Council budget

An introduction to the council's budget and how we spend money.

How we set our budget

Each year the council must, by law, set a balanced budget.

That means the amount we expect to spend is no more than the amount of money we expect to receive.

Every year since 2010 setting a balanced budget has been harder and harder as the amount of money we receive has reduced and inflation has increased costs.


A line chart showing how funding cuts and cost pressures add up to a projected £408 million reduction in Newcastle City Council's budget between 2010 and 2026

Making savings

To balance the budget we have had to make hundreds of millions of pounds of savings. And in the coming year, and the years beyond, we will need to find more savings. We must do this while maintaining the essential services that communities rely on.

So far we have needed to make savings of £347 million - that's equivalent to more than £2,500 per household in Newcastle.

In the financial year 2023 to 2024 our services need to save £23.1 million.

We expect to have to make further savings of £23.1 million 2024 to 2025 and £21.2 million in 2025 to 2026.

That is a total of £67.4 million over the next three years.

Some of these budget reductions have had an impact on services, however, many have been achieved by:

  • finding alternative and more cost-effective ways to deliver the same level of service
  • improving efficiency
  • generating more income

Budget consultation

Each year, to help us with the tough decisions we have to make to balance the books, we consult residents about proposed changes and where you think we should make savings.

Our most recent consultation took place from:

  • November 2022 to January 2023

Having consulted we collect and analyse all of the feedback received, alongside any other announcements that impact on our finances.

Setting the budget

Following the consultation a revised budget is discussed by our Cabinet, then goes to be debated at a meeting of the full City Council. If agreed the budget is then set for the coming year.

The budget for April 2023 to March 2024 was agreed by full council on March 1 2023.