Gateshead Council warns of £8m financial blackhole as council tax set to rise

Gateshead Council is going through an £8m blackhole within the subsequent financial yr, a brand new doc has revealed.

The native authority could have to save £8.117m within the coming financial yr, which might rise to £54.8m over the subsequent 5 years.

To do that it has provide you with an exhaustive listing of proposed adjustments to its frontline and administrative companies in a bid to save money.

A report set to be heard by the authority’s cupboard on Tuesday revealed that council tax could be going up by 4.99%, with 3% of that earmarked for grownup social care.

The enhance equates to a weekly rise of £1.17 for a Band A property and £1.75 for a property in Band D.

The report stated the hike, anticipated to elevate an extra £4.8m, is required as a end result of spiralling prices and swinging cuts to funding.

It stated: “A mixture of continued price pressures and important funding reductions has left the council with little alternative however to enhance council tax to defend the supply of important council companies to the residents of Gateshead. ”

However, in December, the authority’s cupboard agreed to lengthen the council tax assist scheme, which signifies that some 12,300 of the poorest working age households pay not more than 8.5%.

The authority desires to slash £1.2m from its price range for public well being and well-being.

It is known that the council is finishing up a evaluation these companies.

Part of this will probably be a evaluation of numerous companies together with sport and leisure, occasions, libraries, arts, heritage, allotments, neighborhood security and public well being companies.

This might embrace “reconfiguring” its arts crew and reviewing its neighborhood security crew.

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The authority is asking residents to inform it how they at the moment use well being and well-being companies.

This info will probably be used when growing additional proposals later within the yr, which will probably be extra detailed and can want additional session. The council admitted it doesn’t know at this stage if there will probably be job losses.

Meanwhile, it might additionally save £300,000 by closing one of its three Promoting Independence Centres (PICs).

Currently the authority has centres in Birtley, Low Fell, and Felling.

Councillors are being requested to decide to shut one of the centres, it has not been agreed which one is probably going to shut. All the centres will probably be assessed after which a call will probably be made.

And the council might save £130,000 by scrapping its thrive fund, which offers grants to small neighborhood organisations.

The authority hopes to save £200,000 by rising numbers of “in home” foster carers and £250,000 by rising its “shared lives” service the place adults in want of care get this offered in their very own properties.

The council stated rather a lot of these financial savings will come from streamlining how it’s administrated, for instance it might save £50,000 by lowering the mileage price range for its workers.

It might additionally save £50,000 by lowering the quantity of printing it does and one other £32,000 by getting rid of its backup web connection.

The council might additionally save £60,000 by trying into digital billing for council tax and advantages.

The council’s cupboard will hear the price range proposals at a gathering on Tuesday.

If it approves them they are going to be voted on at a full council assembly on Thursday.



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