Council tax set to rise to ease funding crisis

Further strain on South Tyneside Council’s already stretched budget. Credit: PA

South Tyneside Council bosses have revealed that demand pressures in adult social care are placing further strain on the council’s already stretched budget.

New research by the Institute of Fiscal Studies has confirmed that South Tyneside is the third hardest hit council in the country.

Despite delivering £126m of cuts over the last seven years the council is being hit with a further financial blow. It will have to find another £19m worth of savings in 2017- 2018 and even more in future years.

Councillor Iain Malcolm, Leader of South Tyneside Council said:

The council is proposing a 4.95 per cent council tax rise in the coming year, around 87p for Band A households. This is made up of a 1.95 per cent council tax increase and a 3 per cent adult social care levy.

The Government has permitted councils to add a 3 per cent increase in council tax bills specifically for adult social care.

South Tyneside is facing significant demographic pressures.

The number of residents over 85 years old is expected to double in the next 20 years. This places huge pressure upon services such as adult social care.

Budget proposals will be put forward to South Tyneside Council’s Cabinet on 8 February and ultimately Full Borough Council for consideration on 23 February 2017.