07 January 2005
Newcastle City Council is to set a council tax increase of just 2% for 2005/06 after a £9.5m efficiency and cuts programme.
The authority, which swung from Labour to Liberal Democrat control in the June 2004 elections, is one of the first to declare its proposed increase in what is likely to be a general election year.
Its budget proposals, being considered as Public Finance went to press, include restructuring its workforce with the loss of 130 full-time posts. These will come from managerial, administrative and support services.
The council will passport an extra £6m to schools and has earmarked an additional £4m for social services and £2m for environmental improvements.
Peter Allen, executive member for resources, said the increase was the lowest for years — the council's Band D tax stands at £1,301 — and was possible after a 'rigorous examination of spending'.
He added: 'There are still big challenges in making large savings but we're confident that these can be achieved without affecting services.'
PFjan2005
