Communities in Gateshead have been urged not to oppose the opening of new children’s homes.

Council bosses have pleaded with residents not to stand against efforts to create new provision for the town’s looked-after children, as they try to cut multi-million pound care costs.

Gateshead Council is forecasting an overspend of £4 million on its children’s care budget this year, with the local authority desperate to reduce the number of youngsters having to be placed in expensive, out-of-area homes.

Labour councillor Catherine Donovan told colleagues last week that children in the council’s care needed to be “part of a community” in their hometown and should be welcomed by locals.

Plans to open new children’s homes can often face opposition from neighbours, as was seen under proposals for one in Eighton Banks earlier this year, over concerns about noise, potential crime or anti-social behaviour, and fears that it could reduce property values.

Coun Donovan, the council’s cabinet member for children and young people, told a cabinet meeting last week: “All too often when we say we are going to open a children’s home or use a building [to house children in care] we don’t necessarily have the community on side with us. I think it is a really positive story and one we should be proud of.

“We should be arguing very strongly that it is the right thing to do. I cannot understand sometimes the opposition in the communities to us building or opening children’s homes. These are children who need to be part of a community.

“In Gateshead I would like to think that we are welcoming of that and have an understanding of the difficult lives that often these young people have had. I welcome it very much that that is our plan for the future.”

As of October 31, there were 493 children in the care of Gateshead Council, with 35 of those placed in external residential care.

A report to councillors said the number of external placements has been cut by seven this year, while the number of placements through fostering agencies reduced by 16.

Gateshead Council leader Martin Gannon said that “phenomenal” progress was being made to stop public funds going to “expensive, American hedgefund-owned companies” who run care facilities.

He added: “Right across the country local authorities are cracking under the cost of children’s care provision and other providers want to make phenomenal sums of money out of that.”

A council spokesperson said: “Gateshead currently operates four children’s residential homes providing homes for 12 young people alongside a Short Breaks Service for Disabled Children. We are working closely with Ofsted to complete the registration of one home, while all other homes are rated either Good or Outstanding.

“To further strengthen local provision and reduce the need for external placements, we are developing an additional three-bed children’s home within the borough, which is on track to open in June 2026. In addition, we have plans to expand our residential estate for a further three children by the end of 2029.

“These developments reflect our ongoing commitment to providing high-quality, local care for children and young people, ensuring stability and support closer to home.”