Council tax rise and 75 job losses planned in £3.9m cost-cutting bid

A COUNCIL tax rise and 75 job losses have been announced under multi-million pound budget cuts in Newcastle.

- DANIEL HOLLAND Local Democracy Reporter [e-mail]

Newcastle City Council has unveiled plans to slash £3.9million from its spending next year, as it wrestles with spiralling costs for social care services.

The proposals include a council tax rise of 4.99%, which includes a 2% adult social care precept and is the maximum increase allowed without having to hold a referendum.

Civic centre bosses say they will also cut 75 council jobs, just over one per cent of the workforce, under plans to “streamline” services and make more use of artificial intelligence (AI).

The council has warned that it will have to find savings totalling £40.1million over the next three years, having already cut £400million since 2010.

Labour council leader Karen Kilgour said: “I spoke publicly after the Chancellor's Autumn Budget about my disappointment that our council will not benefit more from the Government's new funding formulas.

“We have a long history of prudent financial management here in Newcastle that means our city is not in as bad a financial position as many other areas.