A value for money budget for North Tyneside

22-JAN-09

Issued by: Jeanette Hedley

North Tyneside's Elected Mayor, John Harrison has pledged to be on the side of the borough's hard working families and businesses as he unveiled a budget putting value for money at the heart of everything the council does.

The draft Council Plan and budget proposals presented to an Extraordinary meeting of North Tyneside Council's Cabinet last night (Wednesday, January 21) sets out a five-year approach to target the issues raised by residents of the borough.

Key projects include a programme of new youth facilities in every part of the borough, 1,000 new affordable homes, support for businesses and a programme to deliver a cleaner, greener and safer borough.

The success of the previous transformation programme enables the council to spend more than ever before - an extra £77m on previous years - but it also levers in a record £770m of benefit, through government grants and partnership working, for the residents of the borough.

"We recognise the problems our residents are facing in this national and global situation and that is why the proposals we have before us today provide for growth and investment in the borough to help boost the local economy," said Elected Mayor, John Harrison.

"A £680million strategic investment plan includes major programmes such as building schools for the future, £33million on more focussed economic growth and £5m for road and pavement improvements which we are going to determine in partnership with our communities."

The sound financial position of the council is enabling the Cabinet to propose to use some of the Council's strategic reserves to support businesses and residents in the current global economic climate. This will be used to support growth and investment in the local economy and alleviate the tax burden for individuals.

Pledging never to be complacent with the council's financial situation the Cabinet announced the second phase of the transformation programme with a commitment to achieve £100 million of value for money savings over the next five years to improve council efficiency.

This will support the continued stability of council finances and enable further investment in council reserves to ensure the authority is able to meet any unforeseen circumstances over the next five years.

Mr Harrison said: "Our transformation programme has enabled us to make significant progress to the benefit of residents of this borough - we are now a three-star council, delivering much improved services and one of the country's fastest improving authorities.

"We have stable finances and our reputation for successful delivery and innovation have earned us millions of government funding.

"Our stringent financial planning and performance management mean we have a five-year Council Plan and budget framework. Our priorities our fully costed and required funding is already identified. Our general fund balance remains at £6.5million, with the total reserves and balances projected to be over £40 million at the end of 2009-2010.

"In the interests of our residents and businesses we are not complacent. We must challenge ourselves to do even more to ensure we deliver value for money and high quality services for our customers and council tax payers."

The 2009-2010 spending plans propose a total general net revenue budget of £168.8million, excluding schools. This represents an increase of £3.2million or 1.9 per cent.

Information from other precept authorities is still awaited but a council tax increase of 2.5 per cent - equivalent to a 45 pence increase per week for a Band A property and 68 pence per week for Band D - is anticipated, confirms the report.

The Housing Revenue Account includes provision for ensuring all council homes meet the nationally set Decent Homes Standard by the end of December 2010, and for supporting the £100million programme to invest in new and refurbished sheltered accommodation across the borough.

Additional funding is also being provided to embark on a programme of doors and windows replacement, in addition to the Decent Homes work.

Overall spending will be focused on five new Council Plan themes with ambitious five-year programmes. The key projects in each include:

• Ambition - one of the largest theme areas will see £895million spent over the next five years (including £185million in 2009-2010), to achieve the ambitions of the borough and improved opportunities for residents. This includes delivery of five new skills and enterprise centres for 14-19 year olds and adults; new schools through the Building Schools for the Future programme; a replacement doors and windows programme to improve council properties above the Decent Homes standard and a housing PFI scheme for Wallsend delivering 1,000 affordable homes.
• Growth - this theme focuses on economic growth and developing employment opportunities with £93million allocated over five years (£38.2 million in 2009-2010) including projects to support the growth of the borough's retail centres; work to attract inward investment particularly along the A19 highway and the development of the North Bank of the Tyne; and investment in better public transport.
• Quality of life - the theme focuses on making the borough cleaner, greener and safer with £212.9million of net resources in 2009-2010 and £1,090million over the five-year period. Projects funded include the introduction of the borough's new recycling scheme, the 'Litter Blitz campaign to target litter; supporting the development of zero carbon homes for North Tyneside; the roll out of 20mph zones to make streets safer; four new youth facilities; the delivery of Wallsend pool and investment in parks in all four areas of the borough
• Value for money: - the key focus for this theme will be achieving efficiencies from within the organisation ensuring it is delivering the best quality and performance at the optimum cost. Also included is the personalisation of adult social care to deliver a new, high quality care system that is fair, accessible and responsive to needs of individuals. And the Young North Tynesider Card, which delivers additional benefits for residents and makes it easier for customers to access council services.
• CLOSER - the key focus of the theme is to support North Tyneside Council to be the best local authority working with its communities. Projects include new participatory budgeting to give residents more say over spending on roads and pavements; a new business engagement programme; the election of a Young Mayor and Cabinet and the establishing of neighbourhood agreements and standards.

The final decision will be made by March 5.