Council tax rise, cuts and spending plans approved for Sunderland after debate among councillors

This week, councillors voted to approve a budget which includes a council tax rise of 2.99% from April.

This is made up of a 1.99% rise in core council tax and a 1% government levy earmarked for adult social care services in the city, and is below the 5% increase assumed by Government.

As part of the 2023/24 budget, the council will make savings of around £13.3million and use £9million of reserves to help balance the books.

Final council tax bills include charges levied on behalf of Tyne and Wear Fire and Rescue Authority and the Northumbria Police and Crime Commissioner – with both ‘precepts’ increasing this year.

The council tax changes were part of a budget proposed by the council’s Labour Group at a meeting on Wednesday, February 22 at City Hall.

Councillor Graeme Miller, leader of Sunderland City Council, said the package would allow them to continue to “protect and support residents most in need” and push forward with “ambitious social and economic regeneration plans”.

He added “difficult decisions” had to be made to deliver a sustainable budget, exacerbated by the “disproportionate fundings reductions” the council has had to “endure since 2010”.

Cllr Miller, speaking at the meeting, said: “Raising council tax is not a decision we take lightly, especially in these unprecedented times.

“But if we don’t raise council tax now we will need to identify service reductions and not continue with the investment in the development of our city.

“With that in mind we have sought to protect our residents as best we can and we have therefore proposed to raise council tax by 2.99%.”

This includes a rise of 61p per week for a Band A property, with a total of 80,166 properties on Wearside falling into this category, and a rise of 91p per week for an average Band D property.

Cllr Miller added Sunderland’s council tax rate will remain the lowest in Tyne and Wear and the wider North East region providing “strong value for money for residents.”

The budget for 2023/24 includes making pest control call-out services permanently free, along with continuing free replacements for lost or damaged wheelie bins, and offering free bulky waste collections from April.

Additionally an extra £17m would be invested in children’s and adult services to help protect the city’s most vulnerable residents and to meet increasing cost and demand pressures.

Meanwhile £41.7million will be invested into key infrastructure such as quaysides, roads and bridges, plus further acquisitions of vehicles, plant and equipment.

Savings of £13.3million to help provide a balanced budget will come through various “reviews and efficiencies”, such as not recruiting for vacant posts, and changes to contracts, service or facilities charges.

During the budget meeting, amendments to the Labour Group budget were submitted by the city council’s Conservative and Liberal Democrat opposition groups.

The Conservative Group proposed savings of around £2.9million from the council’s day-to-day revenue budget by cutting special responsibility allowances for councillors and abolishing councillors’ expenses.

They also proposed reducing the council’s communications and events budgets and ending the use of chauffeured executive cars for the mayor and cabinet members, amongst other proposals.

The Conservatives said they would redirect this funding to reduce Labour’s Group’s council tax increase by 2%, alongside other proposals ranging from three new park and cemetery wardens and expanded CCTV coverage.

Other suggestions included an expansion of the council’s arborist team to keep grass, trees and bushes tidy, and 100 new litter bins across the city.

They also proposed reducing the budget for the F-Pit redevelopment in Washington by £4.5 million, and reallocating the cash towards an “Anti-Speeding Fund”, road and pavement repairs, and enforcement cameras to tackle school parking issues.

Councillor Antony Mullen, leader of the Conservative Group, said their amendment provided a budget which put “residents’ interests before those of politicians”.

Meanwhile the Liberal Democrats proposed to save £1.9million from the council’s revenue budget through means such as reducing the number of council Area Committees from five to three and cutting basic and special responsibility allowances for councillors.

They would then reduce the proposed council tax rise by 1%, allocate funding for five additional dog wardens and reverse increases in allotment rent and brown bin charges, as well as other proposals.

They also proposed to realign around £12.25million from an existing budget pot to establish a five-year leisure investment strategy for Sunderland and Washington, focusing on public space improvements.

Councillor Niall Hodson, leader of the Wearside Liberal Democrats, said their key priorities were to give residents more “money in their pockets” and to put more funds into “environmental services and our street scene”.

Cllr Miller responded noting the budget “isn’t something we just throw together and put on a desk” and if they accepted either of the amendments it would “damage” what had been put in place with the council’s finance director to navigate the coming years.

He added: “We continue to invest in our city, we will continue to invest to protect the most vulnerable people in our city.

“We will continue to invest in services that our residents tell us are important to them, such as tackling anti-social behaviour and increasing community safety.”

Following debate, both opposition budget amendments failed to win support across the council chamber.

The Labour Group’s budget was eventually agreed by 40 votes to 29.