The government announced on 4th December the cash support that will be given to councils to help pay towards local services. Approximately three quarters of the money spent by councils comes from the government. Gateshead is getting a rise of 2.7% - in other words, an increase of £2.53 million on last year.
The figure does not include government money for schools which, rather confusingly comes via a different government grant. Councils have to hand this money on directly to schools.
How does Gateshead’s cash support compare with other councils? Well, not too well. The average increase in the money the government has given to English councils is 3.8%. Were Gateshead to receive the same increase, it would mean over £1 million extra to pay for the cost of local services.
Costs of services and running the council that are not met by the government have to be paid out of council tax, though some money is raised through charges (eg when using the swimming baths).
Gateshead Council is already warning that “The below average settlement will continue to put pressure on the Council’s budget.” This is another way of saying there may well be some cuts and the council tax rise, as in most previous years, will be as high as the council can get away with.
Across the River Tyne in Lib Dem controlled Newcastle, the council, for the 3rd year in a row, are to set a council tax rise that is at or below the rate of inflation. Newcastle Council is getting the same increase in government cash as Gateshead.
So whilst Liberal Democrats are unhappy with the unfair way the government have treated councils on Tyneside, at least in Newcastle the controlling Lib Dems are not using it as an excuse to bring in inflation busting council tax rises.
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