Sunderland set for council tax rise and spending cuts as council warns of funding gap

Budgets for day-to-day Sunderland City Council services, plus a provisional council tax increase, are set to be examined by city leaders next week.
Council tax bills are set to rise again in Sunderland.Council tax bills are set to rise again in Sunderland.
Council tax bills are set to rise again in Sunderland.

The city council’s cabinet meeting on Tuesday, February 8, is looking at a possible council tax increase of 2.99%.

This is in line with recent Government assumptions that councils will increase core council tax by 1.99% for frontline services in 2022/23 as well as a 1% precept ringfenced for adult social care.

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Subject to the cabinet decision and then a full council meeting in early-March, council chiefs say the majority of Sunderland households would be paying less than £1 a week extra next year towards city services.

To balance the books in 2022/23, the council needs to make savings of £5.821million, along with the use of reserves.

As part of its savings and efficiency reviews to help meet the budget gap, up to 60 full-time equivalent staff could be made redundant.

However this will not affect frontline staff and is part of a ‘corporate support review’ which aims to save around £2million in 2022/23.

It is anticipated that Sunderland’s council tax will remain the lowest in the North East region, with further details tabled at the cabinet meeting.

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With demand for adult social care services expected to rise further in coming years, the proposed 1% social care precept would also raise around £3million.

Councillor Graeme Miller, leader of Sunderland City Council, said: “The Government expects that we must pass a council tax increase onto our residents.

“Because of government budget cuts and continued uncertainty on funding, and as demand increases for many services, such as adult social care, we have a budget gap of nearly £19million.

“This gap is being met with further savings and efficiencies and using £5million of reserves.

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“We are planning ‘significant’ investment in both adults and children’s social care to support the rising demand and cost pressures.

“Jointly these areas require budget increases of over £14.7million in 2022/23 to meet these pressures.

“The proposed budget also allows investment in key services to support our communities.”

Revenue budget proposals for 2022/23 include additional funding to support environmental services delivery and investment in waste collection and recycling through reviewing the arrangements for replacement bins and bulky waste.

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Elsewhere, the budget allows for the continuation of free pest control services for city residents into next year – an initiative introduced by the council in October 2021 for a 12-month period.

Funding is also being proposed to support the council’s capital investment proposals to support the delivery of the City Plan.

Council leader Cllr Graeme Miller added: “We have asked residents what they want and need, and we are responding to what they have told us.

“We will continue to listen through undertaking a residents’ survey during 2022/23.

“The council has done its best to protect residents from the impact of the Government’s austerity measures since 2010.

“The compound impact of the Government’s significant and disproportionate funding reductions in previous years, combined with unavoidable unfunded cost pressures, means we are once again faced with very difficult decisions.

“Raising council tax is one of those difficult decisions.

“If we do not raise the tax, we will need to cut services and reduce our investment into key priority areas.

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“That would mean cuts in services to those most vulnerable in our communities and to the services which residents tell us are a high priority.”

The council’s budget meeting is on Wednesday, March 2, when the budget and council tax will be formally approved.

Formal decisions of the other precepting bodies, such as the police and fire service, are still awaited with further details due at next week’s cabinet meeting.

The cabinet meeting is scheduled to take place at City Hall on February 8 from 10am.

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