What's happening
Faced with inflation, rising demand for social care and years of Government cuts, Newcastle City Council has some tough decisions to make to balance the books in 2025-26. Since 2010 the council has saved £381m and is forecast to need to save a further £62.8m over the next three years - £21.3m next year rising to £23.5m in 2026-27 and then £18m in 2027-28. The Council's Cabinet met on Tuesday 10 December to consider the proposals and begin a five-week consultation period so the public and partners can give their views.
Our proposal for Council Tax and the Adult Social Care Precept
To set a balanced budget in 2025-2026, we need to increase the amount of income raised through Council Tax. We propose to increase core Council Tax by 2.99%, which will increase income by £4.2 million (apart from any changes to the Council Tax base*), and to use this income to avoid the need to make further reductions to the services we provide beyond those set out in the full budget report.
We also propose to apply the government’s 2% Council Tax Precept for Adult Social Care to help fund the increasing demand for and cost of adult social care. This will generate an additional £2.8 million of Council Tax income (again, excluding any changes to in the Council Tax base).
We also propose to apply the government’s 2% Council Tax Precept for Adult Social Care to help fund the increasing demand for and cost of adult social care. This will generate an additional £2.8 million of Council Tax income (again, excluding any changes to in the Council Tax base).
* The 'Council Tax Base' is a way of calculating the amount of council tax that an local authority can expect to collect during the financial year. It is worked out by adding together the 'relevant amounts' (the number of dwellings) for each Council Tax valuation band (Band A, Band D, and so on), then multiplying the result by the Council's estimate of its collection rate for the year.
What we would like you to do
The full details of this proposal can be found here: Council Tax and the Adult Social Care Precept (PDF). You can give your views by taking part in our short survey at the bottom of this page, and giving us your views on this proposal, and any suggestions you have for how we can save money or generate income. You can also share your thoughts by emailing us at: letstalk@newcastle.gov.uk, and we have also produced a PDF copy of our questions, which can be printed off, completed, and returned to us at: FREEPOST Let’s Talk (this is the full address) if this is easier for you or someone you know:
Our other service proposals, and the budget as a whole
This year we have two other proposals about 1) changes to the reablement service (this is a short-term service that helps people regain the skills and confidence they need to live independently at home), and 2) the school meals service. We also have a survey asking for your views on the budget as a whole, and you can see the Leader of the Council. We would like to hear any comments you have to make specifically about these proposals - click on the links below to give your views.
If you, or someone you know, need an Easy Read version of information about our budget, you can read this here: 2025 2026 Newcastle Council Budget - Easy Read.pdf
People's Budget - our budget simulator
The People's Budget is our online budget simulator, where residents can try out setting their own spending priorities for the city, looking at how we might make savings, generate income, and what to do about whether or not to raise Council Tax and the Adult Social Care Precept. To try it for yourself, click here: People's Budget 2025-2026
What happens next
We will consult on our draft budget proposals from 11 December 2024 until 15 January 2025. In February 2025, Cabinet will be asked to recommend the post-consultation budget to City Council. City Council will debate and vote on the budget at their meeting in March 2025. We will publish the final budget proposals, including a report on the consultation findings, on our website: Newcastle City Council. Thank you for giving us your views.
