Council budget for the next 12 months agreed
A budget for the next financial year has been agreed by the City Council.
The City Council met from 4pm on Wednesday 4 March.
Plans backed for the budget include new investments of £55m into schools and infrastructure.
For helping to fund day-to-day spending such as waste and recycling or care services, it was agreed the Sunderland Council Tax increase would be 2.50 per cent towards more than 600 core services. There is also a 2 per cent Adult Social Care precept to help support the city's most vulnerable residents.
The council tax increases are expected to raise around £7.6m towards vital services.
Leader of Sunderland City Council, Councillor Michael Mordey said: "Working with our invaluable partners we are committed to making Sunderland a dynamic, healthy, vibrant and connected city, with opportunities for all. The investments set out in this year's budget are essential to achieving these ambitions.
"We remain committed to delivering world‑class regeneration, supporting job growth, improving health outcomes, enhancing skills and education, and ensuring Sunderland is a place residents are proud to call home."
Supporting adult social care is a key part of the budget with an extra £12.8m allocated for next year. Adult social care is the biggest part of the council's day-to-day budget spending at around 30 per cent.
On highways, a further £1m is being made available to repair potholes.
The 4.5 per cent council tax increase is within the 5 per cent referendum limit set by the Government, and will result in an increase of £1.04p a week for a Band A property - the majority of properties in Sunderland. The benchmark Band D increase would be £1.55p a week towards council services.
2026/27 - Council Tax* |
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Valuation Band | Properties in Base | Current Council Tax* | Proposed Annual Increase | Proposed Council Tax* | Of which Relates to Social Care Precept 2% |
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A | 80,346 | 1,197.32 | 53.88 | 1,251.20 | 23.95 |
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B | 20,159 | 1,396.87 | 62.86 | 1,459.73 | 27.94 |
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C | 18,459 | 1,596.43 | 71.84 | 1,668.27 | 31.93 |
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D | 10,188 | 1,795.98 | 80.82 | 1,876.80 | 35.92 |
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E | 3,827 | 2,195.09 | 98.78 | 2,293.87 | 43.90 |
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F | 1,240 | 2,594.19 | 116.74 | 2,710.93 | 51.89 |
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G | 699 | 2,993.30 | 134.70 | 3,128.00 | 59.87 |
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H | 60 | 3,591.96 | 161.64 | 3,753.60 | 71.84 |
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Total number of properties | 134,978 |
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* Figures for Sunderland City Council, not including Hetton Town Council, police and fire service precepts. | |||||||||
The budget also has a savings programme of £600,000 and it will all be balanced by using £9.679m of reserves.
The council tax increase is in line with national guidelines and the benchmark Band D is expected to remain the lowest in the North East. Overall, Sunderland's council tax currently raises around £16 of every £100 the council spends as most of the council's income comes from Government grants.
The council's total planned expenditure on services for 2026/2027 is £907.8m. The budget was agreed by 37 votes to 16.
