Councillors at Newcastle Borough Council have approved the upcoming budget which will add 'pennies a week' to council tax bills.

Conservative councillors praised the budget as a 'template' for others while opposition Labour councillors raised concerns over the lack of scrutiny taken on board. 

From April 2026, Band D households will pay £227.48 a year for the borough's share of council tax, a 1.99 per cent increase.

Other measures in the budget include the freezing of car park fees, the freezing of outdoor sports charges and a focus on town centre regeneration.

In order to balance the budget, savings of £1.59 million have been identified. The savings proposals passed at the budget meeting include £744,000 from reduction in pension contributions to reflect improved funding levels, £37,000 in restructuring the markets and events department and £100,000 in extra council tax due to the building of new homes.

Council Leader, Simon Tagg said: "We present a balanced budget with a low council tax increase of 1.99 per cent.

"That means that 95 per cent of households pay no more than 10 pence a week extra and this rise remains below inflation and sustains our record of keeping council tax below two per cent for the fifth year, honouring an election pledge in 2022. 

"We do this in the face of some real pressures, over the next three years the government will be cutting this council's funding by over £1.1 million.

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"We are safeguarding services in this budget while keeping those costs down and that's possible through planning ahead, managing the risks we've got and taking the right decisions in the interest of our residents."

The council leader said the priorities identified during the budget consultation, included town centre regeneration, open spaces and recycling have been reflected in this budget. The £100 million town centre regeneration scheme at Ryecroft, Midway and York Place will continue.

Councillor Tagg continued: "So this budget reflects those residents' priorities. On front line services, we continue to fund the things those people have said they want funding like waste collection and our recycling system, hygiene inspections and also our wonderful J2 and borough museum.

"Also all the other facilities that this council provides to the population and keeping the element of the council tax increase of the borough part down to pennies a week."

However, opposition councillors were quick to ask questions on the budget. Councillor Richards asked about measures to reduce reliance on temporary accommodation in the borough, Councillor Reece asked about the implication of lower capital receipts and the impact that could have on major capital projects.

Councillor Lewis queried whether modelling had been undertaken on if increased fees and charges would lead to increases in revenue and Councillor Fox-Hewitt asked for clarity relating to the £781,000 staffing related efficiencies.

Councillor Mike Stubbs said that just 25 residents responded to the budget consultation and that the 30 suggestions made in budget scrutiny meetings were not taken into account and not reflected in the final budget. He confirmed that he would vote against the plans.

He said: "This is the most financially significant decision we will take in any given year. Yes we must adopt a budget, yes we must meet our statutory duties but we should not do that while ignoring scrutiny, relying on untested assumptions and exposing the council to escalating capital risk."

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Despite this, deputy mayor Councillor Joan Whieldon told councillors: "If I look at what we're doing this borough should be held up as a template for all other regions in the country to follow. We have managed to stay within the restrictive confines forced up on us by this out of control Labour government."

The budget was passed, with all Labour councillors voting against the plans.