Council Tax increase will be considered to balance budget

Councillors will consider proposals to increase Council Tax in a meeting next week to discuss the budget. 

Stockton-on-Tees Borough Council's Cabinet will meet on Monday, February 13 to consider a budget for 2023/24 and outline the Medium Term Financial Plan (MTFP) for the following three years.

The 2023/24 budget includes a council tax increase of by 4.9 per cent - 2.9 per cent on core council tax and two per cent towards the Government's Adult Social Care Levy. 

If approved, the proposals will see the budget balanced for this next financial year, but the current one-year local government financial settlement continues to create uncertainty for the future. 

"Rising energy costs, high levels of inflation plus increasing costs and demand for services, especially in Children's Services, and for adult social care, are just some of the challenges we are facing which has meant our finances are becoming stretched, said Councillor Bob Cook, Leader of the Council. 

"Our proposals will see us balance the budget for now, but it will not remove the uncertainty we face as we try to plan our MTFP in the context of a one-year government settlement.

"This really makes it impossible for Councils to plan ahead. But we're working on the basis that we will be facing a funding gap in 2025. 

"We need to carefully consider the way we do things, and that starts now. We're starting a transformation programme to look at how we can better deliver first-class services to residents and businesses, while making savings. We have a strong track record of doing this and while we're fully aware of the challenge we're facing, we are prepared.

"But we also remain ambitious for the Borough and for our residents and businesses too which is why we are continuing with ongoing investment across our town centres and investing heavily across Stockton-on-Tees."

Stockton-on-Tees Councillors will ratify the proposals in a meeting of Full Council on Wednesday, February 22.