Newcastle City Council has set a budget for 2024-25 to tackle the cost-of-living crisis. The council will be allocating £281m towards crucial public services and £155m to capital projects such as roads, housing, and schools. In addition to this, measures to reduce subsidies, delete vacant posts, and cut non-essential expenses on contracts were approved, amounting to savings of £14.4m. In increasing charges on various services like garden waste collection, the council also approved a 5% increase in Council Tax, consistent with Government expectations, which will be directed to front-line services. The budget was agreed upon at the Civic Centre last night.
The council is forecasted to face greater financial pressure, and decisions to balance the budget have been challenging. Despite the hindrances, the council will continue to prioritize its residents by protecting essential frontline services and minimizing redundancies. It will also work towards ensuring it is well-governed and manages finances prudently, avoiding the risk of going bankrupt. Part of an inclusive economy, the council will strive to address poverty and inequality while collaborating with the city to promote participation.
As a result of the savings, there will be a reduction in 40 full-time equivalent posts at the council. However, the council will collaborate with trade unions and support employees at risk of redundancy while avoiding compulsory redundancies where possible. A Band D property will have to pay an additional £95.78 per year due to the rises in Council Tax and the Adult Social Care Precept, while a Band A property will pay £63.85 more per year. Over the next three years, the council is expected to save £59.8m.
The council’s major capital projects include £20.5m for improvements to Northumberland Street, £17.7m on a new leisure centre in West Denton, and £10m of enhancements to the Grainger Market. The residents and organizations who participated in this year’s budget consultation were thanked for their input, and the council affirmed its commitment to make responsible decisions for the future in the best interest of its residents.
