Frontline services in Gateshead could be hit with “urgent” cuts as council bosses weigh up drastic action in a bid to avoid financial ruin.
It was revealed on Tuesday that two of the town’s leisure centres are facing closure after being deemed “unaffordable”. But the economic crisis hitting local authorities across the country could soon see more public services being scaled back imminently.
Councillors heard this week that Gateshead Council is currently expecting to overspend its budget by £6.5m this year – and faces a colossal shortfall of £55m over the following five, even when taking into account plans to spend more than £45m of its cash reserves to combat the huge deficit. Tuesday’s cabinet meeting was told that the local authority was in the midst of an “unprecedented” situation caused by spiralling inflation, a national economic crisis and rocketing demand for social care services.
