'Hunger games' warning as council changes cashpot rules

Parish councils are facing 'hunger games' - in a heightened battle to get their hands on taxpayers' cash. Parish and town councils across Newcastle borough have had access to a £30,000-a-year cashpot which was designed to help struggling families with their council tax payments.

But the fund has been dominated by three parish and town councils and the money spent on other things including flower-beds and allotments - to leave six parish councils receiving less than £300-a-year.

Now Newcastle Borough Council is set to change the scheme by handing each councillor a £500 annual budget and widening it out to include community groups too. It means Kidsgrove Town Council could lose £13,000 and Audley Rural Parish Council £4,300.

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The issue was raised at this month's meeting of the council's finance, assets and performance scrutiny committee.

Councillor Mike Stubbs said: “It’s certainly going to be a hunger games now that anybody from a charitable group, from any community group can bid in for that money. So that is a direct loss to all parish councils that will be passed on to taxpayers in parished areas because they’ve got to find that money.

“That money has got to be replaced, we won’t stop doing things because that money has been taken away. Precepts will have to be made, savings will have to be made. What I’m saying is, all you’re doing there is passing the cost on to residents who live in parish areas because they’ll all have to cover it. You’re taking that money away, there’s a loss; it has to be covered.”

The cashpot is included in the council's proposed 2025/26 budget.

Councillor Stephen Sweeney, cabinet member for finance, town centres and growth, said: “The civic pride approach empowers our communities to take action which is led by the council to boost pride in areas across the borough and to strengthen its reputation as a place which is clean, safe and friendly. Following the implementation of the campaign in October 2024, the council and its partners have rolled out civic pride across the borough.

“Now there is an opportunity for groups to make a difference through an enabling investment fund for each ward in the borough to help the community get started in delivering their own local civic pride projects. The fund provides a flexible resource for activity which supports and enhances the local area under the civic pride outcomes of making places cleaner, friendlier and safer.

“It is designed as an annual process to ensure the borough council can direct funds to activities which meet local needs and it will be based on a per ward member allocation of £500 and it is expected ward members will be consulted when groups develop their plans.”

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