Council leaders agree on budget with council tax rise. £20m borrowing for ‘invest to save’ plans. Full vote on February 19th.
Stockton Council’s cabinet approved the budget, including the tax plans, which extend until 2028. The full council is scheduled to vote on the plan on February 19th.
The council faces a £7.4m overspend, primarily due to rising costs in children’s services. To address this, they will draw upon council reserves.
The proposed council tax rise is 4.95%, comprising a 2.95% core increase and a 2% levy to fund adult social care. This means Band A homes will pay an additional £1.23 per week.
The council anticipates a £9m budget gap by 2027-8, but the “Powering Our Futures” initiative aims to save £5.8m. Furthermore, they expect £3.5m from businesses involved in plastics production and recycling.
A £20m investment fund, financed through borrowing, aims to support approved “invest to save” schemes. Additionally, £950,000 is proposed for Preston Park, addressing drainage issues that arose during construction.
Clare Harper presented spending changes of £18m, offset by an income and funding increase of nearly £16m. This leaves a £2.4m gap in 2025-6, which is anticipated to rise to £6.5m by 2027-8.
Councillor Bob Cook discussed funding, mentioning a £3.8m recovery grant. He noted that the government is exploring various funding solutions, including considering deprivation and evaluating the council tax base, as Stockton often loses out due to a high proportion of Band A properties. The government added some extra money this year.
However, Stockton still needs to raise taxes to balance the budget, as a 1% reduction necessitates £1.2m in savings. This year’s costs are covered by council balances, with the aim of balancing budgets for both the next year and the following year.
The transformation program has generated savings incorporated into this year’s and next year’s budgets. This team changed services and lowered costs.
A new children’s home is opening in Billingham, expected to save over £1m yearly. However, the need to care for six more young people has added another £1m in costs.
The council is actively working to address overspending in service areas, with officers prioritizing those exhibiting the most significant overruns. Cook wants to ensure services fit residents’ needs, and make the services ready for the future. The government provided extra funds.