Provisional council tax confirmed

31 January 2024

The Government announced last week that it was providing more funding for councils to help support unfunded cost pressures in children's social care.

Sunderland City Council's Cabinet heard at its meeting today (Wednesday 31 January) in City Hall that further details on what Sunderland could receive are still awaited.

News on the wait came as the Cabinet backed a Sunderland City Council Tax increase of 4.99 (five) per cent, which includes a two per cent social care precept to help pay for services to elderly and vulnerable people.

The remaining 2.99 per cent of the proposed council tax increase helps fund around 600 other day to day services such as recycling and waste collection, parks, or enforcement.

The council tax proposal now goes to the full council meeting on Wednesday 28 February.

It represents an increase of £1.05p a week for a Band A property (more Band details are below). Details on the final proposals from the Police and Crime Commission and Tyne and Wear Fire Rescue Authority have still to be confirmed.

Speaking at the meeting, City Council Cabinet Secretary Councillor Paul Stewart said: "While news of the funding for social care is welcomed, further funding is still required from Government to support councils across the medium term."

Like other councils, Sunderland's adult and children's social care and homelessness services are experiencing rising demand and major cost pressures. 

In November, the council's three political group leaders wrote to the Chancellor of the Exchequer outlining their concerns over budgets and spending pressures.

To help balance the budget, the council is ready to use £9m of reserves and introduce nearly £7m (£6.673m) of savings and efficiencies. The savings proposals include staffing reviews where vacant posts are not filled, plus reviews of fees and charges, and reductions in some service expenditure.

Cllr Stewart said: "The council continues to do its best to protect residents from the impact of the Government's austerity measures that have been in place since 2010. The compound impact of the Government's significant and disproportionate funding reductions in previous years, combined with inflationary and social care pressures, means we are once again faced with very difficult decisions.

"Raising council tax remains a difficult decision for all councils. If we do not raise council tax, we will need to cut services and reduce our investment into key priority areas. 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 increase is expected to raise £7.5m. However, the council tax only helps to finance around £16 (16 per cent) of every £100 in the council's services budget with the majority of funding coming from Government grants that are not keeping up with demand and costs.

This year's gross expenditure budget for day to day services was £792.5m including £225m (more than a quarter, 28 per cent) going towards adult social care. Ten years ago the adult social care budget was £115.8m and 17 per cent of the council's gross expenditure budget.

Full budget report is here: Revenue budget and proposed Council Tax