South Tyneside Council over half a million pounds short in savings, budget report shows
The report to be considered by Cabinet next week shows South Tyneside Council is over half a million short of savings.
South Tyneside Council’s Cabinet to consider first quarter budget report showing the Council is short of £539,000 savings at meeting next week.
The Council has said it is tightening its focus on spending, with Cabinet to consider the Council's first quarter budget monitoring report on September 23.
The report shows £10.580m of the £11.119m savings agreed as part of the 2026/27 budget are currently forecast to be delivered.
This means there is a shortfall of £539,0000, but the Council said the figures show that the vast majority of planned savings are on track despite ongoing financial pressures facing councils across the country.
The report also sets out the action being taken to reduce costs, improve efficiency and make sure public money is spent wisely, while continuing to meet the Council's statutory responsibilities in the face of ongoing financial pressures.
Cabinet will consider a forecast General Fund revenue pressure of £6.406m for the current financial year. The report notes that many of the challenges experienced during 2025/26 are continuing, with rising demand and higher costs continuing to place pressure on council budgets across the country.
Measures already in place include reducing agency staffing, tighter vacancy management, increased scrutiny of discretionary spending, strengthened controls around care placements and transport costs, maximising external funding opportunities and continued delivery of efficiency savings across the organisation.
Agency staffing numbers have reduced by 22 per cent over the past 12 months.
Councillor Susan Sybenga, Lead Member for Finance and Resources, said: "Like councils across the country, we continue to face significant financial pressures driven by rising demand, increasing costs and national funding challenges.
"That means we have a responsibility to make careful decisions, manage taxpayers' money wisely and take action where it is needed to protect the long-term future of the Council.
"We know some of the choices ahead will be difficult.
"We know some of the choices ahead will be difficult. Our focus is on taking responsible action now, strengthening financial control and putting the Council on a more secure footing for the future, while continuing to support residents and deliver the services people rely on
"This report shows that the steps we're taking are making a difference. However, we remain realistic about the challenges ahead and are committed to maintaining a disciplined approach to the Council's finances. We know there is more to do. Failing to maintain this discipline and improve our financial position will increase the risk of needing Government assistance through its Exceptional Financial Support programme, something a number of councils across the country have had to rely upon."
Continuing pressures
The report highlights continuing pressures in areas including adult social care, children's social care, special educational needs and disabilities (SEND), education transport and wider inflationary and demand-led costs, reflecting challenges being experienced across local government nationally.
It also notes that the Council is continuing to review spending, strengthen financial controls and take action to reduce reliance on reserves while maintaining a focus on protecting frontline services and supporting delivery of the Council's ambitions.