Gateshead Council leaders recommended a new budget on 17 February, 2026 that aims to build 1,600 new homes and create jobs in Tyne and Wear while increasing council tax. This plan sets out how the local authority will spend money over the next year to improve the community and support residents who need it most.
The proposal includes an investment plan worth more than £709 million over five years to improve the town centre and build new housing in the Baltic Quarter. Residents can also expect improvements to local street lighting, better broadband access, and more support for children who have additional needs.
To pay for these projects and manage a funding shortfall of about £20.5 million, the council plans to increase council tax by 4.99 per cent. This total includes a 2.99 per cent general increase and a 2 per cent charge used specifically to help pay for adult social care services.
Along with the tax rise, the council needs to find £10.6 million in savings, which has led to a formal consultation regarding potential job losses for staff members. However, the budget also introduces a new rule that would mean terminally ill residents no longer have to pay council tax.
Councillors will make a final decision on these proposals during a public meeting on 24 February, 2026. If approved, the changes to taxes and local services will begin to take effect from the start of the new financial year in April 2026.
