Newcastle needs to save £13 million next year

Newcastle City Council will need to save over £13 million next year and raise council tax in order to set a balanced budget.

This means the city will have lost £282 million by 2020.

How the money could be saved is set out in a series of proposals in the report Newcastle 2020: Investing in a fairer future - One year one.

The draft budget is the second of a three-year plan that the council published last year.

It proposes a 1.95 per cent rise in council tax and three per cent rise in the government’s social care precept.

About 40 full-time jobs will go, although the council will work closely with trade unions to try and avoid compulsory redundancies.

In order to meet its savings on £13.3 million the council proposes to, among other things: cut its contribution to Tyne and Wear Archives & Museums by £150,000; increase garden waste charges from £1 to £2 per collection; reduce its contribution to Newcastle Gateshead Initiative by £40,000; and save £2.6 million by developing new ways of caring for adults with complex needs.

However, it will continue to invest in the city with an ambitious £380 million capital investment programme which will see: the construction of 1,000 affordable new homes; 150 specialist homes for older people and those with disabilities and complex needs; a new centre in West Denton for people with learning difficulties and/or autism to support people living outside the city; shared services to deliver savings on electronic transactions; and hosting major events such as the Great Exhibition of the North in 2018 which will bring huge economic boost to the economy.

Nick Forbes, leader of Newcastle City Council, said: “For the last seven years we have suffered some of the highest cuts in the country, and sadly next year will be no different.

“We are an ambitious council. Our transformation of services and good financial stewardship have helped minimise the impact, but hovernment cuts are such that the decisions we have to make will still be very painful.

“Add to that the uncertainty of Brexit, public sector pay and the misery of welfare reform and it’s not hard to see why so many people are worried about the future.

“We will secure the future of services and facilities by exploring new models of delivery such as shared services; a charitable trust for our parks and investing in new affordable housing.

“The future will be tough, but we have a plan, and ambitions to unlock new investment through devolution which will keep the city in a strong position.”