lobbying to highlight South Tyneside’s financial pressures.
The extra support includes an increase to the Recovery Grant, which is targeted at areas that faced the most significant funding reductions over the last 15 years.
Despite being awarded the extra money, South Tyneside Council has stressed that its overall financial position remains extremely challenging and that it doesn’t change the proposals that are currently on the table in the Medium-Term Financial Plan (MTFP).
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Cllr Tracey Dixon, Leader of South Tyneside Council, has welcomed the additional funding but stated that she will continue to lobby the government for a fairer distribution of resources.
She said: “I, along with council Officers, have lobbied for a fairer settlement. We have fought tirelessly to make sure the voices of South Tyneside people are heard loud and clear in Westminster.
“For too long, communities like ours, with high levels of need, have been expected to do more with less. This additional funding is welcome, and it is a direct result of the case we have made on behalf of our residents.
“But I want to be absolutely honest, while this is a step forward, it does not solve the challenges we face.
“Demand for vital services continues to grow, and our core funding is forecast to increase slightly but not at the level that our costs are expected to increase.
“We still need to save £11.8 million next year, and our financial pressures remain significant.
“What this uplift does give us is the ability to re-build our reserve levels, a crucial safety net that protects our services and our most vulnerable people in times of crisis. Reserves are not a luxury; they are a necessity for maintaining our financial resilience and good financial management.
“I will continue this fight. I will keep pressing the Government, working with our regional partners, and standing up for the people of South Tyneside.
“We deserve a funding system that recognises the reality of delivering services in areas of high need, and I will not stop until we get a fairer deal.”
The additional funding means that South Tyneside will receive an extra £3.3 million next year, rising to £4.3 million in 2027/28 and £6.0 million in 2028/29.
It means that the Council’s spending power over the three-year period rises from 4.8% to 8.6%, offering some short-term relief in what remains a very challenging financial climate.
Emma Lewell, the MP for South Shields, has also welcomed the funding and called for the funding to be spent in the best interests of residents in the borough.
She commented: “I welcome the much-needed boost to local funding given to South Tyneside Council in the updated financial settlement from the Government’s Fair Funding Review.
“This is the result of consistent discussions with the Government after the initial offer was wholly insufficient.
“I am pleased that they have listened and increased the offer for our area to £19 million.
“My constituents rely on our Council for a range of services such as social care; SEND support; housing and community spaces, amongst other things.
“The Government have acted on my concerns, now I will work tirelessly to ensure that these funds are spent wisely and in the best interests of my constituents.”
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