Gateshead Council Approves 4.99% Tax Rise Amid ‘Burden’ on Residents

Gateshead council tax will increase by 4.99% this year. Councillors approved the rise, despite knowing it impacts residents. The council will use £11 million from reserves, which helps balance their budget for 2025/26.

Council leader Martin Gannon promised no frontline service cuts, even after leisure centre closures and government funding decreased by 63% since 2010. The funding equates to £1,046 less per person, amid rising costs and increased social care demands.

Gannon stated Gateshead got a better deal after the election, with funding increasing by 8% in 2025/26. Still, they face a £35 million shortfall in five years. They need long-term support from the government to plan a good future.

A recent survey showed 72% opposed the tax increase, including 2% for adult social care. Gannon understands the burden on residents greatly since many local governments are affected by this issue.

Gannon stated that they must balance the budget and consider vulnerable residents’ needs, and that is against the desires of most of Gateshead. The council needs £2.1 million in savings and plans £2.4 million savings from care changes.

They will provide social care at home more often instead of residential facilities. Gannon also promised £7.7 million toward fixing potholes, ensuring new equipment will improve the quality of roads. GLL will manage leisure centers from April.

Ron Beadle, a Liberal Democrat, criticized the council, noting the repeated 4.99% tax rise because, despite promises against tax increases, it still happened. He thinks the council delays hard choices on the economy and gambles on future Treasury support.

Beadle highlighted challenges, and backed the rise as better than service cuts. Gateshead needs to regenerate its town center a lot, with focus on the high street and A167 flyover lacking progress. He criticized the lack of progress of the new conference center.

Here’s how bills change with the 4.99% increase: Band A: £1,718.78; Band B: £2,005.24; Band C: £2,291.71; Band D: £2,578.17; Band E: £3,151.10; Band F: £3,724.02; Band G: £4,296.95; Band H: £5,156.34.

About 12,000 low-income homes pay only 8.5% of their bill under the council tax support scheme.