Residents in Gateshead, Tyne and Wear, are facing a proposed 4.99% increase in council tax as the local authority seeks to close a shortfall in its 2026/27 budget. Gateshead Council ran a public consultation on the proposal from 15 December 2025 until 25 January 2026.
If the plan is approved at the council’s final budget meeting in late February 2026, the council estimates that about 60% of homes (mostly Band A properties) would see an increase of roughly £1.45–£1.50 a week. For Band D properties the extra charge is estimated at about £2.15 a week. The new rates would take effect from 1 April 2026 if approved.
Cllr Martin Gannon, leader of Gateshead Council, said the increase is needed to protect adult social care and services for older and vulnerable residents. The council’s Medium Term Financial Strategy (MTFS) warns of a significant medium‑term funding gap: the MTFS estimates a cumulative shortfall of about £34.4m across the planning horizon to 2029/30 if savings and interventions are not delivered.
To balance the 2026/27 budget the council has set out a package of measures that includes efficiencies, social‑care interventions, the planned use of earmarked and budget‑sustainability reserves, and proposals that could put up to around 200 posts at risk. Local campaign groups and residents have voiced concern on social media and to local media about rising bills coinciding with reductions or changes to some leisure and community services.
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