Council sets out ambitious budget plan

A North East local authority has outlined its “most transformative budget in more than a decade” while setting out how it will balance spending over the coming years.

Newcastle City Council has published its Medium-Term Financial Plan (MTFP), which pledges funding for highways, play areas, culture and neighbourhood services while detailing the savings required to stabilise future finances. 

The authority must reduce its spending by £8 million next year and by just over £40 million across the next three years, reflecting the growing pressures facing councils nationwide as demand for social care and SEND support continues to rise.

Alongside savings, officials say the council will prioritise investment in the services that residents value most, as well as improve internal efficiency. 

A new Change and Innovation Programme will focus on using technology, reducing third-party spend and redesigning services to deliver long-term savings.

Councillor Karen Kilgour, leader of Newcastle City Council, who described the budget as “the most ambitious in well over a decade,” said: “I spoke publicly after the Chancellor’s Autumn Budget about my disappointment that our council will not benefit more from the Government’s new funding formulas.

“We have a long history of prudent financial management here in Newcastle that means our city is not in as bad a financial position as many other areas.

“However, I have told Government that the current funding is not sustainable long term and I will continue to fight for residents in this city.

“The return of multi-year settlements is positive and that will lay the foundation for the most ambitious MTFP we have presented in well over a decade.

“This is a budget of investment in highways repairs, neighbourhood services, play areas and services that benefit the most vulnerable in our community.

“It will also protect our investment in culture to continue to deliver events such as the Mercury Prize and MOBOs, providing a platform to young creatives and supercharge our economy.”

The plan proposes £328 million of net spend on day-to-day services and £134 million for capital projects, including highways, housing and schools. 

A proposed Council Tax rise, including the adult social care precept, would generate around £8 million to support transformation work and protect frontline provision.

Councillor Kilgour added: “The long-term financial stability means we can instead look to deliver efficiencies through a three-year transformation programme called Change and Innovation: Newcastle.

“It is about cutting waste, improving efficiency and re-designing our services so that we can deliver a higher quality service at better value for money to the taxpayer.

“Whether that is investing in services such as SEND transport provision to ensure long-term savings or making use of technology to streamline how we do business.

“It is a budget for the people of Newcastle. 

“It is a budget that ensures we don’t just deliver our statutory responsibilities, but we build a city where every resident can thrive.”

The Cabinet is expected to approve the plan on December 15, ahead of a five-week public consultation, beginning the following day. 

The final budget will go before full council in March.

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