Newcastle lord mayoral candidate John Church pledges to scrap special business rate

The pledge, which will take a stunning result in the December election to become reality, was announced on Monday by lord mayoral candidate John Church, who released a statement criticising the council's financial performance under Labor.

The 2020/21 financial statements, which are due to be endorsed for public exhibition on Tuesday, reveal the council recorded a $32 million deficit in the year, a result it says is inflated by $9 million due to money set aside for an upcoming landfill remediation project.

Cr Church said regardless, the true deficit still showed the council was "not living within its means, spending more than it is earning".

He highlighted a 13 per cent increase in expenses compared to the year prior, including a 10 per cent rise in wages and 24 per cent jump in outsourcing costs.

"There has been an $11 million increase in the use of contractors and consultants. This equates to a whopping $56.2 million worth of outsourcing," he said.

Cr Church, who is running for a second term on council in ward one, said if his team secured the numbers on council the special business rate charged in the city centre, Hamilton, Mayfield, New Lambton and Wallsend would be dumped.

"If elected, the Newcastle Independents will freeze any rate increase in the next financial year and work to produce balanced budgets," he said. "My team and I will scrap the special business rate, which is an additional burden on small business."

City of Newcastle changed the way SBR funds were distributed in recent years with the lord mayor now sitting on a committee that determines how some of the money is distributed. The SBR funds are used for the promotion, beautification and development of the business precincts.

Cr Church also vowed to improve financial transparency, committing to "open and transparent reporting of financial results, including project by project detail on budgets and expenditure".

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