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Newcastle-under-Lyme Borough Council faces £777k budget gap

Local News by Phil Corrigan - Local Democracy Reporter 1 hour ago  
Work has started on finding ways of bridging the funding gap (image via LDRS)
Work has started on finding ways of bridging the funding gap (image via LDRS)
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Council bosses will have to plug a budget gap of nearly £800,000 next year, a new report states.

Newcastle-under-Lyme Borough Council is facing funding pressures of £777,000 in 2027/28, and £1.47 million over the five-year period covered by the new medium term financial strategy.

Much of the budget gap is due to pay awards, which will cost £558,000 next year, along with £200,000 of income pressures as well as inflation and other cost increases.

The Reform UK-led council's financial situation is set out in a report on the MTFS, to be considered by cabinet members next Tuesday.

Work has started on finding ways of bridging the funding gap, and draft budget proposals are due to be published in December.

According to the MTFS report, these savings are expected to include the removal of net zero projects, commercial opportunities, asset management and 'budget prioritisation'.

Councillor Martin Rogerson, cabinet member for legal, governance and organisational performance, said: "The council has a duty to provide value for money services and to look after taxpayers' money responsibly.

"We are taking a long-term approach to our finances, not simply looking at how we balance next year's budget but how we put the council on the strongest possible footing for the years ahead.

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"Where inherited savings are working, we will continue to deliver them, but we are also challenging previous assumptions and developing our own proposals to reflect the priorities and ambitions of this administration.

"That means looking carefully at every area of spending, cutting unnecessary costs, exploring commercial opportunities and new sources of income, making better use of council assets and prioritising resources towards the services residents value most."

The 2027/28 budget and council tax are due to be approved by the full council in February.

     

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