Member Article

North Tyneside cuts expected to leap to £53m, £9m more than first expected

North Tyneside Council will need to deliver more cuts than first anticipated, over the next three years, with the initial figure of £44m now expected to leap to £53m, due to national government decisions.

The latest news comes in addition to the £43m the Authority has already had to achieve in efficiencies between 2013-2016.

A meeting of the Authority’s Cabinet next week (Monday, August 10) will receive a report detailing the potential impacts of national announcements during the Summer Budget, both on the council coffers, as well as the consequences for borough residents, who will be affected particularly by housing and benefit changes.

And in addition to the year-on-year reductions the Council’s longer term plans will be disrupted with the reduction in social housing rents over the next 30 years resulting in over £400m in lost income for the Authority, forecasts the report.

The Authority’s previous long term plan to address the need for efficiencies for the 2016-2019 financial years, taking account of the already reduced national funding, and increased demand for services from a growing population, had been estimated at £44m.

However, taking account of the Summer Budget announcements, a report due to be presented to the Authority’s Cabinet on Monday (August 10), has revised the estimated savings required to £53m-£56m over the 2016-2019 period.

Elected Mayor, Norma Redfearn said: “Since the Coalition Government’s four-year Spending Review of 2010, and as a result of the one year Spending Review for 2015/16, North Tyneside Council has had to make a significant level of efficiencies every year. Since the 2013-14 financial years, we have already had to make efficiency savings of approximately £43m.

“Following the budget in March, a second National ‘Summer Budget’ in July has included a number of detailed announcements with implications for the financial position of North Tyneside Council.

“Officers have considered the potential financial impact of the various government announcements from the Summer Budget, then the revised General Fund financial position for North Tyneside Council for 2016-2019, and this has resulted in us needing to find an increase of £9m-£11m in the level of savings over the three years and a revised total savings target of between £53m and £56m.”

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