Stockton Council to Increase Council Tax by 4.95% and Borrow £20m
Stockton Council plans a 4.95% tax hike and £20m borrowing to address a £7.4m funding gap, impacting local services and budgets.
Stockton, Council Tax, Budget, Funding Gap, Children’s Services
The proposed tax increase is just below the 5% limit. It includes a 2.95% core tax rise and a 2% levy for adult social care. For a Band A home, this means an extra £1.23 a week.
The council is facing a £7.4 million overspend this year. This is more than they expected just two months ago. Most of the overspend comes from children’s services, which are costing more than anticipated.
To fill this gap, the council plans to use reserves, including £1.8 million from public health funds. However, they warn that they need to avoid overspending in the future and rebuild their reserves.
Looking ahead, the council is trying to address an £8.7 million financial gap over the next few years. They believe that spending money now can help save money later by making services more efficient.
They want to change £6 million borrowing for children’s services into a £20 million investment fund. This fund will support various projects that can save money in the long run.
The council also plans to borrow an additional £950,000 for improvements at Preston Park Museum. They expect to receive £3.5 million from businesses that produce plastics to help with waste services.
Inflation is affecting the council’s finances, making it harder to maintain essential services. They are already saving £4.6 million by finding new ways to work and keeping children in care locally.
Despite these efforts, the council still needs to find £2.25 million in savings over the next two years. They anticipate more financial strain due to rising demand for care services.
The council emphasizes the importance of focusing on prevention and innovation. They plan to invest in measures to reduce carbon emissions and adapt to climate change.
They expect rising costs in various areas, including wages and social care. However, they also anticipate nearly £8 million in government grants and an additional £2 million from regeneration.
The council is still looking at a £2.4 million budget gap next year, which could grow to £6.5 million by 2027-28.
Council leader Bob Cook stated that despite challenges, they are in a better position than many other councils. Their transformation program aims to identify high-spend areas and reduce costs while improving services.
They are focusing on children’s services to bring kids back into the borough instead of using expensive placements. They are also working to help adults live independently for longer.
The council is actively recruiting more foster carers and using new technology to improve adult social care. They are already seeing savings from these new methods.
Cook noted that while they are making progress, demand for services will continue to rise. They must keep working on their transformation program to stay within budget.
Their goal remains to provide a bright future for everyone in Stockton-on-Tees, a great place to live, work, and play.