City Council budget and Council Tax

The proposed increase follows Government guidelines and was endorsed today (Tuesday 9 February) at the council's Cabinet meeting. Final decisions are due at the budget meeting on Wednesday 3 March.

Subject to March's decision, the majority of Sunderland households would be paying less than £1 a week extra next year towards city services.

As part of its budget proposals, the council is also extending the Local Council Tax Support scheme, which will see eligible households get up to £150 off their bills. Current estimates are that around 16,500 working age claimants will pay no council tax in relation to next year.

Demand for adult social care continues to grow and the three per cent precept is expected to raise around £3m. For 2020/21 the adult social care budget was £157m and it is the biggest part of the council's day to day spending at 23 per cent.

A major investment programme to bring in more new homes, improve infrastructure, and promote economic growth is also part of this year's budget and the ongoing City Plan for a dynamic, healthy and vibrant Sunderland.

Outlining council tax details at the Cabinet meeting, the council's Deputy Leader Councillor Paul Stewart said: "The council has done its best to protect residents from the impact of the cuts since 2010. The compound impact of the Government's significant and disproportionate funding reductions in previous years, combined with unavoidable unfunded cost pressures, means we are once again faced with very difficult decisions.

"Raising council tax is one of those difficult decisions. If we do not raise council tax, we will need to cut services further and reduce our investment into key priority areas. That would mean cuts in services to those most vulnerable in our communities and to the services which residents tell us are a high priority. 

"Indeed, in its financial settlement, the Government assumes that all councils will raise council tax by the maximum permitted level - in our case 4.99 per cent. You will hear the Government say that they are increasing funding for local government - unfortunately nationally over 87 per cent of the increase is to be raised locally through council tax."

He said the council, which has had its spending powers reduced by a third since 2010, would continue to 'lobby the Government for a true fair funding agreement' and the financial outlook remained 'very uncertain'.