Calls to keep council tax rises 'as low as possible' in Sunderland

Sunderland City Council bosses said inflation, combined with rising demand and costs in adult and children’s social care, are continuing to put pressure on budget plans.

Council tax for 2024/25 will be decided in February, however local authority bosses have said current planning is assuming a 4.99% increase “in line with the Government’s direction.”

The rise, which includes a 2.99% core council tax rise and 2% ‘social care precept’, is the maximum allowable under Government regulations.

The latest meeting of the city’s ruling cabinet (on Thursday, October 12) received an update on forecasts and budget planning ahead of 2024/25, along with the financial pressures which are being faced.

Speaking at the meeting, Councillor Paul Edgeworth, leader of the Wearside Liberal Democrats, asked what cabinet will be doing to “try and consider, like we did last year, to keep council tax rises as low as possible.”

He said: “Residents time and time again will be worried about council tax going up and obviously they’ve got their own cost pressures to face as well.”

For the 2023/24 budget in Sunderland there was a 2.99% increase in council tax, which was less than the Government’s assumption that councils could raise the tax by 4.99%.

Cabinet secretary councillor Paul Stewart said discussions around council tax rates will come as part of the budget process ahead of a decision being made early next year and they are “open to suggestions” as part of that.

He added: “Any budget proposals will go to scrutiny which your party will have members on, and I look forward to the suggestions that come forward from scrutiny.”

Forecasts outline the council has a funding gap of nearly £20million for spending on day-to-day services in the next financial year of 2024/2025, reducing to £10.3million after using reserves, and a total gap of more than £51million over the next four years.

Labour’s Cllr Stewart said the scale of the gap “lays bare the continued underfunding of local authorities”.

He said: “It is recognised that given the size of the gap, uncertainty of Government funding and high inflation levels, difficult decisions will need to be made to achieve a balanced budget.

“The combined impact on the council from pay and general inflationary pressures, alongside ongoing demand and increased cost pressures within social care, means the council needs to deliver further significant ongoing savings in the next year and beyond.”

This year the city council agreed a total gross budget of £759.8million for its day-to-day spending, including £201million or more than a quarter of the total budget being used for adult social care.

Ten years ago, in 2013/2014, the budget for adult social care was £114.8million or 17% of the budget.

Sunderland’s council tax, which raises around £16 for every £100 in the services budget, is the lowest in the North East region.Consultation with residents and businesses about next year’s budget is being prepared and due to begin in coming weeks.