Stockton Council is set to raise council tax by 4.95% and borrow £20m to address a significant funding gap, impacting local services and finances.
The budget will be discussed at the next cabinet meeting on February 10. It will then go to a full council meeting on February 19. The tax increase includes a 2.95% core rise and a 2% levy for adult social care.
The council is facing a £7.4 million overspend this year, which is more than they expected. Most of this overspend is due to high costs in children’s services.
To fill this gap, the council plans to use reserves, including £1.8 million from public health funds. However, they need to be careful not to overspend in the future and must 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 investing now will help save money later and improve services.
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 £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.
The council is also looking to save money by keeping children in care locally instead of sending them elsewhere. They need to find an additional £2.25 million in savings over the next two years.
The report highlights that many councils are facing increased demand for care services, which puts pressure on resources. If this trend continues, financial pressures may worsen.
The council emphasizes the importance of focusing on prevention and innovation to reduce demand for services. They will need to invest in measures to address climate change as well.
Rising costs are expected in various areas, including wages and social care. However, the council anticipates receiving nearly £8 million in government grants and an additional £2 million from regeneration.
Despite these challenges, the council expects a £2.4 million budget gap next year, which could grow to £6.5 million by 2027-28.
Council leader Bob Cook stated that they are in a better position than many other councils due to their careful management. They are focusing on high-spend areas to reduce costs while improving services.
They are also working to recruit more foster carers and help children stay with their families when possible. New technology is being used to improve adult social care services.
The council is making progress and has already achieved over half of the savings needed. They are aware that demand for services will continue to rise, so they must keep working on their transformation program.
Their goal is to ensure a bright future for everyone in Stockton-on-Tees, making it a great place to live, work, and play.
