NORTHUMBERLAND residents can expect council tax rises and spending cuts in the coming year after the county council published its formal budget ahead of a meeting next week.
Documents acknowledge that the council continues to face a “shortfall in funding” when compared to spending demands, meaning it must annually review “priorities” to address this.
In the run-up to the budget, council leader Glen Sanderson has repeatedly insisted there will be no cuts to frontline services.
READ MORE: Cash incentives offered to new nursery workers to boost staff numbers
However, a number of “efficiencies” are proposed as part of the financial plan for the coming year. A total of £31.1 million is earmarked as savings by the end of the medium-term financial plan (MTFP) in 2028, including £10.9 million in 2024/25.
The majority of the budget remains unchanged from the draft proposals that were presented to the public and councillors at a series of meetings across the county last month.
It also includes confirmation that residents will see their council tax rise by 2.99 per cent, which had been expected but was not explicitly stated in the draft proposals.
The proposed efficiencies for this year includes shaving £3.63 million from adult social care, with the vast majority of this (£3 million) coming from “care management savings” by reviewing individual packages of care.
A similar saving was proposed in the current year’s budget, with social care director Neil Bradley confirming at last month’s budget scrutiny meeting that this target had been met.
Adult social care funding will in turn be boosted by a 2 per cent increase on the adult social care precept part of residents’ council tax bills, as well as £2.92 million extra from the Government.
However, officers last month that these increases “would not touch the sides” in terms of the overall pressures faced by social care budgets.
The deputy leader of the council, Richard Wearmouth, explained that the majority of efficiencies would be achieved via the council’s ongoing BEST programme.
The project is looking to make services more modern and efficient in order to save money, with £12.4 million worth of savings identified by the end of the MTFP.
Concerns have also been raised about the council’s ongoing use of reserves to fund its “ambitious” capital programme, with opposition councillors from both Labour and the Green Party questioning leading Conservative councillors on the issue.
Budget documents show the council will utilise a total of £28.96 million of reserves for “non-recurrent items in 2024/25.
The council aims to hold between 5 per cent (£46.2 million) and 7.5 per cent (£69.63 million) of the total revenue budget in the general reserve by the end of 2024/25. Documents suggest the £50.96 million currently held in the general reserve will not be touched by the end of the MFTP.
However, by the same time, the council’s total reserves and provisions is estimated to fall from £298.32 million to £197.32 million. When the Conservative administration came to power in 2017, the council had reserves of £339.4 million.
The capital programme meanwhile will see additional revenue costs of £19 million in 24//25, £12.6 million in 25/26 and £6 million in 26/27 as previously agreed projects are hit by inflation.
Members of the ruling cabinet will consider the report next Tuesday before making formal recommendations to full council. All 67 members will then have the opportunity to vote on the proposals later this month.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here