A budget to deliver for South Tyneside

Councils provide a whole range of services to the public.

Street lighting, education, ensuring the food you eat meets hygiene standards; ensuring the drinks you buy meet weight and measures standards; planning and licensing services; crematorium services; air quality and refuse collection.

Financially supporting the Police, Fire & Rescue services and the Passenger Transport Authority to name just a few.

All are responsibilities of local Councils.

Yesterday, South Tyneside Council set its budget for the 2009/10 financial year to meet our obligations in providing those services. In so doing we have set the lowest increase (2.87%) for fourteen years and one of the lowest in the country.

No one likes paying tax, but if local councils are to deliver local services which people need and want, then we need to raise the finance to pay for them.

This year we have faced extra pressures on the Councils budget –

·         Adult social care costs have increased by over £3m

·         Fostering and adoption costs have increased by over £1.1m

·         Our energy bills as a council will increase by over £1m

·         We also have general inflationary increases of over £4m.

And finally, 85% of the money your Council spends comes direct from the Government in the form of grants – this year we have received a less than generous settlement from the Government, further adding to budgetary pressures.

Listening and responding

Part of our budget process requires us to discuss our spending plans with local residents, trade unions, the voluntary sector and the council tax payers of the Borough. I want to thank all stakeholders who took the time to give us their views. Some suggestions we have been able to implement this year, others ideas will be considered during the year to examine whether we can include them in next years budget.

There are some areas where as a Council we don’t have a large degree of flexibility – school funding for example, which is nationally determined, or the setting of the rents for Council tenants. The same applies to the setting of rates paid by the local business community.

However, where we do have flexibility, we know that by challenging the way we do things, we can come up with creative and innovative solutions to deliver value for money, modern and flexible services which we believe the community deserves and expects from us.

So what did residents tell us?

Well amongst other things they were clear:

·         That Council Tax should increase by below the rate of inflation

·         That there should be extra spending on  initiatives surrounding the safeguarding children and developing housings services

·         That the Council should continue to look for new ways to deliver value for money

·         That there should be a reduction in the number of copies of the Councils On View magazine

We have listened and the Councils budget agreed yesterday:-

·         Keeps the Council Tax increase below inflation

·         We have reduced the proposed increase for meals at our day care centres and luncheon clubs to 50p

·         The Council’s On View publication will be reduced from 6 to 4 editions and we will undertake a review on how we communicate with the Borough’s residents in future

·         There has been no reduction in the financial support we give to the voluntary sector, particularly important in these difficult times

Car parking charges

Free car parking is not sustainable for two reasons.

Firstly, we need to raise some income to maintain the fabric of car parks and ensure that when residents and visitors park their cars, they are safe and secure.

Secondly, some traders have told me that free unlimited car parking would mean that we run the real risk that people would park in South Shields, get on the Metro or bus and travel to areas like Newcastle where the parking charges are more expensive. That would bring no benefit at all to our local economy.

What we need is flexibility.

We have proposed the introduction of a “penny a minute” charge (with a minimum stay of 10p). We are also going to drop parking charges for coaches at the Foreshore. The retail sector also asked us to operate a “car parking transfer” ticket scheme so tickets bought in one car park can be used in any of our car parks without the need for residents to continually purchase additional tickets as they travel around the Borough.

Supporting the retail sector

The Council and its partners are already holding regular meetings with the retail sector about how we can help them through the present financial difficulties. We are reducing the price of our market stalls and we will be undertaking a regional marketing campaign to encourage people to visit South Tyneside, particularly during the Summer Events Festival – which will remain free of charge.  

I would also like to encourage all Gazette readers and their families to shop local and support our local businesses in the best interests of the borough.

Flexibility on business rates payments

While we do not have any powers in relation to the rates paid by the business community, we do have flexibility on the way we collect the charge.  When we were asked by the business community  to change the method of payment from ten to 12 times a year, we responded by putting in place systems that will allow us to do just that.

Housing improvement

The Council will be bringing forward proposals to commence with the building of new homes for rent in the next few months. In addition Local Community Area Forums will have access to over £600,000 additional monies to improve the council housing in their areas, as well as nearly £2m from the Decent Homes Standards to drive up environmental improvements on our housing estates. These local schemes will be delivered in consultation with local residents to ensure they have the widest support possible.

Your fund

Community Area Forums and the wider public will have also access to a £300,000 through the Your Fund project. You can find out more and apply for funding in your area by visiting www.southtyneside.info/yourfund.

Future Council budgets

Yesterday was the first budget proposed by the Lead Member for Resources, Cllr Ed Malcolm. It is his responsibility to guide our finances and ensure we look at future budget planning.

He has announced that planning for the 2010/11 will start almost immediately and he is keen to involve all members of the Council and the public in setting future priorities.

Already he has instigated a number of reviews:

·         To reduce the number of buildings used by the Council

·         To examine how our community centres can be more accountable to local residents

·         To ensure that the money we give to the voluntary sector is spent in accordance with the Councils core strategy

·         To reduce the amount we spend on external consultants and agency staff

Balancing the budget

No one can doubt our ambition to support the people of South Tyneside by delivering a healthy, prosperous future with community priorities at the heart of that delivery.

The independent Audit Commission has recognised over the years that we have ambition for our community and also operate our finances very well. Getting the balance right between achieving a low council tax and also investing for the future is really important. This is where strong leadership and innovation come to the fore. While some may advocate slash and burn policies to keep Council tax artificially low, I believe that the majority of people in South Tyneside understand that we have a long term commitment to reduce Council tax which is sustainable without raiding the Councils reserves.

I am confident that the budget we set yesterday is the right one for South Tyneside.

It will support us in delivering a better future for all the people of South Tyneside. I hope Gazette readers will continue to support us in this – challenging and supporting in a productive two-way exchange. That’s what local democracy is all about and as well as ensuring we have a healthy and productive debate, it also helps us make the right decisions.

There are lots of ways of contacting the council and local councillors but we also encourage people to send letters to the Gazette so we can continue to listen and respond to what you have to say.

I look forward to hearing your views.

Cllr Iain Malcolm,

Leader of South Tyneside Council