Issue - meetings

(i)              That the first draft savings proposals as set out in Appendix A and

Appendix B to the report be noted.

(ii)             That the revised Medium Term Financial Strategy (MTFS) funding gap

(Appendix C) be noted.

(iii)           That the commencement date of the Budget Consultation period as mid-

November to mid-December 2025 be noted.

(iv)           That the first draft savings proposals be referred to to the Finance,

Assets and Performance Scrutiny Committee for their views (Appendix A and Appendix B).

(v)             That the refreshed Medium Term Financial Strategy (MTFS) (Appendix

D) be referred to the Finance, Assets and Performance Scrutiny

Committee for their views.

(vi)           That the Mid-Year Capital Estimates for 2025/26 be approved.

(vii)          That the proposed setting of Council Tax at 1.99 per cent for 2026/2027

be noted.

The Portfolio Holder for Finance, Town Centres and Growth introduced a report presenting the refreshed Medium Term Financial Strategy (MTFS) which included the first draft savings being considered to balance the 2026/27 revenue budget and the proposed capital programme for 2026/27 to 2028/29.

The proposed savings and funding strategies, to address a £1.752m budget gap were outlined at paragraph 2.4 of the report.  The Portfolio Holder announced a below inflation increase in Council Tax of 1.99% which amounted to ten pence per week or less for 95% of households in the Borough.

The identified savings would enable a continued contribution of £250,000 to the Borough Growth Fund which would continue to enable investment in the Council’s priorities including significant investment in boosting the sustainability of the environment within the Borough by supporting town centre development.

The draft proposals would assist in formulating a financially robust budget for the council which would continue to ensure financial sustainability whilst also protecting the Council’s services.

The Leader stated that again, the proposed savings were a result of a very rigorous Efficiency Board process – which, since they had been introduced in 2018 had saved over £10m.  The results showed that this Council could balance budgets and was a well run council which could keep Council Tax down.

Councillor Hutchison welcomed the MTFS and stated that in his Portfolio (Sustainable Development), £10,000 efficiencies had been found in Bereavement Services; £8,000 in Neighbourhood Delivery; £293,000 in Recycling and Waste and £20,000 in Streetscene.

Councillor Sweeney added that he had earlier learned that the number of Council’s that had had their accounts signed off and completed for last year was one in fifteen and Newcastle was one of those councils.

The next stage for the revised MTFS would be to present it to the Finance, Assets and Performance Scrutiny Committee in January.

Resolved:    (i)       That the first draft savings proposals as set out in Appendix

A and Appendix B to the report be noted.

(ii)              That the revised Medium Term Financial Strategy (MTFS)

funding gap (Appendix C) be noted.

(iii)            That the commencement date of the Budget Consultation

period as mid-November to mid-December 2025 be noted.

(iv)            That the first draft savings proposals be referred to the

Finance, Assets and Performance Scrutiny Committee for their views (Appendix A and Appendix B).

(v)             That the refreshed Medium Term Financial Strategy

(MTFS) (Appendix D) be referred to the Finance, Assets and Performance Scrutiny Committee for their views.

(vi)            That the Mid-Year Capital Estimates for 2025/26 be

approved.

(vii)          That the proposed setting of Council Tax at 1.99 per cent

for 2026/2027 be noted.

Watch the debate here