Cabinet remains focused on delivering priorities
Generating more income and making best use of its assets are part of next year’s strategy to balance a council’s books.
Newcastle-under-Lyme Borough Council is beginning preparations for its 2024/25 budget while facing increased costs for fuel and energy, from suppliers and contractors, and temporary accommodation for those needing it.
Simon Tagg, Leader of Newcastle-under-Lyme Borough Council, said:
This authority remains financially stable and is in the middle of delivering large-scale once-in-a-generation regeneration projects.
However there is no doubt that rising costs coupled with additional demands for services is putting pressure on every council in the country.
Clearly we have to use our resources efficiently and generate as much income as possible.
We have a good track record since 2018 of making £10.1 million of savings from council budgets while at the same time improving key services such as recycling, and investing across the borough on projects such as the refurbishment of Kidsgrove Sports Centre.”
Before the budget process for 2024/25 begins in detail a report to be considered by the Council’s Cabinet anticipates £2.75 million more will be needed on top of the current year’s £56 million budget, purely to deal with increasing costs and greater demand for services.
Planning includes for anticipated pay awards settled nationally, the increased cost of borrowing and the rising costs of regeneration projects for which a fixed sum was awarded by national Government prior to recent increased inflation.
Borough councils are not allowed to borrow to balance the books.
One of the biggest current pressures is increasing demand by families seeking short-term help after becoming homeless.
In June this year 18 families needed short-term support, with the figure rising to 28 families by July.
Stephen Sweeney, Deputy Leader of Newcastle-under-Lyme Borough Council and Cabinet member for Finance, Town Centres and Growth, said:
This year we set aside £600,000 but spent £850,000 on supporting families this way, so next year we’re allocating an additional half-a-million pounds to help people when they’re most vulnerable.
Providing short-term accommodation for a family of four could cost in the region of £900 a week, while we can only reclaim £140 from the Department of Work and Pensions.”
He added:
Although we work hard to balance budgets while supporting residents, providing investment and maintaining services in our town centres and neighbourhoods, a realistic level of support from central Government is essential for meeting the many and multiplying demands being placed upon us and our residents.
We will be writing to MPs whose constituencies include this Borough asking them to argue the case for more funding to meet the demand created by the Cost of Living crisis, soaring fuel and energy costs and inflation.”