Northumberland County Council outlines plan to make £15.8m savings in upcoming budget

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New proposals from Northumberland County Council will attempt to save just under £16 million from the council’s budget over the next year.

The council’s head of finance, Jan Willis, explained that the additional cost pressures, which include rising costs for social care and new recycling responsibilities, would mean further cuts – described as “efficiencies” – would have to be found.

While £14 million in savings were already identified in last year’s budget, some additional cash needs to be found.

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It comes as councillors from both Labour and the Conservatives have been engaged in a fierce row over the latest settlement from central Government. The Conservative-led administration has maintained that the cash received from Westminster was “disappointing”, while the Labour opposition has argued the council has received an additional £20 million.

County Hall in Morpeth.County Hall in Morpeth.
County Hall in Morpeth.

Speaking at a meeting of the council’s corporate services and economic growth scrutiny committee, Ms Willis explained: “There are various figures floating around. The overall increase in core spending power is just over £20 million; however, £14.6 million of that increase is assumed to come from the council tax increase – the extra money coming from Government, not council tax, is £5.6 million.

“There’s more money, but not an extra £20 million for us to go out and spend, and there are some new responsibilities coming with it. We have got an additional £20 million, but an extra £40 million of pressures.”

A report to members identified a total of £15.8 million in savings set to be made as part of the upcoming budget. A total of £3 million will be saved by reviewing individual packages of care for adults.

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Work to create 10 additional children’s beds for looked after children will save £2.29 million by reducing expensive out of county placements. Further savings are proposed via the council’s BEST programme, which is looking to modernise ways of working.

Ms Willis continued: “We anticipated we would have to have significant efficiencies last year. Proposed savings of £14 million were approved last year so we could get ahead and put plans and actions in place.

“We have had to find some additional effectiveness of around £2 million.”

The final budget papers will go to the council’s cabinet next week and before full council at the end of the month.

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