Medium Term Financial Plan 2023 – 2028

Published February 06, 2023 An accessible strategy document from


With a refreshed 20-year vision for the borough anchored by a real understanding of the challenges which the borough faces but also the opportunities which are available, this Medium Term Financial Plan has been prepared using evidence, insights, and feedback from the people of the borough. Its content aligns with our Vision for South Tyneside to be a place where people live happy, healthy, and fulfilled lives and five core ‘Ambitions’ for residents.

Our Ambitions

We have five ‘Ambitions’ – the things we want to achieve over the next 20 years to help deliver our Vision. These five Ambitions will guide everything we do.

We want all people in South Tyneside to be:

Financially Secure

Residents will be financially secure. They will have what they need for a good standard of living.

Healthy and Well

Residents will enjoy good mental and physical health throughout their lives. They will have the best start in life and be able to age well.

Connected to jobs

Residents will have access to jobs, skills, and learning. They will have the skills and confidence to apply for a wide range of quality local jobs. These jobs will be in key and growing areas of employment and benefit all our borough.

Part of strong communities

Residents will live in clean, green, and connected communtieis where they feel safe.

And we want these things for every resident, so we are committed to:

Targeted support to make things fairer

We will target support at the residents and parts of our borough that need it the most, reducing inequalities and making things fairer.

As a Council, setting a balanced budget is one of the most difficult but important responsibilities we have. Each year, we weigh up pressures including increased demand for services, reduced Central Government funding, and competing commitments, priorities, and ambitions. This year, our Vision and core ambitions, a result of intensive engagement with thousands of residents, businesses, partners, Council employees and elected members, provides us with renewed purpose and focus.

This is critical given the events of the last few years have magnified the challenges that we face both as an organisation and as a society which have exposed and widened the inequality gap between our most and least affluent communities.

Our Medium Term Financial Plan (MTFP) outlines how our energy and resources are focused on tackling the biggest and most fundamental societal issues facing residents, whilst continuing to deliver the hundreds of day-to-day services including supporting those in need or families in crisis to collecting household waste and keeping parks and beaches clean and accessible.

We know that our residents are already under intense pressure. We have taken action through the Cost-of-Living Summit and subsequent actions to step up our support services, signpost to outreach networks and work with the borough’s voluntary sector to face the challenge head on, getting ahead of the curve where possible. Rest assured we will continue to do what we can to support residents and businesses in the borough, working together to reshape our services to ensure that they are sustainable.

As an organisation we have challenged ourselves so that we can be the absolute best for our residents and be relentless in our pursuit of change. 2022 has been a period of clear, rapid, and impressive progress. The ‘Our Council’ Change Programme strengthens our ways of working, supports employees and elected members in their important roles and drives modernisation and improvements across the Council. We’ve got the foundations of a new Council, a new way of working and a major change in the organisation. This is just the start of a very exciting journey for South Tyneside. A changed Council, with new ambitions that puts people at the heart of everything we do.

Following the Chartered Institute of Public Finance and Accountancy (CIPFA) review of our financial management we are looking to further strengthen our financial management approach and learn from best practice. We were identified as being on the cusp of a 3-star rating and have an action plan in place to achieve this.

We have made steady progress on our regeneration and growth projects like the International Advanced Manufacturing Park, Holborn Riverside, and a new campus for Tyne Coast College. We have also undertaken extensive consultation to bring forward a new masterplan for South Shields Town Centre, with future consultations planned for Hebburn and Jarrow.

We continue to improve the energy efficiency of the borough, replacing all street lighting columns with LED lights within the next five years. In 2023 the programme will reach phase 5 with almost two thirds of columns upgraded. Our three innovative renewable energy schemes, one in each town, continue to progress using our natural assets and renewable technologies to deliver carbon savings of over 4,000 tonnes per year.

As we look to agree the budget for 2023/24, we do so in a changed financial landscape. Just like residents and businesses, the Council is faced with the challenges of high inflation and increased costs, especially utility costs.

Our financial pressures remain. After over a decade of austerity we are a leaner organisation but with over half of our funding slashed we continue to incorporate learning from the challenges we have faced to create efficiencies and achieve best value for money. Innovation in the use of technology to support how we deliver services, including care and support and more agile ways of delivering services will be embedded into our future plans as we look to redesign our delivery in co-production with residents and businesses.

We have been successful in attracting millions of pounds of external funding for a range of regeneration schemes and we continue to do all we can to leverage any funding opportunities available to us to bring forward transformational projects for South Tyneside. Working with our regional partners, a new ambitious devolution deal could enable each local authority and the combined authority to obtain the benefits they want for their communities, residents and businesses. It is vital we take every opportunity to pull in additional investment above and beyond our core Council funding.

Continuing pressures in adult and children’s social care are not new, yet they continue to grow despite the amazing efforts we are taking to work with people who draw upon care and support to co-produce and redesign our services. Some 70% of our discretionary budget is spent on social care alone. That is why we are investing in three new extra care accommodation schemes across the borough and two independent supported living schemes to support residents who may need additional help to live independently in the community. Alongside these, we are bringing forward new residential children’s homes to almost triple the number of placements in South Tyneside for looked-after children and young people. By investing where we need it most, focusing upon prevention, we will look to bring down some of our social care costs in the future.

Whilst there are significant costs associated with the delivery of social care, we recognise that the provision of good quality social care enables people to live better lives, it supports them to achieves the outcomes that matter to them and by investing in our children, young people, adults and carers we can promote their long-term independence and wellbeing.

We recognise the value of a good quality social care workforce both for children and adults and that is why we are committed to investing in the development of our South Tyneside Care Academy. This will see us working to develop opportunities for increasing the number of people who want to work within the sector by linking with key partners, increasing training and development opportunities and working with our care providers.

As a Council, we continue to seek certainty from Central Government on long-term funding to cover increased cost pressures and rising demand and to invest in local services so that we can change lives and communities for the better.

Despite ongoing financial pressures, with this year’s Medium Term Financial Plan, we have listened to residents and businesses through significant engagement in the last year, considered the evidence underpinning our decision making and began to align our resources to our 20-year vision and ambitions. We are proposing a balanced budget that continues delivery of our transformational projects for the future whilst supporting residents in the challenges they face today.

Councillor Tracey Dixon Leader of the Council

Financial Context

Introduction from the Lead Member Governance, Finance & Corporate Services, Cllr Joanne Bell

Medium-Term financial planning is a key part of South Tyneside’s policy and budget framework. Driven by our new Strategic Plan and the ambitions within it, it sets out our strategic approach to the management of our finances, within which delivery of our priorities will be progressed.

Like all local authorities, South Tyneside Council operates within a framework of statutory obligations that are shaped by wider political and legislative powers.

Wider factors which influence what we can deliver

National legislation

For example, introduction of new local responsibilities or changing relationships such as with schools or health partners

Funding decided at a national level

Including funding pots which areas must compete for, or changes to business rates or council tax affecting expected revenue

Economic environment

Including rising inflation, impacting on energy bills, staff wages and goods and services

Societal changes

Including new technology and changing global priorities, such as around climate action, the shift to increasingly remote working, or political conflicts

National policy and guidance

For example new inspection frameworks or standards

The different powers and functions devolved to different levels of government

For example around skills or transport

Changes in demand

For example an aging population meaning a greater number of residents requiring support to live independently, or a birth rate increase meaning more nursery or school places

This document covers the period 2023-24 to 2027-28 and is subject to annual review. This helps to ensure our financial planning is responsive to changing national and local factors, taking into account emerging risks and to protect our financial health. This document also sets the Council’s budget for 2023-24.

Our key financial planning principles are:

  • Financial sustainability over the long and short-term
  • Planning over multi-year horizon
  • Alignment of decisions with Strategic Priorities
  • Availability of investment and savings choices which are clear and transparent
  • Explicit linkages between capital budgets and revenue investment / costs
  • Risk mitigation against existing and emerging macro cost pressures

Working with our partners, we have delivered a huge range of services and successful outcomes for both the residents and businesses of South Tyneside, including:

  • Empty 6.5m bins
  • Manage 550km of road and 1700km footway
  • Welcome 7m visitors to the borough
  • Support over 22,000 children in their nursery, primary and secondary education
  • Handle over 300,000 customer contacts
  • Process over 60,000 benefit applications and changes
  • Manage over 17,000 Council homes
  • Process 730 planning applications
  • Investigate 11,000 noise complaints
  • Inspect 600 food outlets
  • Process 3,100 licenses and permits
  • Support 2,500 to access assistive technology to remain independent
  • Deal with 21,000 new adult social care contacts
  • Support 3,500 adult leaners
  • Manage 2,000 referrals to Children’s Social Care
  • Support 3,000 ‘in need’ children and young people (including children in care or on a child protection plan or care leavers)
  • Maintain 1.2m trees
  • Host 1.4m admissions to Council leisure facilities
  • Support 4,300 individuals with special educational needs
  • Cut 550 hectares of grass
  • Manage over 140 industrial units
Councillor Joanne Bell Lead Member Resources and Innovation

Financial Challenge

These are seriously challenging times for local people, businesses and for local councils. Across the country, councils are grappling with balancing budgets and keeping frontline services going. The cost of living crisis is clearly and understandably at the forefront of people’s minds and a key focus for the Council whilst also dealing with rises to inflation, energy and fuel costs.

This coupled with increases in demand for Adults and Children’s social care post Covid-19 and the increased costs of these services means that the Council needs to spend more money to continue to deliver our current services. Recent Central Government announcements indicate that future funding for councils beyond the lifetime of this parliament will be extremely tight.

In 2021 Central Government announced major changes to adult social care funding in respect of how we pay for care and how individuals pay towards the cost of their care. Whilst some aspects have been delayed, the financial impact of the reforms has the potential to be significant and there is a great deal of uncertainty associated with this going forward particularly if the costs of the reforms are not fully funded by Central Government. We are continuing to work with Government and in respect of the reforms and our care providers to further understand the impacts for the Council.

We continue to adapt to our evolving circumstances and explore new and different ways to deliver our services in the context of a reducing core Government grant. Our core Central Government funding has reduced by 52% since 2010. A series of one-year financial settlements from Central Government makes taking a long-term view of services and finances extremely difficult.

The Council receives 63% of its income from Council Tax payers, retained business rates and use of reserves. Previous cuts to Central Government funding and demand pressures have meant that councils now rely much more on local tax revenues for their overall funding. The budget has been calculated incorporating an increase of 4.95% in Council Tax for 2023/24. 2% of this increase relates to the adult social care levy contributing towards the funding gap within Adult Social Care services.

Assessing Potential Impacts

Councils have a duty under the requirements of the Equality Act 2010 to consider the impact of their decisions on people with ‘protected characteristics’. There are nine protected characteristics identified by the Act: age, disability, gender reassignment and identity, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

We are committed to embracing the principles of equality, diversity and inclusion (EDI) in everything that we do. For example, we now have an elected member portfolio and lead and also an elected member champion to promote the principles of EDI. We have also taken steps to increase and positively acknowledge the diversity within our workforce through a number of collaborative forums. One of our new core ambitions is also to “target support to make things fairer” which will underpin our aim of reducing inequality. We are currently self- assessing our approach and performance against the Equality Framework for Local Government which will inform future actions.

As part of setting our budget we carry out Equality Impact Assessments (EIAs) of proposals that will result in a change to services or policies in the next financial year to understand the impact of these changes on our population and to make sure we do not discriminate against individuals or groups. This will support us in making fair, transparent and evidence – based decisions.


We are committed to supporting a sustainable borough which deals with the challenges of climate change. The Council agreed a strategic plan Sustainable South Tyneside 2020 - 25 to move towards a carbon neutral future. The Council continues to lead the Sustainable South Tyneside agenda, mobilising investment and delivering a range of projects to reduce greenhouse gas emissions from the Council’s operational activities.

Major projects include investment in renewable energy schemes across the borough which will significantly cut carbon emissions whilst providing heating and electricity to a number of buildings. We are also delivering the Stronger Shores project as a nature-based solutions which will help protect against coastal erosion and flooding.

We are supporting awareness and behavioural change around climate change, promoting a shift towards sustainable and active modes of transport. This includes adoption of an agile working policy within the Council which has reduced emissions from fewer private car journeys. We are also investing in greater electrification of our own vehicle fleet and continuing the replacement of street lighting with energy efficient LED bulbs.

Revenue Budget

How we fund our Budget

The table below sets out the Council’s forecast level of funding for the period 2023-24 to 2027-28. The table indicates that the Council has four main sources of funding; government grants, council tax, business rates and council reserves.

Forecast level of funding for 2023/24 to 2027/28
2023/24 2024/25 2025/26 2026/27 2027/28
Government Funding
Revenue Support Grant 17.312 17.658 18.011 18.372 18.739
Business Rates Top Up 36.748 37.483 38.233 38.997 39.777
Services Grant 2.000 2.000 2.000 2.000 2.000
Subtotal Government Funding 56.060 57.141 58.244 59.369 60.516
Collection Fund
Council tax 72.275 76.312 78.975 81.716 84.539
Retained business rates 13.409 13.677 13.951 14.230 14.514
Collection Fund Contribution 0.500 0.500 0.500 0.200 0.200
Sub total collection fund 86.184 90.489 93.426 96.146 99.253
Use of reserves
Rate relief 1.450 0 0 0 0
General use of reserves 8.630 2.354 -1.744 -0.344 1.054
Subtotal use of reserves 10.080 2.354 -1.744 -0.344 1.054
Total general fund budget 152.324 149.984 149.926 155.171 160.283

Government Funding

The Local Government Finance Settlement announced in December 2022 only provided confirmation of funding for 2023/24.

The provisional settlement was announced on 19 December 2022. Our core spending power will increase from £164.7m to £181.9m, an increase of 10.5%, which compares with an all-England average of 9.2%. This includes:

  • Settlement Funding Assessment increase from £64.9m to £68.6m, an increase of 5.7%. The increase of £3.7m relates to:
    • The Revenue Support Grant (RSG), which will increase from £15.4m to £17.3m, an increase of 10.3%;
    • Rolling in of the following previously separate grants into RSG: Family Annex Council Tax Discount grant (£0m), Local Tax Support Admin subsidy grant (£0.3m) and food safety and standards enforcement (£0m);
    • Baseline Funding Level, which is the government’s notional measure of business rates income due to councils and incorporates the Business Rates Top-Up Grant has increased from £49.5m to £51.3m, an increase of 3.6%.
  • Improved Better Care Fund will remain at £10.5m for 2023/24, the same as received in 2022/23.
  • New Homes Bonus will decrease from £0.570m to £0.004m, a decrease of 99.4% compared to an all-England average reduction of 47.7%. This is due to a reduction in the number of annual payments to be received in 2023/24 from two (2021/22 and 2022/23) to one (2023/24).
  • Social Care Grant will increase from £10.7m to £16.7m, an increase of 56.6% compared with an all-England average increase of 37.2%. This will result in our share of the total grant reducing slightly from 0.46% to 0.43%, which equates to £0.456m. The majority of the increase is the result of savings from delaying the rollout of adult social care charging reform, however the funding has still been made available to local authorities to help meet the current huge pressures in social care.
  • Market Sustainability and Fair Cost of Care Grant will increase from £0.618m to £2.143m, an increase of 247%, compared to an all-England average increase of 247%. This funding, which totals £562m nationally, is the second instalment of the additional funding highlighted in the Spending Review 2021 for the reform of adult social care.
  • Lower Tier Services Grant has been removed at all-England level (£111m in 2022/23) and repurposed to create a new one-off Funding Guarantee to ensure all authorities see at least a 3% increase in their Core Spending Power. As our Core Spending Power has increased by 10.3%, we have not received a share of this funding, of which we received £0.293m in 2022/23.
  • Services Grant will reduce from £3.4m to £2.0m, a decrease of 41.2% compared to an all-England average reduction of 41.2%. This is in part because there is no longer an increase in National Insurance contributions which formed part of the basis of additional funding in 2022/23. In addition, some funding has been re-directed to increase the funding for the Supporting Families programme and to pay for other parts of the settlement such as increasing Revenue Support Grant.
  • A new Discharge Funding Grant totalling £1.5m will be received in 2023/24. This funding, which totals £300m nationally is to ensure those people who need to draw on social care when they are discharged from hospital can leave as soon as possible, freeing up hospital beds for those who most need them. Local Authorities will be required to pool this funding as part of the Better Care Fund.
  • Government assumption that Council Tax will increase by 4.99%.

The final settlement was announced on 6 February 2023 and contained only minor changes to the provisional settlement.

Council Tax

Section 30 of the Local Government Act 1992 requires the Council to set an amount of Council Tax for each financial year for each category of dwellings in its area.

A council tax bill is made up of several different charges. Alongside the charge to fund council services, which is inclusive of levies from external bodies to support functions such as transport and flood defence, the overall council tax level set for the borough includes precepts for the Tyne & Wear Fire and Civil Defence Authority and Northumbria Police and Crime Commissioner. From 2017/18 councils with responsibility for adult social care have been given the ability to raise council tax by an additional levy to cover a funding shortfall in this area. The figures below include a 2% increase in respect of Adult Social Care and a 2.95% annual increase. Due to the pressures within Adult Social Care, there will still remain a significant funding gap.

The amount payable for dwellings in different valuation bands is calculated using the following proportions for each valuation banding:

Valuation band
A 6/9
B 7/9
C 8/9
D 9/9
E 11/9
F 13/9
G 15/9
H 18/9

Thus giving the following council tax amounts for the South Tyneside area (including a 2% precept to fund adult social care but excluding other precepts).

Valuation band South Tyneside Council (£)
A 1,219.75
B 1,423.04
C 1,626.33
D 1,829.62
E 2,236.20
F 2,642.78
G 3,049.37
H 3,659.24

To these must be added the precepts of Tyne & Wear Fire and Civil Defence Authority and the Northumbria Police and Crime Commissioner. Tyne & Wear Fire and Civil Defence Authority have confirmed a precept increase of 5.72% and the Northumbria Police and Crime Commissioner an increase of 9.75%.

Valuation band Tyne & Wear Fire and Civil Defence Authority (£) Northumbria Police & Crime Commissioner (£)
A 61.57 112.56
B 71.83 131.32
C 82.09 150.08
D 92.35 168.84
E 112.87 206.36
F 133.39 243.88
G 153.92 281.40
H 184.70 337.68

These result in the following council tax amounts (including precepts):

Valuation band South Tyneside Council (£)
A 1,393.88
B 1,626.19
C 1,858.50
D 2,090.81
E 2,555.43
F 3,020.05
G 3,484.69
H 4,181.62

Retained Business Rates

The Council collects Business Rates in the borough and keeps 50% of the collected rates income. The other 50% is passed to Central Government which is then distributed back to councils as a top-up grant to reflect individual spending requirements.

Council Reserves

The Council aims to establish reserves based on financial risk and limit the use of reserves to support on-going spending. More detail on our risks and reserves held is shown in Chapter 3.

Budget Pressures and Investment

Priority Investment

Our investment choices are guided by our strategic risks. For example, we are investing in a hosted disaster recovery system, recognising the significant risk around a cyber-attack on the Council. Other strategic risks include insufficient funding and increased demand in Adult Social Care as well as financial risks around inflation, energy prices etc.

Work continues to further align our resources to achieve our priorities and to generate future savings through our five-year budget planning process.

A list of the priority investment for 2023/24 is shown in the table below:

Priority Investment for 2023/24
Title Directorate Amount (£m)
Hosted Corporate Disaster Recovery Solution Business & Resources 0.250
Improved Grounds Maintenance Regeneration & Environment 0.130
Local Area Co-Ordination Adult Social Care & Commissioning 0.120
Community Engagement Team - Environment Regenration & Environment 0.117
Ant Poverty Strategy Officers Business & Resources 0.100
Member Support Governance & Corporate Affairs 0.097
ECO Flex Regeneration & Environment 0.074
Placement Stability Children's Services 0.070
Technology Enabled Care Lead Adult Social Care & Commissioning 0.065
Business Manager Adult Social Care & Commissioning 0.065
Housing Strategy & Development - Supported Housing Regeneration & Environment 0.060
Energy Team Regeneration & Environment 0.054
Occupational Therapist Single Handed Care Practitioner Adult Social Care & Commissioning 0.054
Independent Supported Living Co-ordinator Adult Social Care & Commissioning 0.029
Total Priority Investment 1.285

The priority investment is also shown by ambition in the chart below:

Priority Investment by Council Ambition
Ambition Amount
Strong communities 0.478
Healthy & Well 0.403
Enabling 0.250
Financially Secure 0.154

Inflationary and Standstill Pressures

Price inflation is currently running at a recent historical high of 11%. Many of our contracts (especially our adult social care contracts) are linked to various inflation factors in the Consumer Price Index, including the national living wage. There are also unprecedented increases in utility costs as well as unexpected increases in pay awards. Demands upon adults and children’s social care continue to increase as an after effect of the Covid-19 pandemic This all means that the Council has to spend considerably more just to continue providing the same services. A list of the standstill pressures for 2023/24 and estimates for 2024/25 to 2027/28 is shown in the table below:

Revenue Standstill Pressures
2023/24 2024/25 2025/26 2026/27 2027/28
Cost of living increase 6.236 1.600 1.600 1.600 1.600
Net inflation on prices and income 14.496 3.400 3.400 3.400 3.400
Sub total inflation 20.732 5.000 5.000 5.000 5.000
Other pressures
Changes in employer pension contributions 0.000 0.000 0.000 1.000 0.000
Revenue implications of Capital Programme 0.500 0.500 0.500 0.500 0.500
Adult Services Demogrpahic Pressures 1.500 1.500 1.500 1.500 1.500
Adult Services Demand Pressures 4.000 0.000 0.000 0.000 0.000
Children's Services Demand Pressures 1.000 0.000 0.000 0.000 0.000
SEND Demand Pressures 1.000 0.000 0.000 0.000 0.000
Other Demand Pressures 1.300 0.760 0.000 0.000 0.000
Forecasted Pressures 0.000 1.230 1.990 0.990 1.990
Sub total other pressures 9.300 3.990 3.990 3.990 3.990
Changes to External Grant
Changes in External Funding 1.144 0.010 0.010 0.010 0.010
Sub Total Changes to External Grant 1.144 0.010 0.010 0.010 0.010
Total revenue standstill pressures 31.176 9.000 9.000 9.000 9.000

Summary Medium-Term Financial Position

Taking into consideration our funding, priority investment and standstill pressures, the table below gives a summary of our medium-term financial position for 2023/24 to 2027/28.

Medium-term financial position for 2023/24 to 2027/28
2023/24 2024/25 2025/26 2026/27 2027/28
Base budget 136.820 152.324 149.984 149.926 155.171
Priority investment 1.285 1.120 0.500 0.500 0.500
Standstill pressures 31.176 9.000 9.000 9.000 9.000
Funding Available -152.324 -149.984 -149.926 -155.171 -160.823
Budget gap 16.957 12.460 9.558 4.255 3.848
To be addressed by
Specific grants -13.281 -3.460 -0.558 -0.755 -0.348
Service efficiencies -3.676 -9.000 -9.000 -3.500 -3.500

The diagram below shows our revenue budget for 2023/24 by Directorate. Appendix 1 provides more detail on the 2023/24 budgets for each service.

Revenue budget for 2023/24 by Directorate
Directorate 2023/24 Budget
Adult Social Care and Comissioning 63,143,640
Children's Services 44,080,100
Public Health 14,924,810
Regeneration and Environment 31,381,350
Business and Resources 8,021,680
Governance and Corporate Affairs 6,815,780

Budget Savings

The funding we estimate to receive from Central Government and from Council Tax payers over the next five years is not sufficient to cover our current level of spend plus our new budget pressures. Therefore, to make sure we can continue to focus spending on our priorities and ambitions, we have identified proposals for reducing spending, generating income and increasing efficiency across all of the Council’s services for 2023/24. This will mean that our spending plans are affordable and match the money we expect to receive. Further work will be required to address funding gaps from 2024/25 onwards.

Plans for reducing spending, delivering new models of service, additional income and increasing efficiency in 2023/24 are shown in the following table.

Budget savings
Title Amount £m
Adult Social Services & Commissioning
Improved & greater use of technology, supported by Tech Enabled Care Lead 0.100
Review of support linked with the provision of double handed care 0.250
Independent Supported Living Fund 0.200
Reduction in costs through independent supported living co-ordinator 0.100
Review of Learning Disability provision 0.100
Review of 1:1 care support to promote independence 0.050
Reconcile provider invoices to support plans on system 0.100
CHC Income - Review of eligibility and thresholds 0.100
Cost sharing across the public estate 0.100
Subtotal Adult Social Services & Commissioning 1.100
Business and Resources
Benefits deletion of vacant post 0.040
Benefits miscellaneous budgets 0.010
Finance deletion of 2 vacant posts 0.050
Supplies & Services Budgets 0.060
NEPO Rebate 0.020
Cash collection 0.020
Rate relief (S31) 0.950
Investment interest 0.100
Centaurea Homes Commercial Income 0.100
Historic pensions 0.050
Increased leisure membership 0.200
Other Leisure income 0.100
Subtotal Business and Resources 1.700
Children's Services
Home to School Transport Review 0.100
Increased income - supporting families 0.050
School improvement - reduction in external support 0.050
Subtotal Children's Services 0.200
Public Health
Re tendering of public health training provision 0.040
External funding of Domestic Abuse Perpetrator Programme 0.036
Subtotal Public Health 0.076
Regeneration & Environment
Rating review 0.200
Commercial rent income 0.135
Recycling contracts 0.085
Trade waste income 0.180
Subtotal Rengeneration & Environment 0.600
Total savings 3.676

Dedicated Schools Grant (DSG)

The Council will receive £156.584m Dedicated Schools Grant (DSG) in 2023/24 which is ringfenced for the education of children. From this amount the Department for Education (DfE) will recoup the funding for academies in South Tyneside and external commissioned High Needs places, which is estimated to be £48.67m.

DSG is allocated over four blocks of funding. Local authorities can only switch resources between blocks with the permission of the Schools Forum and / or Secretary of State. The four blocks through which DSG is allocated consists of:

  • Schools block (covering provision in mainstream schools from Reception to Year 11. The 2023/24 notified allocation is £115.640m before recoupment.
  • Central Services Schools block which covers commitments such as Admissions and certain prescribed statutory and regulatory duties. The 2023/24 notified allocation is £1.919m.
  • Early Years block covering nursery schools, nursery classes and Private Voluntary and Independent sector providers of early years provision (PVIs). The 2023/24 notified allocation is £10.720m
  • High Needs block covering pupils with high needs – defined by the DfE as those requiring provision costing in excess of a given threshold. The 2023/24 notified allocation is £28.305m before recoupment.

Risks & Reserves

Risk Assessment

Over the medium-term the Council faces continuing financial pressures as well as investment needs and has refocused its priorities and built budget redirections and savings targets into the spending plans for 2023 to 2028. The Council carefully identifies the things that could go wrong and might undermine the MTFP.

To do this an assessment is made of what the impact would be if these things happen and how likely they are to happen. The Council ensures that it has plans in place in case things do not turn out as expected. This is part of our risk management strategy, which underpins all that we do, not just our financial plans.

The significant financial risks are identified on the Council’s strategic risk register. They have all been assessed as part of the strategic planning process. These risks are being actively managed and the estimated financial implications have been built into this MTFP.

Some of our strategic risks have been assessed as particularly uncertain with a potentially significant financial impact. Reserves have been established for these risks.

The following table identifies the key risks to the delivery of the MTFP, the actions taken (within this financial plan) and the actions proposed to reduce the impact of these risks on the Council’s future financial position.

Strategic Financial Risk and Risk Management

Risk to the delivery of the MTFP Risk managed by: Risk rating
Risk that the demand for services (adults and children) could increase further than estimated and that the volatile demand led budgets are not rigorously managed. Revenue spending is monitored on a monthly basis as part of the Council’s corporate performance monitoring framework. Strategies to support independence, choice, early intervention and sustainability have been developed and are being implemented. High
Risk that the funding received to cover the Adult Social Care Funding Reform is insufficient to cover additional costs. An assessment of affordability will be carried out as well as actively engaging with consultations as the proposals are developed. High
The Council is unable to deliver its financial plans. The achievement of the MTFP is imperative and is monitored every month as part of our performance monitoring process incorporating challenge to budget holders and corporate oversight. Medium
Future Government plans to revise the system of funding for Local Government may result in a reduction in resources greater than already forecast. Future changes to the funding system will be analysed and the impact on resources will be factored into the MTFP. With partners we are campaigning for fair funding. Medium
The cost of commissioned care may increase due to the national living wage and inflationary pressures. The Council has anticipated cost pressures in this area within its financial plans. Medium
Financial pressures and demands associated with the national health service resulting in additional social care costs. Integrated working with health partners across the whole system of health and social care is embedded. Medium
Uncertainty over the future funding of the capital programme. We maximise the availability of capital receipts and external funding to support the capital programme thereby reducing the call on Council borrowing. Affordability of borrowing is regularly assessed and monitored. Medium
Emergency event occurs e.g. major flooding incident / loss of ICT systems / significant traffic incident / flu pandemic which incurs additional unbudgeted costs and loss of income. During the Covid-19 pandemic we lobbied for and received additional funding from Central Government. Where additional funding wouldn’t be received the Council maintains a Strategic Reserve to meet unforeseen liabilities. Medium

Planned Use of Reserves

The level of Council reserves is reviewed annually in line with CIPFA guidance. Our Reserves Policy is shown at Appendix 2.

Our forecast Use of Council reserves is shown in the table below.

Forecast use of Council reserves
Council reserves Unearmarked General Fund Reserve £m Future Funding Reserve £m Earmarked Reserves £m School Reserves £m Total Reserves £m
Balance as at 31st March 2022 7.722 16.212 42.986 2.729 69.649
Planned use of reserves in 2022/23 (3.000) (0.650) (7.850) - (11.500)
Estimated balance as at 31st March 2023 4.722 15.562 35.136 2.729 58.149
Forecast use of Council reserves 2024/28
Council reserves Unearmarked General Fund Reserve £m Future Funding Reserve £m Earmarked Reserves £m School Reserves £m Total Reserves £m
Estimated Balance as at 31st March 2023 4.722 15.562 35.136 2.729 58.149
Planned use of reserves in 2023/24 0.000 (3.000) (7.080) 0.000 (10.080)
Estimated Balance as at 31st March 2024 4.722 12.562 28.056 2.729 48.069
Estimated Balance as at 31st March 2024 4.722 12.562 28.056 2.729 48.069
Planned use of reserves in 2024/25 0.000 (1.354) (1.000) 0.000 (2.354)
Estimated Balance as at 31st March 2025 4.722 11.208 27.056 2.729 45.715
Estimated Balance as at 31st March 2025 4.722 11.208 27.056 2.729 45.715
Planned use of reserves in 2025/26 0.000 1.744 0.000 0.000 1.744
Estimated Balance as at 31st March 2026 4.722 12.952 27.056 2.729 47.459
Estimated Balance as at 31st March 2026 4.722 12.952 27.056 2.729 47.459
Planned use of reserves in 2026/27 0.000 0.344 0.000 0.000 0.344
Estimated Balance as at 31st March 2027 4.722 13.296 27.056 2.729 47.803
Estimated Balance as at 31st March 2027 4.722 13.296 27.056 2.729 47.803
Planned use of reserves in 2027/28 0.000 (0.054) (1.000) 0.000 (1.054)
Estimated Balance as at 31st March 2028 4.722 13.242 26.056 2.729 46.749

Housing Revenue Account

The Housing Revenue Account (HRA) is required to be maintained by councils who provide housing accommodation. It records the income and expenditure in relation to the management and maintenance of homes and keeps this separate from other council activity.

All rents collected are retained in this separate account; they support the management, day-to-day repairs and maintenance, and a capital investment programme which includes planned renewals, improvements to homes and major repairs.

South Tyneside Homes Limited have been delegated management of the housing service under the terms of a management agreement with the Council, approved by the Secretary of State under section 27 of the Housing Act 1985.

The Council retains a legal duty to set a budget, which avoids an unplanned deficit on the Housing Revenue Account, a duty which cannot be delegated. The Council also retains ownership of the homes, sets the level of rents and charges and is the landlord under the tenancy agreements.

The following table shows provisional HRA expenditure and income plans for the following 5 years.

HRA expenditure and income plans
Housing Revenue Account Budget Provision budget
2023/24 £m 2024/25 £m 2025/26 £m 2026/27 £m 2027/28 £m
Management 22.455 23.016 23.498 23.973 24.460
Repairs & Maintenance 17.134 17.646 18.000 18.360 18.727
Rents, Rates, Taxes, Insurance 1.168 1.190 1.211 1.235 1.251
Provision for Bad Debts 0.366 0.357 0.422 0.495 0.550
Capital Programme Investment 28.231 28.419 28.463 28.514 28.574
Debt interest 10.339 10.344 10.349 10.354 10.359
Other Capital Charges 0.052 0.054 0.055 0.056 0.057
Total Housing Revenue Account Expenditure 79.745 81.026 81.998 82.987 83.978
Rents - Dwellings (67.560) (71.715) (71.650) (73.071) (74.512)
Income - Other services/property (3.359) (3.582) (3.776) (3.994) (4.202)
Contributions & interest (3.057) (3.071) (3.022) (3.038) (3.054)
Total Housing Revenue Account Income (73.976) (78.368) (78.448) (80.103) (81.768)
(Surplus) / Deficit on Housing Revenue Account 5.769 2.658 3.550 2.884 2.210

Housing Revenue Plans for 2023/24

Rent levels are proposed to increase on average by 7% in line with government guidelines. Reserves are planned to be prudently applied in the next few years to support the Housing Capital Programme.

Service Charges for 2023/24

Most service charges for 2023/24 are proposed to be increased by 7% as set out in Appendix 3.

Tyne & Wear Pension Fund

The Council administers the Local Government Pension Scheme for the Tyne and Wear and Northumberland County areas and is responsible for agreeing the Pension Fund budget each year. The cost of the Pension Fund does not fall directly on the Council Taxpayer.

The table below summarises the spending plans for the Fund for 2023/24 and provisional spending plans for 2024/25 and 2025/26. This is due to be presented to the Pensions Committee for consideration on 31st January 2023.

Spending plans for the Fund
Revised budget Tyne and Wear Pension Fund Budget Provisional budgets
2022/23 £m 2023/24 £m 2024/25 £m 2025/26 £m
152.945 Investment Management Expenses 174.913 194.845 200.624
2.003 Investment Office 1.528 1.258 1.297
154.948 Total Investment Office 176.441 196.103 201.921
3.754 Pensions Office 3.886 4.095 4.084
1.023 Governance and Funding Service 1.064 1.096 1.201
159.725 Total Pensions Service 181.391 201.294 207.206

The budget for 2023/24 shows an increase of £21.666m over the revised 2022/23 budget. Further increases are projected of £19.903m in 2024/25 and £5.912m in 2025/26.

Investment management expenses dominate the budget. This budget has been formulated in line with industry best practice and is a full estimate of the fees, expenses and costs associated with the investment management of the Fund.

The table below analyses the budget proposal for the next three years.

Budget proposal for 2023/26
2023/24 £m 2024/25 £m 2025/26 £m
Base budget 159.725 181.391 201.294
Investment management expenses 21.968 19.932 5.779
Standstill pressures 0.597 0.137 (0.013)
Budget growth/New initiatives 0.136 0.252 0.219
Savings (1.035) (0.418) (0.073)
Revised budget 181.391 201.294 207.206

The increase in investment management expenses is attributed to increased costs related to private market investments which typically attract higher fees and expenses than quoted assets, but also have produced greater investment returns net of fees and expenses. The Fund is increasing its use of these type of investments over the next few years which is leading to a material increase in fees and expenses for the first two years.

The Investment Management expenses line also includes the costs and expenses incurred in transacting the Fund’s assets. For the next two years, significant costs are expected to be incurred in moving assets to an investment management company, part owned by the Fund, called Border to Coast Pensions Partnership. This stems from a Central Government directive whereby Local Government pension funds have been asked to combine their assets to create larger investment pools. As assets transfer to Border to Coast, costs are incurred. This however, is being offset by longer term savings and improved investment outcomes. By 2025/26, it is expected that most of the Fund’s assets will have transferred to Border to Coast and these costs will then fall out of the budget.

As in previous years the standstill pressure increases relate mainly to staffing costs and other inflationary increases included within contracts. Most of the changes in the budget relate to regulatory changes, essential development or contractual inflation and as such they are included as standstill pressures. In 2025/26, there is a small reduction in standstill pressures, this is because increased costs are offset by some temporary contracts established to help deliver some specific regulatory changes which are due to come to an end.

The growth in the budget relates to new external ICT modules to improve productivity and in 2024/25 there is £0.100m for an ICT refresh programme.

There have been a number of savings identified. The largest is in relation to the ongoing operating charges from Border to Coast, which are falling by £0.438m in 2023/24 and £0.181m in 2024/25. This is because Border to Coast is moving into a business as usual phase, with reduced development work. Further savings have been achieved over the three-year period within the ICT budget line relating to modules purchased in the previous years dropping out. The same is true for Actuarial costs which have fallen as 2023/24 is not a valuation year. The budget for progressing with overseas tax claims falls in 2023/24 and drops out of the budget in 2024/25, on the basis that the claims should all be settled in 2023/24.

Capital Strategy & Budget

Capital Investment Programme

The Capital Investment Programme sets out our investment plans over the next 5 years to support regeneration and help achieve our Ambitions as set out in the refreshed vision and newly adopted Council Strategy which is very much centred around people. We want South Tyneside to be a place where people live healthy, happy, and fulfilled lives. This will be underpinned by our ambitions, which use our resources as efficiently and effectively as possible to ensure services are provided in areas where they are needed.

As national and global uncertainty continues, we know that delivering our plans will be challenging. However, as we have done over the last decade, we will stay true to our ambitions and continue forward in partnership with the passion, determination, and resilience that have become the solid hallmark of the residents and institutions of South Tyneside.

The capital programme is financed by a mixture of external funding, Government grants, borrowing and capital receipts from sales of our assets. These receipts are generated through the disposal of Council land and buildings that are surplus to Council requirements. The target level of borrowing is affordable and consistent with our revenue budget forecasts.

External funding streams have been secured to support the funding of the programme. These include regional funds applied locally to support the overarching economic objectives of the wider region.

Building on strong foundations

Over the last decade, despite the huge challenges posed by national austerity we delivered significant investment, transformational physical regeneration and a range of service improvements some of which are detailed below:

  • £100m invested in South Shields regeneration, transforming the borough’s largest town.
  • Over £30m invested in leisure and community facilities including Hebburn Central, Jarrow Focus and Haven Point.
  • £35m invested in local roads and footpaths.
  • £200m invested in new or improved School buildings.
  • Improved connectivity, including £8.1m Arches Improvements, £21m South Shields Transport Interchange, £7.5m Lindisfarne/John Reid Road improvements and £120m Testo’s Roundabout works.
  • ‘Nationally significant’ International Advanced Manufacturing Park established, which will attract £400m private investment and create thousands of jobs (we have already attracted a new Electric Vehicle battery factory to IAMP).
  • Ongoing investment in our award-winning beaches and parks, including £3m North Marine Park improvements and £5m Littlehaven Promenade and Seawall.

Capital Programme supporting Council Vision

We have five ‘Ambitions’ – the things we want to achieve over the next 20 years to help deliver our Vision. These five Ambitions will guide everything we do. The capital programme will help support revenue investment to achieve each ambition through some of the major projects detailed below. The complete spending plan can be found with the Capital and Investment Strategy in Appendix 4.

We want all people in South Tyneside to be:

Financially Secure

Residents will be financially secure. They will have what they need for a good standard of living.

Healthy and Well

Residents will enjoy good mental and physical health throughout their lives. They will have the best start in life and be able to age well.

South Tyneside Council manage 43 traditional playgrounds, 20 multi use games areas and 10 outdoor fitness areas as of the end of 2021. Much of the current play equipment is now over 10 years old and is beginning to fail and is putting a drain on revenue budgets. Planned investment over the next 5 years will Improve and replace some of the children’s play equipment and make some more accessible for users with disabilities to make playgrounds inclusive for all.

Wheelchair accessible roundabout at North Marine Park

Other programmes include:

  • Works to improve road safety for school children outside the front of schools.
  • An additional classroom at Seaview to provide a more specialist environment for SEND children to be taught and supported.
  • Additional classroom, science laboratories and food technology areas to accommodate increase in pupil numbers at Mortimer School.
  • Delivering Strategic Cycling / Walking improvements to provide increased connectivity to jobs, education, neighbourhoods and to our attractions.

Connected to jobs

Residents will have access to jobs, skills, and learning. They will have the skills and confidence to apply for a wide range of quality local jobs. These jobs will be in key and growing areas of employment and benefit all our borough.

Work has already started to relocate South Tyneside College into South Shields Town Centre and we will work with the College to equip local people with the skills and qualifications needed for future opportunities in the low carbon, digital and advanced manufacturing sectors as well as much needed capacity within our health and care workforce including the development of our care academy.

As well as new College buildings, the project includes plans for new campus accommodation, public realm improvements and the restoration of a Grade II listed building in Barrington Street.

Image of how South Tyneside College site could look

Other programmes include:

  • Continued investment through the flags to flexible programme which is substantially improving the conditions of our footpaths, reducing long term maintenance issues and improving accessibility for disabled highways users.
  • External funding from the Department for Transport utilised for carriageway resurfacing and various road safety initiatives to support the highways asset management plan.
  • In partnership with Sunderland City Council we are continuing to develop a joint strategic employment site, the International Advanced Manufacturing Park (IAMP), north of Nissan and west of the A19. The development is well underway with over 550,000 sqft of bespoke industrial space delivered over 3 units and a further 1 million sqft development under construction that will become the base for the region’s first gigafactory.

Part of strong communities

Residents will live in clean, green, and connected communities where they feel safe.

The Council continues its transformation of Holborn Riverside into a vibrant mix of new dwellings and office space. This project will see the development of sustainable businesses and residential communities which broaden the South Tyneside offer and builds upon previous investment in South Shields Town Centre.

Holborn civil engineering works delivering major ground improvements, removing redundant structures and alleviating flood risks to help support future development.

The Council is also committed towards a sustainable future, striving towards carbon neutrality across Council buildings and operations by 2030.

Other programmes that contribute towards this agenda and ambition include:

  • Continued investment in renewable energy schemes at Hebburn, Holborn Renewable energy centre and Viking energy network Jarrow to utilise a combination of renewable technologies to create an innovative energy network, to provide heating and electricity to a number of buildings. These schemes have the potential to cut carbon emissions by 22% whilst saving the Council more than £800k per year.
  • Using externally sourced funds to deliver the Stronger Shores project which will deliver a number of innovative resilience actions, including restoration of sub tidal habitats to protect against coastal erosion and flooding.
  • Demolition of the former caretaker bungalow at South Shields crematorium to extend the current car parking facilities due to increased demand for available parking spaces.
  • A fleet replacement programme, projected over the next 8 years, intended to renew and replace vehicle assets at the optimum time to drive maximum value and usage whilst at the same time minimising the exposure to increased maintenance, repair, running and hire costs.
  • The Housing capital programme will ensure that homes we maintain are safe for the tenants within them and that they are compliant with all regulations whilst ensuring sustainability across the borough.
  • The development of specialist accommodation including for adults with learning disabilities and or autism and the exciting plans for our new extra care schemes all support our commitment for people to remain a part of their communities.

And we want these things for every resident, so we are committed to:

Targeting support to make things fairer

We will target support at the residents and parts of our borough that need it the most, reducing inequalities and making things fairer.

Image of how children's assessment centre could look

We have submitted plans to develop a purpose built children’s assessment centre at Seton Avenue, South Shields and two new children’s homes, one in Jarrow and one in Hebburn to provide additional residential capacity to ensure more children from South Tyneside are able to be supported within the borough.

The new homes would cater for children who for whatever reason cannot live with their birth families.

Currently there is only one Children’s residential home in the borough accommodating a maximum of up to four young people at once, this means that young people cannot always be accommodated in the borough close to friends and family.

Other programmes include:

  • Continued investment in its 5 Community Area Forums (CAFs), each covering a particular area of the borough. The role of the CAFs is to discuss matters important to local people to provide a proactive service within local areas such as clean streets, fly tipping, anti-social behaviour and tenancy related issues.
  • Community improvements - This project will manage the current condition or manage improvements to sites to increase the site sustainability, safety and provide future development opportunities.

2023-28 Capital Programme

The provisional five-year Capital Programme for 2023-28 linked to the Councils Vision and ambitions is shown below. A breakdown of the individual projects within each year is detailed within the Capital and Investment Strategy at Appendix 4.

Chart described in table below
2023-28 Capital spend linked to Ambition
Ambition 2023/24 Gross (£m) 2024/25 Gross (£m) 2025/26 Gross (£m) 2026/27 Gross (£m) 2027/28 Gross (£m)
Healthy and well 3.800 0.840 2.640 0.800 8.680
Part of strong communities 60.902 70.262 43.364 43.224 252.646
Connected to jobs 22.171 15.422 9.649 7.654 62.430
Targeting support 4.288 2.418 2.418 2.418 13.960
Enabling 6.590 5.100 4.600 4.600 25.490

The estimated funding of the five year capital programme is shown below. A breakdown of each year is detailed in the Capital and Investment Strategy at Appendix 4.

Chart described in table below
Funding of the Capital Programme 2023-28
Capital Programme By Funding 2023/24 2024/25 2025/26 2026/27 2027/28 Total
£m £m £m £m £m £m
Council General Fund Programme
External Funding 40.016 42.274 17.094 17.924 11.524 129.282
Capital Receipts 3.000 2.000 2.000 2.000 2.000 11.000
Revenue Contribution to Capital 1.000 1.000 1.000 1.000 1.000 5.000
Borrowing 25.495 20.078 14.337 9.532 7.122 76.564
Total Council General Fund Programme 69.511 65.802 34.431 30.456 21.646 221.846
Housing Programme (funded from the Housing Revenue Account)
Revenue Funding of Housing Capital programme 28.240 28.240 28.240 28.240 28.400 141.360
Total Housing Programme 28.240 28.240 28.240 28.240 28.400 141.360
Combined Housing and General Fund Programme 97.751 94.042 62.671 58.696 50.046 363.206

Treasury Management

The Treasury Management and Annual Investment Strategy is a requirement of the Local Government Finance Act 1992, the Local Government Act 2003, the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003, the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management, the CIPFA Prudential Code for Capital Finance in Local Authorities and guidance on Investment Practice from the Department for Levelling Up, Housing and Communities.

It is a statutory requirement of the Local Government Finance Act 1992 that the Council produces a balanced budget. Section 31(a) of the Act requires a local authority to calculate its budget requirement for each financial year to include the revenue costs that flow from capital financing decisions. This means that increases in capital expenditure must be limited to a level whereby increases in charges to revenue from:

  • increases in all debt charges to include Minimum Revenue Provision caused by increased borrowing to finance additional capital expenditure, and
  • any increases in running costs from new capital projects are limited to a level, which is affordable within the projected income of the Council for the foreseeable future.

The Local Government Act 2003 requires the Council to set out its Treasury Strategy for borrowing and to prepare an Annual Investment Strategy.

The Council has adopted the CIPFA Code of Practice on Treasury Management in the Public Service. Within this document Treasury management is defined as:

The management of the local authority’s borrowing, investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities: and the pursuit of optimum performance consistent with those risks.

The Treasury Management Strategy included at Appendix 6 to this report comply with the CIPFA Code, which requires the Treasury Management Strategy to be approved by the Council prior to the start of the financial year.

The Local Government Act 2003 also requires the Council to “have regard to” a further CIPFA Code called “The Prudential Code for Capital Finance in Local Authorities”.

The key objectives of the Treasury Management Code and the Prudential Code are to ensure, within a clear framework, that the capital investment plans of local authorities are affordable, prudent and sustainable and that Treasury Management decisions are taken in accordance with good professional practice.

To demonstrate that local authorities have fulfilled these objectives, the Treasury Management Code and the Prudential Code set out indicators that must be used and factors to be taken into account. The indicators and factors that apply to Treasury Management are contained in the Strategy attached at Appendix 6 to this report.

The Treasury Management Strategy and the Annual Investment Strategy have both been discussed and agreed with the Council’s Treasury Management Adviser, Link.

The Council’s Treasury Management covers two areas:

Part 1 – South Tyneside Consolidated Loans Fund
This covers the Council’s borrowings and contains the Treasury and Prudential Indicators required by the Treasury Management Code and the Prudential Code.
Part 2 - Annual Investment Strategy
This concerns the investment of the cash balances of the Council. Priority is given to the security of the capital sum and the liquidity of investments.

Appendix 1: Council Revenue Budget 2023/24

Council Revenue Budget 2023/24
Line Council Revenue Budget Total Total 2022/23 Staffing 2022/23
Ref   Expenditure £ Income £ Budget £ No of Posts FTE's
Business and Resources
1 Corporate Finance / Benefits and Customer Services 92,297,420 (111,220,260) (18,922,840) 170 151.12
2 Digital & ICT Services 7,084,120 (1,768,610) 5,315,510 96 90.00
3 Leisure and Libraries 8,673,540 (6,799,500) 1,874,040 271 187.69
4 Corporate Assurance 1,634,820 (1,149,530) 485,290 7 6.52
5 Human Resources & Organisational Development 3,386,230 (1,243,420) 2,142,810 67 63.38
6 Tourism, Culture and Events 1,306,110 (222,600) 1,083,510 7 5.30
Sub Total Business And Resources 114,382,240 (122,403,920) (8,021,680) 618 504.01
7 Pensions Office 181,391,000 (181,391,000) 0 85 78.00
Sub Total Pensions 181,391,000 (181,391,000) 0 85 78.00
Total Business and Resources 295,773,240 (303,794,920) (8,021,680) 703 582.01
Governance & Corporate Affairs
8 Legal and Governance 2,359,890 (1,174,160) 1,185,730 45 32.87
9 Management & Policy 725,100 (52,500) 672,600 6 6.00
10 Performance & Change Management 1,105,890 (443,690) 662,200 26 24.59
11 Communications, Engagement & Support Services 5,465,200 (1,169,950) 4,295,250 124 112.33
Total Governance & Corporate Affairs 9,656,080 (2,840,300) 6,815,780 201 175.79
Regeneration and Environment
12 Environment 26.239,800 (10,361,200) 15,878,600 215 186.13
13 Economic Growth 7,150,240 (6,404,600) 745,640 35 32.01
14 Regeneration & Housing 27,582,640 (12,144,080) 15,438,560 390 238.04
15 Infrastructure & Transport 9,345,630 (10,027,080) (681,450) 158 116.92
Total Regeneration and Environment 70,318.310 (38,936,960) 31,381,350 798 573.10
Children's Social Care, Learning and Early Help
16 Children and Families Social Care 32,826,100 (5,667,400) 27,158,700 261 228.70
17 Learning and Early Help 47,557,400 (30,636,000) 16,921,400 656 473.18
Sub Total Children's Social Care, Learning and Early Help 80,383,500 (36,303,400) 44,080,100 917 701.88
Adult Social Care And Commissioning
18 Adult Social Care 108,058,470 (46,432,460) 61,626,010 309 269.61
19 Commissioning & Quality Assurance 2,521,030 (1,003,400) 1,517,630 49 45.50
Sub Total Adult Social Care and Commissioning 110,579,500 (47,435,860) 63,143,640 358 315.11
Public Health
20 Public Health 15,144,410 (219,600) 14,924,810 14 13.30
Public Health 15,144,410 (219,600) 14,924,810 14 13.30
Schools Delegated
21 Delegated Schools Budget 107,913,877 (107,913,877) 0 - -
Sub Total Schools Delegated 107,913,877 (107,913,877) 0 - -
Total Council Revenue Budget 689,768,917 (537,444,917) 152,324,000 2,991 2,361.19

Appendix 2 Reserves Policy

The requirement for financial reserves is recognised in statute by sections 32 and 43 of the Local Government Finance Act 1992. Councils must have regard to the level of reserves needed for meeting estimated future expenditure when calculating the budget requirement.

Reserves can be held for a variety of purposes such as to cushion the impact of unexpected events and emergencies or as a means of building up funds to meet known or predicted liabilities.

The principles used by the Chief Financial Officer (CFO) to assess and advise on the adequacy of reserves when setting the budget ensure that account is taken of the strategic, operational and financial risks facing the Council. This includes for example the Council’s record in budget and financial management, its capacity to manage in-year budget pressures and the current and projected external financial environment. Under the Local Government Act 2003, the CFO must report to Council on the adequacy of reserves. As an ultimate backstop, the CFO is required to report to all councillors under section 114 of the Local Government Finance Act 1988 in the event that reserves are seriously depleted and has the impact of suspending spending except to meet statutory obligations.

In accordance with good financial practice, the Council holds a number of reserves as below:

Unearmarked General Fund Reserve
This reserve is held to manage the impact of any unplanned overspends within the Council’s General Fund budget. The policy objective is to hold a minimum balance in this reserve of £10m.
Future Funding Reserve
This reserve is held to support medium-term requirements to balance the budget taking account of changes to grant funding, inflationary and demand pressures, financial shocks as well as investment needs. The policy objective is to hold a minimum balance of £10m within this reserve.
Various Earmarked Reserves
These are held to meet expected and potential liabilities or specific investment requirements. Examples include emergency events such as unforeseen financial costs or dealing with a natural disaster, claims against our self-insurance fund, future payments due under PFI contracts, ongoing commitments following the Covid-19 pandemic, monies to support economic development, volatility within the Collection Fund which deals with the income and expenditure relating to council tax and business rates etc. It also includes reserves ringfenced by statute such as the Housing Revenue Account and reserves held on behalf of schools.

Appendix 3 Housing Revenue Account Service Charges

Landlord Charges - Services & Facilities
2022/23 Charge Change 2023/24 Charge
£/wk % £/wk
Garage rents £6.70 7.0% £7.20
Tenant Heating Charges Hebburn Newtown 1-bed £4.10 10.0% £.4.50
Hebburn Newton 2-bed £11.10 10.0% £12.20
Jarrow Energy tariff p/kwh £0.11 10.0% £0.12
Housing Plus - Landlord Charges for Scheme Managers and Communal Facilities
2022/23 Charge Change 2023/24 Charge
£/wk % £/wk
Service Charges Purpose built flats with scheme manager & communal facilities £14.20 7.0% £15.20
Group dwellings with scheme manager & nearby communal facilities £6.30 7.0% £6.70
Guest Room Charges Charges for overnight stay or emergency situations per night £13.00 7.0% £13.90
Furnished Tenancy Scheme Charges
2022/23 Charge Change 2023/24 Charge
£/wk % £/wk
Furniture options New Tenancies supplied with a package of furniture and Electrical Goods - Option 1 Points up to 110 £23.88 7.0% £25.55
New Tenancies supplied with a package of furniture and Electrical Goods - Option 2 Points up to 160 £31.82 7.0% £34.05
New Tenancies supplied with a package of furniture and Electrical Goods - Option 3 Points up to 200 £39.74 7.0% £42.52
New Tenancies supplied with a package of furniture and Electrical Goods - Mini Option Points up to 60 £15.23 7.0% £16.30
Decent Homes decant properties supplied cookers £6.21 7.0% £6.64
Caretaker and Concierge Charges
Caretaker and Concierge Charges Caretaker Concierge
2022/23 Charge £/wk Change % 2023/24 Charge £/wk 2022/23 Charge £/wk Change % 2023/24 Charge £/wk
Durham Court £3.10 7.0% £3.30 £11.10 7.0% £11.80
Ellen Court £7.80 7.0% £8.30 £11.10 7.0% £11.80
Monastery Court £7.80 7.0% £8.30 £11.10 7.0% £11.80
Wilkinson Court £7.80 7.0% £8.30 £11.10 7.0% £11.80
Support Service Charges - Supporting People
Support Service Charges - Supporting People 2022/23 Charge £/wk Change % 2023/24 Charge £/wk
Community Alarms - Support
Council Tenants Standard - Hardwired or Solo Unit £3.30 7.0% £3.50
Council Tenants Enhanced - Hardwired or Solo Unit £5.00 7.0% £5.40
Scheme Managers - Support
Council Tenants Scheme Managers - Support Services £12.20 7.0% £13.10
Other Specific Service Charges
Other Specific Service Charges 2022/23 Charge £/wk Change % 2023/24 Charge £/wk
Council - HRA Temporary Accommodation
1-bed accommodation £27.90 7.0% £29.90
2-bed accommodation £39.30 7.0% £42.10
3-bed accommodation £57.30 7.0% £61.30
Tenants - Housing Plus Heating Charges
Tenants - Housing Plus Heating Charges 2022/23 2023/24
Cost per property per wk. - Bed Sit Cost per property per wk. - 1 Bed Cost per property per wk. - 2 Bed Cost per property per wk. - Bed Sit Cost per property per wk. - 1 Bed Cost per property per wk. - 2 Bed
Davies Hall £0.00 £11.16 £13.43 £0.00 £12.28 £14.77
McIntrye Hall £0.00 £12.43 £0.00 £0.00 £13.67 £0.00
Birch Grove £0.00 £13.28 £0.00 £0.00 £14.61 £0.00
Calf Close £0.00 £10.58 £12.71 £0.00 £11.64 £13.98
Porlock House £0.00 £10.13 £12.20 £0.00 £11.15 £13.42
Bishop Ramsey £0.00 £11.02 £13.22 £0.00 £12.12 £14.54
Farding Lake £0.00 £10.45 £0.00 £0.00 £11.49 £0.00
Prince Ed Court £0.00 £9.37 £11.22 £0.00 £10.31 £12.35
Blenkinsop House £6.45 £7.16 £0.00 £7.10 £7.88 £0.00
Borrowdale House £0.00 £7.31 £0.00 £0.00 £8.04 £0.00
Huntcliffe House £0.00 £7.94 £0.00 £0.00 £8.73 £0.00
Inskip House £0.00 £9.80 £0.00 £0.00 £10.78 £0.00
Wingrove House £0.00 £9.73 £11.74 £0.00 £10.70 £12.91
Clayside House £0.00 £8.39 £0.00 £0.00 £9.23 £0.00
Glenthorpe House £0.00 £10.92 £13.15 £0.00 £12.01 £14.46
Hallgarth House £0.00 £10.51 £12.65 £0.00 £11.56 £13.91
Julius Court £0.00 £8.59 £0.00 £0.00 £9.44 £0.00
Thomas Bell SA £0.00 £11.26 £0.00 £0.00 £12.38 £0.00
Patrick Cain House £0.00 £8.72 £10.51 £0.00 £9.59 £11.56

Tenants Heating Charges - 10% increase on all Housing Plus establishments for 2023/24

Tenant Communal Cleaning Charges
  Cost per property per week 2022/23 Cost per property per week 2023/24
High Rise Properties
Durham Court £1.80 £1.90
Mid Rise Properties
Dean Road £3.00 £3.20
Laygate & Trinity £2.90 £3.10
Whiteleas £3.00 £3.20
Green Lane £6.00 £6.40
Tyne Dock £4.10 £4.40
Galsworthy Road £3.00 £3.20
River Drive £0.90 £1.00
Mowbray Road £1.30 £1.40
Stewart & Fulwell £0.80 £0.90
Sheltered Housing
Birch Grove SA £7.70 £8.20
Bishop Ramsay SA £8.50 £9.10
Blenkinsop House SA £4.10 £4.40
Borrowdale House SA £7.20 £7.70
Calf Close House SA £6.00 £6.40
Cheviot House SA £6.60 £7.10
Clayside House SA £6.00 £6.40
Curren House SA £9.80 £10.50
Davies Hall SA £9.50 £10.20
Farding Lake SA £7.00 £7.50
Fernyhough Hall SA £5.50 £5.90
Glenthorpe House SA £6.00 £6.40
Hallgarth House SA £5.60 £6.00
Henley House SA £7.30 £7.80
Huntcliffe House SA £8.20 £8.80
Inskip House SA £7.20 £7.70
Julius Court SA £5.60 £6.00
Lincoln Court SA £8.50 £9.10
McIntyre Hall SA £7.50 £8.00
Patrick Cain House SA £8.70 £9.30
Porlock House SA £6.20 £6.60
Prince Edward Court SA £9.40 £10.10
Thomas Bell SA £6.70 £7.20
Wingrove House SA £5.60 £6.00
Leaseholder Charges
Management Fee Cost per property per annum 2022/23 Cost per property per annum 2023/24
All Leaseholders £134.60 £134.60

Appendix 4 Capital and Investment Strategy 2023-28

Please see Capital and Investment Strategy: 2023-2028

Appendix 5 Minimum Revenue Provision Policy Statement

  1. The Minimum Revenue Provision (MRP) is the charge made to the revenue account to reflect repayment of borrowing over the useful life of the assets that have been funded from that borrowing. The Council has regard to the guidance issued by the Secretary of State under section 21(1A) of the Local Government Act 2003 and any subsequent updates.
  2. MRP is charged in the year following that in which an asset is brought into use.
  3. MRP will be spread over a period which reflects the life/beneficial use of the asset and is normally no more than 50 years. A longer life may be given if it is deemed by a professional that the asset life will exceed 50 years.
  4. These periods are determined for MRP purposes only, and the Council may account for depreciation of assets differently under the Code of Practice on Local Authority Accounting, after having had regard to the different conditions that apply for such accounting purposes.
  5. The Council has in place a loan finance facility with South Tyneside Housing Venture Trust Limited. MRP will be charged to match the annuity loan repayment profile from the Company over the life of any loans issued as part of this agreement. Should the Council wish to switch the type of loan repayment profile to Equal Instalments of Principal then the Council reserve the right to do this. The Council also has a finance agreement with Centaurea Homes Limited. MRP will be charged in the year the loans are repaid and will match the value of the principal repayment. For any future finance agreements that the Council enters into, the MRP charged will be matched to the loan repayment profile, including for PFI and finance lease arrangements.
  6. The Council also determines that available resources for financing capital expenditure, such as capital receipts and external funding, will be applied to new expenditures in a manner that is considered appropriate in any financial year. For example, it will be considered financially efficient to apply such resources in the first instance to expenditures that have a shorter estimated lifespan. Capital receipts may also be utilised to partially offset some or all of the MRP charge due for the year.
  7. It is the Council’s intention to either apply housing receipts to appropriate capital schemes or to use them as a means of repaying debt, whichever is deemed more appropriate.
  8. In cases where expenditure is incurred on only part of a scheme which is not completed by the year end, any grant or similar financing resources will be either allocated to other new expenditures or carried forward as appropriate. Final decisions regarding the manner in which such resources are to be allocated to schemes will be taken under delegated powers.

Appendix 6 Treasury Management Strategy 2023/24

Please see Treasury Management Strategy 2023/24

Appendix 7 Pay Policy Statement

Please see Pay Policy Statement

Appendix 8 Rent Setting Policy 2023

Please see Rent Setting Policy 2023