Tax increase approved. Conservatives honor promise to keep rise under 2 percent, despite Labour opposition.
The tax increase is below the allowed maximum, above which a referendum would be needed. Labour opposed the budget, questioning why the tax was going up. They abstained during the council meeting vote.
A Band D household will pay £223.04, which is the Newcastle borough council tax for 2025/26, up £4.35 from this year. Most tax goes to Staffordshire County Council, which sets its tax rates separately. The budget also includes savings to help fill a £1.89 million gap.
Council leader Simon Tagg talked about protecting services like waste, recycling, and parks. He said street upkeep will also continue, as residents identified these as priorities. These services will avoid cuts.
Tagg stated the tax rise is low, at 1.99 percent for the fourth year, which is less than current inflation. It’s about 7p extra weekly for most, and he said they keep their 2022 pledge. He especially notes pensioners losing winter fuel, suggesting this tax relief is needed.
Tagg also mentioned a balanced budget that provides improvements to services. He also highlighted the focus on town center regeneration, despite the government cutting four percent of funding and National Insurance increasing in cost. He said the cuts equal £500,000 in total.
Budget savings include staffing efficiencies of £156,000. They also expect £235,000 from leisure, parking and waste. £250,000 will go to the Civic Growth Fund to help investment and reduce future spending.
Tagg said the budget adds to council reserves, which should reach almost £6 million. He said this is due to economic uncertainty blaming Chancellor Rachel Reeves’ budget.
Labour councilors questioned paying more tax with money in reserves. Labour leader Dave Jones voiced reservations about the consistent 1.99 percent tax rise. He wondered how tax relief impacts pensioners without fuel funds. Jones called the council tax high and blamed the Conservatives’ 17 percent increase.