Councillors in Gateshead have unanimously approved a new strategy around tackling poverty, but members clashed with the Reform administration over plans to cut council tax support. While there was considerable support for the new Tackling Poverty Together Strategy, some members felt its aims were at odds with the proposal to cut the support scheme.
Poverty strategy aims
A report presented to members on the new poverty strategy stated that the "root causes and drivers of poverty will be addressed to reduce and prevent poverty in the longer-term". It pointed out that over 30.7% of children in the borough live in poverty while 19% of adults are in "problematic debt".
The Reform-led council is currently consulting on changes to the system that could see low-income residents’ minimum contribution upped from 8.5% to 10%. The move could save the council around £200,000 amid warnings of significant financial pressures.
Council response
Speaking at Thursday's meeting of the council, deputy leader Fiona Pearce said: "The strategy recognises that tackling poverty needs a whole system approach. This is a shared vision for the next decade, built on principles of dignity, partnership and long-term change.
"It is not simply about responding to the crisis - it's about addressing the causes of poverty. It will ensure consideration of poverty is embedded in decision making across all departments.
"We are encouraged by the collaborative approach that underpins this work. There is a shared determination to create lasting change for our residents.
"The strategy is ambitious, evidence-led and focused on improving wider outcomes. We are looking forward to working with councillors to deliver meaningful change."
Opposition concerns
While adopting the strategy was backed unanimously, opposition members raised concerns about the proposed changes to council tax support. A council calculation, based on a single resident aged over 25 living in a band A property, receiving Universal Credit as their sole income, found that the weekly minimum contribution may rise from £2.21 to £2.60 under the proposed changes.
Labour's Coun Denise Robson said: "This is an excellent piece of work that has been in progress for some time. So why is the council at the same time discussing cutting back the council tax support scheme?
"It's a total contradiction. Heating and food costs are also rising and these things we can't control."
Reform councillor Lindsay Atkinson replied: "Nobody wants struggling families to pay more. However, there is the massive scale of the financial pressure we're now under.
"We are expected to find £11 million in savings. After years of a Labour administration, the people are entitled to ask questions - where has all the money gone? Why are the finances under so much pressure?
"Residents deserve facts and figures and a sustainable plan - not just political point-scoring."
Scheme details
The administration has said the "modest" increase for individual residents would save the council £200,000. The scheme also includes a "discretionary element" of £25,000 to support Gateshead's "most vulnerable" residents in "exceptional circumstances".
The details of the proposed council tax support scheme changes have been publicly available on the authority’s website since Monday, September 14.
