South Tyneside Council to consider ‘extremely challenging’ 2025/26 financial outturn
South Tyneside Council’s Cabinet is set to consider its financial approach for the years ahead.
South Tyneside Council’s Cabinet is set to consider its provisional financial outturn for 2025/26.
The report will set out the reality facing the local authority as the new administration looks to consider its financial approach for the coming years.
It will provide a clear picture of South Tyneside Council’s position at the end of the last financial year, including a £5.206 million pressure on the General Fund revenue budget and a £1.098 million pressure on the capital programme.
The Housing Revenue Account (HRA), which covers council housing, recorded a £2.058 million surplus.
Extremely challenging financial outlook
At the end of March 2026, South Tyneside Council’s reserves stood at £15.197 million, compared to £23.952 million in the previous year.
The report will also highlight the scale of financial pressures experienced during the year, particularly in services supporting the borough’s most vulnerable residents.
It will outline the significant strain on the Council’s budget due to rising demand in areas such as adult and children’s social care, Special Educational Needs and Disabilities (SEND), and assisted transport.
Despite the extremely challenging outlook, the report also reflects the action taken to manage the pressures.
It sets out the early identification of issues, alongside strengthened financial monitoring and control, helped reduce the overall level of overspending from earlier forecasts.
‘We are under no illusion about the challenges ahead’
Councillor Susan Sybenga, Deputy Leader and Cabinet Lead Member for Finance and Resources at South Tyneside Council, states that the new administration is focused on making responsible decisions to protect essential services while managing the financial pressure.
She said: “This report gives us a clear and honest picture of where we are starting from as a new administration.
“The financial pressures facing the Council are real, and they are not going away. We are under no illusion about the challenges ahead.
“We know that there is rising demand for services, particularly in areas such as social care and SEND, alongside continued cost pressures.
“Councils across the country continue to operate in a very difficult funding environment.
“But this is not just about the challenges – it is about how we respond to them.
“Over the past year, officers across the organisation have worked hard to identify and manage pressures early, and that has made a difference.
“I’d like to acknowledge the ongoing work of officers, our focus now is to build on that. By strengthening financial discipline, making informed decisions and ensuring we are using every pound as effectively as possible.
“As a new administration, we are taking the time to fully understand the Council’s financial position and the work is already under way.
“Our focus is on maintaining strong financial discipline, building on the action already in place, and making responsible decisions to protect essential services and put the Council on the strongest footing possible for the future.”
South Tyneside Council’s Cabinet will consider the report at its meeting on Wednesday, July 1.
The Cabinet will be asked to note the outturn position, approve changes to reserves and agree capital carry forwards into 2026/27.