Council facing 'unrelenting cost pressures'

OVERSPEND OF £10M AMID CONCERN OF 'PROBLEM ASSETS'

- By DANIEL HOLLAND

NEWCASTLE City Council is facing a £10 million budget overspend, amid major concern about a series of “problem” buildings failing to bring in enough income.

Latest projections warn that the local authority is on course to run £9.6 million over its 2025/26 budget unless action is taken over the next few months.

The estimate has been described by senior figures this week as the most severe in-year overspend projected by the council in recent memory.

Labour council leader Karen Kilgour told a cabinet meeting on Monday that the city was experiencing “unrelenting cost pressures” on social care and special educational needs support.

While Newcastle City Council has slashed its spending by £400 million since 2010 and must find another £40 million in savings over the next three years, Coun Kilgour said that the authority was in a financial position that is “significantly better” than many others.

However, there are mounting worries about a series of “problem assets” owned or part-owned by the council that are adding to its financial burden.