Council approves a 4.99% tax rise in April, citing financial pressures and the need to maintain services. Vote was 32-16 with 3 abstentions.
Labour and Lib Dem votes ensured budget passage. Thirty-two voted yes; sixteen opposed; three abstained.
Chris Massey called it a “difficult budget” and cited the “challenging national environment”. He noted council tax is a key income source and that the increase aligns with national trends, citing higher increases elsewhere.
Council tax will increase for 2025/26, with the adult social care portion rising as well. Band D houses will pay £1.82 extra weekly, which is £94.77 more per year. Band A homes with support pay 21p more weekly, totaling £11.06 yearly.
Planned savings for 2025/26 total £8.8 million, including selling £3.6 million in assets. They expect £2.9 million from children’s care, and a review of transport should save £1 million.
The council faces a £6.7 million year-end shortfall and is using reserves to cover it. Reserves are nearly gone, and this option may not exist in 2025/26.
The plan has £30.7 million for services next year to meet demand and cost pressures. The total investment is almost £73 million for five years, with capital spending at £219 million by 2030. This includes roads, towns, IT, and waste.
The council owes over £204 million long-term. New business rates could generate £27-32 million from Teesside freeport sites over three years. Massey calls this a cautious estimate.
Carolyn Curr opposed the tax rise, saying the council overpays for things and that procurement processes need change. She believes taxpayers are left to fill the funding gaps. Curr thinks councils are “sleepwalking” and residential care is becoming a “cartel.”
Sickness absence costs £2 million yearly, and the council failed to use government support. Curr feels that money could have fought crime and believes things could have been managed better, citing mismanagement of some projects.
Alec Brown stated it is easy to avoid tough choices. He is “proud” of the council’s financial plans and feels they enable future growth now.
Craig Hannaway distrusts council management and thinks some services are failing, citing “Clean and green” as an example. Steve Kay said residents lack money for food and face many cost increases now. They cannot afford another tax hike, and he feels depressed about the nation.
Stuart Smith and Barry Hunt also opposed the plans. Debate got heated, and the mayor threatened to remove people there. Carl Quartermain said services would remain. Adam Brook’s area wasn’t cut at all, which is the first time in ten years.
The Lib Dems gave “reluctant” support to this plan. Jemma Joy believes the council must make cuts and compared the budget situation to a G-string. The comment created chuckles and amusement in the chamber.
Carole Morgan states they must support the budget now to prevent more harm to the community. Without it, things get much worse, services get cut, and taxes double, she says.
The council has very low reserves currently, and statutory services face demand pressures too. Savings and rates growth are needed for the budget. If handled well, reform could stabilize finances, and the council will move into a period of growth then.