Council considers tax hike despite public objections. Budget vote this Thursday. Increase could be 4.99%.
The potential council tax increase is 4.99%. Councils need approval for larger increases, either from a referendum or the government.
Local funding should bring in £170 million, including council tax and business rates. Government funding will add another £147.7 million. The council may also use £11 million from their reserves.
A survey showed opposition to the tax increase: 58% strongly opposed a 2.99% general increase and 14% tended to disagree. 52% strongly opposed the 2% social care increase as well.
The budget report shared reasons for disagreeing. Many felt they got poor value for money, others thought council tax was already high enough, and some worried about their own financial struggles.
The council agreed on tax support for 2025/26. Around 12,000 people will pay little tax, not over 8.5% of their council tax. About 8,000 pensioners will also benefit from schemes.
Here are total council tax amounts in different bands, also including increases for police and fire: Band A is £1,718.78, Band B costs £2,005.24, and Band C is £2,291.71. Band D totals £2,578.17, Band E equals £3,151.10, Band F sums up to £3,724.02, Band G reaches £4,296.95, and Band H is the highest, at £5,156.34.
Council figures claim a budget loss of 56% since 2010. That’s £977 less spent per Gateshead resident.
The council says government funding cuts forced changes. Services got reduced in certain areas, while alternative methods helped maintain other services, with libraries as a major example.
Council Tax is not all their funding; it only covers about 40% of costs.