South Tyneside Council finalises 2019/20 budget in attempt to save millions

South Tyneside Council has agreed its budget for 2019/20.

During a meeting of the Full Council last night (February 28), members said they would continue serving for residents despite continuing budget pressures and a severe reduction in Government support.

This year, the authority is being forced to save another £12m with more to find in future years. This is on top of the £156m already saved and against a backdrop of significantly increased demand for council services in areas such as adult and children’s social care.

The vast majority, some 70 per cent, of the council’s discretionary budget is spent on caring for vulnerable adults and children.

Savings are being implemented due to the continuation of government grant cuts which have been in place since 2010.

Cllr Ed Malcolm, lead member for resources and innovation at South Tyneside Council, said: “The shape and scope of the council is constantly evolving.

“With less money we must be leaner and focused on spending our money where we can make the biggest impact for the people of South Tyneside.

“Since 2010, South Tyneside has had to save a total of £168m. We have already lost almost 40 per cent of real spending power over the last nine years and are in the top three councils worst hit. Of course this means that we cannot simply maintain the status quo.

“What we are trying to do with this budget, and ones that have gone before it, is to mitigate the long term impact for our residents. We have tried to protect vital services, reshape others to meet customer need and increase overall efficiency.”

South Tyneside Council is asking residents to pay a little more in their council tax in 2019/20 to help protect services.

The increase is 3.95 per cent, which is made up of a 2.95 per cent council tax increase and a one per cent adult social care levy - this equates to around 76p per week for Band A households, into which the majority of households fall.

The bill issued by the council includes separate amounts levied by other statutory bodies such as police and fire.

Investment in infrastructure has facilitated economic growth and improving the area. At the Arches, work is underway to increase safety and traffic flow, following on from 2018’s Lindisfarne improvement scheme - which has resulted in a 36 per cent reduction on road traffic casualties.