Job losses could be on the cards after more than £10 million in cuts were proposed for the next Gateshead Council budget.
Gateshead Council bosses approved this morning to start “internal consultations”, with employees and trade unions on staff impacted by this year’s budget proposals. There remains a 2026/27 funding gap of £20.5mn in the council’s medium-term financial plan.
It has been proposed to plug the gap by using £4m in reserves, implementing £5.9mn of social care interventions, and searching for £10.6mn in cuts and “efficiencies”. The government’s funding to Gateshead Council also assumes a 4.99% increase in council tax, which includes a 2.99% increase in the adult social care charge.
The council’s budget update states: “This report will launch the formal statutory redundancies consultation for employees identified as at risk from the workforce budget savings proposals. Workforce integrated impact assessments have been drafted and will be further developed following the consultation and engagement with affected employees and trade unions.”
The exact extent of potential employee cuts is unknown and exempted from public view as it could lead to the identification of individuals. Any decisions made on the work force would be implemented by April 2026. The final decision on the budget will need to be passed by full council on February 24, 2026.
The report continues: “The council recognises there are huge financial pressures on not just council resources but those of partners, local businesses, and residents. To deliver on the strategic approach the council will need to continue to be resolute in its determination to make Gateshead a place where everyone thrives.”
The council is also still currently holding a public consultation on its budget proposals which is open until January 25.
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