Agenda, decisions and draft minutes

To receive any declaration of interests.

There were no declarations of interest received at this point in the meeting.

To receive the minutes of the previous meeting.

The minutes of the Executive meeting held on 21 January 2026 were submitted and approved as a correct record.

To receive any announcements from the Mayor.

None.

To receive questions from members of the public.

None.

To receive questions from elected Members.

None.

To consider reports of Overview and Scrutiny Board following the Call-In process or Council following the Budget setting process.

None.

To receive any reports from the Overview and Scrutiny Board or Scrutiny Panels.

None.

To receive any reports from member bodies which are the responsibility of the Executive.

None.

Report for decision.

ORDERED that Executive:

a.   Approves the specification of works outlined for the enhancement of the North, South, East and West Neighbourhood Hubs;

b.  Approves that any of the £5m resource allocation which is not used on the redevelopment of the Neighbourhood Hubs, be vired towards neighbourhood assets and open spaces; and,

c.   Delegates any construction contract, design, scope and budget adjustments to the Director of Regeneration, in consultation with the Director of Environment and Community Services – insofar as they are compliant with financial and contract procedure rules.

AGREED that Executive:

1. Notes the phased development and delivery of works to ensure that continuity of Community services was prioritised;
2. Approved the amendment to the above recommendation to read: ‘Delegates any construction contract, design, scope and budget adjustments to the Director responsible for Regeneration, in consultation with the Director responsible for Environment and Community Services, insofar as these are compliant with financial and contract procedure rules’; and,
3. Notes that work would be undertaken to address the terminology used for community hubs and neighbourhood hubs.

In accordance with Council Procedure Rules 4.8.25 the Chair proposed a motion without notice, which was seconded and agreed, to change the order of business. The motion proposed that Agenda Item 15 to be heard next.

It was agreed that the order of business for the remainder of the meeting be items 10,11,12,13,14,16.

The Executive Members for Development and Neighbourhoods submitted a joint report for Executive consideration, seeking approval for significant investment in Middlesbrough’s Neighbourhood Hubs.

The report outlined the planned enhancement of the North, South, East and West Neighbourhood Hubs, which form a key part of the Council’s Neighbourhood Working approach approved in April 2025. The Hubs are located in Hemlington (South), Newport (North), Berwick Hills (East) and Grove Hill (West) wards, each serving as a central base for community delivery within their areas. It was highlighted that £5 million of Transformation Programme capital funding had been allocated to support the upgrade of the hubs and selected community spaces, with the intention of improving access to services, strengthening community resilience and enabling a broader range of local activities.

Members were advised that the investment would allow more staff and partner organisations to be based within neighbourhoods, offering tailored support specific to local needs. The proposed works included building adaptations to ensure the hubs are accessible, fit‑for‑purpose, and able to accommodate multiple uses. The report also set out the proposed phasing of works to maintain service continuity and the governance arrangements for managing project design, scope, and budget adjustments.

Members noted that the hubs would play a key role in delivering Neighbourhood Working, which had been approved by the Executive in April 2025. Members were advised that the reference to approval in 2026 within the Executive Summary was an administrative error.

Members raised concerns regarding the condition and accessibility of the existing neighbourhood facilities and discussed that neighbourhood staff had been required to work in poor conditions following their relocation from office accommodation, and that residents were unable to access buildings they believed should be open. Members also highlighted inconsistencies across the hubs, with some offering public access and others not, and commented on the terminology used for “community hubs” and “neighbourhoods’ hubs” It was noted that further work would be undertaken to address the naming issue.

Following the recent management structure changes, it was identified that the titles of Directors referenced in the recommendations were incorrect, and it was suggested that the wording be amended to state that the Executive would delegate any construction contract, design, scope and budget adjustments to the Director responsible for Regeneration, in consultation with the Director responsible for Environment and Community Services, insofar as these were compliant with financial and contract procedure rules.

OPTIONS

A range of options and requirements had been considered with the occupant services and Neighbourhood Managers. The service had informed the scope and requirements of the specifications set out.

ORDERED that Executive:

a.   Approves the specification of works outlined for the enhancement of the North, South, East and  ...  view the full minutes text for item 25/101

Report for decision.

ORDERED that Executive:

1. Approves budget virements over £250,000 within the revenue budget (Appendix 1);
2. Approves budget virements over £250,000 within the Capital Programme (paragraph 4.47); and,
3. Approves the inclusion of new schemes and additions to existing schemes to the Capital Programme totalling £0.357m for 2025/26, which are all externally funded to either new or existing schemes (detailed in Appendix 5). Subject to approval this will increase the approved 2025/26 Capital Programme budget to £88.451m.

AGREED that Executive:

1. Notes the Council’s financial performance and forecast year-end financial outturns for revenue and capital budgets for the financial year 2025/26 as at Quarter Three, highlighting the budget pressures and the forecast year-end position if no further action is taken. At present, the revenue budget is forecast to be under pressure by £1.675m (1.1%) at year end after the proposed use of central contingences and other budgets; and,

2. Notes that Directors continue to implement recovery plans, mitigations and financial controls aimed at reducing their forecast budget pressures and acknowledges the ongoing requirement for Directors to continue refining and implementing these plans to achieve a balanced budget by the end of 2025/26. In support of this corporate revenue budget spending controls will continue to be applied during 2025/26.

The Executive Member for Finance submitted a report for Executive consideration presenting the Council’s forecasted financial position at Quarter Three 2025/26 and seeking approval for several required financial actions.

Members were informed that the projected year‑end revenue budget pressure stood at £7.719 million before mitigations, and that the proposed use of £6.044 million in central contingencies and other budgets would reduce this to a net pressure of £1.675 million (1.1%), representing a slight improvement from the Quarter Two position.

The report outlined continued budget pressures within key service areas, most significantly in Children’s Care, Adult Social Care, Environment and Community Services, and Strategic Commercial Properties, and noted that £7.675 million of required savings were forecast as undeliverable in 2025/26. Directors had therefore submitted financial recovery plans, supported by ongoing corporate spending controls, in an effort to stabilise the year‑end position.

In relation to capital activity, Members were advised that the report sought approval for a series of revenue and capital virements over £250,000 and the inclusion of £0.357 million of new and expanded externally funded schemes, increasing the revised Capital Programme for 2025/26 to £88.451 million. The projected capital outturn was reported as £64.173 million, reflecting £23.300 million of slippage to future years and £0.978 million of identified underspends.

The report also provided updates on the latest forecast for reserves, including expected usable unrestricted revenue reserves of £25.937 million at year‑end, the Dedicated Schools Grant position, which showed a forecast cumulative deficit of £31.213 million by 31 March 2026, and the Council’s borrowing, prudential indicators, and debt‑recovery performance.

Members were further informed of actions already implemented and those planned to address identified pressures, including strengthened financial controls, ongoing review of savings delivery, and continued monitoring of expenditure, reserves and cashflow.

Members noted that the graph on page 21 demonstrated that, despite the forecast overspend, the Council’s reserves were still expected to increase by year end compared with the position at the start of the financial year.

Members acknowledged areas of improvement and noted that, when viewed in the context of the wider Budget, several actions being taken to manage service demand were expected to contribute to reducing overspends over time.

Reference was made to the recent decision on school catering, which would result in additional costs, and Members emphasised the importance of ensuring such impacts were reflected and built into future budgets.

It was considered helpful to set out clearly why service demand levels were being reset and how this supported efforts to address budgetary pressures.

In relation to crematorium income, Members noted that if income targets could not realistically be achieved, it was appropriate to adjust the budget accordingly. Members also stressed that underspends within service areas should not be absorbed into future budgets, as services were expected to manage within their allocated resources rather than rely on historic overspends.

OPTIONS

The alternative would be to not approve the revenue budget virements over £250,000 and the changes to the Council’s capital programme, and to not  ...  view the full minutes text for item 25/102

Report for decision and submission to Council.

ORDERED the Executive to approve that the following are forwarded to

Council for approval:

1. Proposed service budget growth of £6.460m from 2026/27 in order to reinvest in some direct services to the community and provide reinvestment in the resilience of enabling services (detailed in Appendix 3)

2. Budget provision of £15.549m for 2026/27 rising to £35.963m in 2029/30 to address forecast service demand pressures and re-basing of budgets (including for reduced income levels and legislative requirements). This includes the decision by Executive not to increase school meals prices for parents who do not receive free school meals in order to support families, for which budget provision of £0.230m for 2026/27 rising to £0.371m in 2029/30 has been provided (paragraphs 4.59 to 4.61 and Appendix 1)

3. Budget provision of £0.499m p.a. from 2026/27 for Corporate Demand, and the continuation of the Member Led Ward Schemes budget of £0.235m p.a.  from 2026/27 (Table 7 in paragraph 4.62)

4. Budget provision of £2.458m p.a. from 2026/27 to remove savings from the MTFP which are now found to be unachievable in the manner originally intended (paragraph 4.65)
5. No increase in core (general) Council Tax for 2026/27, but an increase in Council Tax for 2026/27 of 2% relating to the Adult Social Care precept to fund increased costs of statutory duties in Adult Social Care (paragraph 4.30), resulting in a proposed Council Tax level (Band D) of £2,115.86 excluding parish, Fire, and Police precepts (detailed in Appendix 11)

6. The proposed General Fund revenue budget for 2026/27 with a net budget requirement of £200.675m (Appendix 5)

7. The Financial Reserves Policy for 2026/27 (Appendix 7) including the proposed contributions to reserves to strengthen the Council’s financial resilience and the setting up of a new Budget Smoothing Reserve from 2026/27

8. The proposed Fees & Charges Policy for 2026/27, and the schedule of fees and charges arising from the application of the approved policy for 2026/27 (Appendix 8)

9. The Capital Strategy Report 2026/27 and the proposed 2026/27 to 2029/30 Capital Programme totalling £183.741m which includes the addition of new Council funded schemes and additions to current schemes and extension of schemes deemed Business as Usual totalling £11.735m in 2026/27 and  rising to £56.633m by 2029/30, and the associated financing statement (Appendix 9)

10. The Flexible Use of Capital Receipts (FUoCR) Strategy for 2026/27 including transformation and redundancy expenditure as part of the Transformation Programme amounting to £5.789m which can be capitalised in 2026/27 (Appendix 10)

11. The Pay Policy Statement for 2026/27 which sets out the Council’s policies on remuneration of its staff in accordance with Section 38 of the Localism Act 2011 (Appendix 13)

AGREED the Executive:

1. Notes the statutory s25 report of the Council’s Section 151 Officer in respect of the robustness of the estimates within the budget and the adequacy of reserves (Appendix 6)

2. Notes that the Council’s S151 officer recommends that the Council increases the Council Tax each year by the maximum allowed by the Government due to the reasons outlined in paragraph 4.31. However, whilst not recommended, given the  ...  view the full decision text for item 25/103

Report for decision and submission to Council.

ORDERED that the Executive approve the proposed Council Tax Reduction Scheme for 2026/27, as set out in the report, to be forwarded to Council for formal approval.

The Executive Member of Finance submitted a report for Executive consideration which set out the proposed Council Tax Reduction (CTR) Scheme for 2026/27.

Members were advised that the Council had a statutory duty to design and locally fund a CTR scheme each year, with the final scheme required to be approved by full Council no later than 11 March.

The report outlined the minor legislative amendments to be incorporated into the scheme for 2026/27 and explained that increases to income bandings were proposed to ensure that levels of support for low‑income households were maintained.

Members noted how the Council had continued to develop its income‑banded CTR scheme, first introduced in 2022/23 to simplify administration, reduce recalculations, and improve collection rates. The scheme provided discounts of 90%, 72%, 36% and 23%, determined by net weekly income and household composition, and continued to support Care Leavers with up to 100% relief. The report explained that for 2024/25 and 2025/26, band ranges were adjusted to reflect annual inflation increases to prevent reductions in entitlement. For 2026/27, Members were informed that further increases to the income bands were required due to above‑inflation uplifts to Universal Credit scheduled from April 2026 to April 2029, ensuring households maintained broadly the same level of support. It was noted that the Council’s CTR scheme supported approximately 18,500 households, with expenditure of around £22.183 million, and that the proposed adjustments were expected to be largely cost‑neutral, with any minor changes in entitlement being incidental to overall scheme expenditure.

OPTIONS

1.    The Council could reduce the level of support offered to working age residents in receipt of CTR. However, the Council recognises the financial challenges placed on residents and is therefore proposing that the current level of support is maintained which incorporates the proposal to increase the income bandings in line with inflation.

2. The Council could increase the level of support provided by adjusting the income bands and / or the discount rate although this would be subject to a full consultation exercise, which has not taken place during the current financial year. It is therefore intended that the Council will again review the scheme in June / July 2026 in line with government changes in legislation and any proposed local alterations, with Executive approval sought should consultation be necessary.

ORDERED that the Executive approve the proposed Council Tax Reduction Scheme for 2026/27, as set out in the report, to be forwarded to Council for formal approval.

REASONS

The proposed scheme would assist low-income households and support the collection of council tax whilst remaining affordable for the Council to provide.

Council Tax Reduction (CTR) was introduced by Central Government in April 2013 as a replacement for the Council Tax Benefit scheme, which was administered by councils on behalf of the Department for Work and Pensions. As part of the introduction, the Government placed the duty to create a local scheme for working age claimants with Billing Authorities. 

Middlesbrough Council, as the Billing Authority, has a statutory  ...  view the full minutes text for item 25/104

Report for decision.

ORDERED that Executive:

a)    Approve the refreshed Exceptional Hardship Fund - Section 13A (1) (a) Policy, which includes an additional element for some Care Leavers as set out in 4.5 below; and,

b)    Approve that delegated authority be provided to the Chief Finance Officer to make minor modifications to the Policy in consultation with the Executive Member for Finance.

The Executive Member for Finance submitted a report for Executive consideration which sought approval for adoption of the refreshed Exceptional Hardship Fund - Section 13A (1) (a) Policy under the Local Government Finance Act (LGFA) 1992 (as amended).

The report explained the need to review the existing policy and outlined the introduction of an additional element to provide further support for certain Care Leavers. It was noted that a reciprocal regional agreement had been developed between the twelve North East local authorities regarding council tax liabilities for Care Leavers, and that Executive approval was required to adopt and extend the updated policy.

Members noted that the previous Exceptional Hardship Fund Policy had last been amended on 26 April 2022 and was due for review during the 2025/26 financial year. Directors of Resources had supported the development of a reciprocal regional arrangement to ensure that Care Leavers under 25 did not pay council tax, and a working group had been established to finalise an agreement between the twelve North East authorities. The Council’s Council Tax Reduction Scheme already provided a 100% reduction for Care Leavers under 25, meaning the impact of the new agreement would be minimal. However, as some Care Leavers may not qualify for CTR and could still face council tax liability, the updated policy proposed the introduction of a discretionary reduction in such cases. It was noted that any financial impact of awards would be minimal and met from existing resources, and that no other changes to the policy were proposed. Members were also informed that continued government funding through the temporary Household Support Fund had enabled support to taxpayers, reducing potential Section 13A demand, but the forthcoming transition to a Crisis Resilience Fund from April 2026 might increase applications under the policy depending on future funding flexibilities.

OPTIONS

By extending eligibility under the policy further or increasing the value of awards would likely come at a cost to the Council. There was no clear evidence that would suggest a further change is necessary which would justify further cost.

Not extending the policy to provide for the situations where the Council needs to cover the cost of Care Leaver council tax would be administratively more involved as this would require further manual intervention, additional cost and potentially prone to error.

ORDERED that Executive:

a)    Approve the refreshed Exceptional Hardship Fund - Section 13A (1) (a) Policy, which includes an additional element for some Care Leavers as set out in 4.5 below; and,

b)    Approve that delegated authority be provided to the Chief Finance Officer to make minor modifications to the Policy in consultation with the Executive Member for Finance.

REASONS

The proposed scheme confirmed, following review, the Council’s ongoing approach to requests for additional financial support reducing council tax liabilities and has been extended to provide additional support to Care Leavers in certain circumstances.

The Council was required to have a policy to set out a framework within which it would provide the additional support.

Report for decision and submission to Council.

ORDERED that Executive approve that the following are forwarded to Council for approval as set out below:

a)    The Prudential Indicators and Limits for 2026/27 to 2029/30 relating to capital expenditure and treasury management activity set out in tables 1 to 9 of Appendix 1;

b)    The Treasury Management Strategy for 2026/27, which includes the Annual Investment Strategy for that financial year;

c)    The Minimum Revenue Provision (MRP) Policy for the 2026/27 financial year; and,

d)    An Authorised Limit for External Debt of £354 million for the 2026/27 financial year.

The Mayor noted that the agenda title and report title were not consistent however this did not affect the content of the report.

The Executive Member for Finance submitted a report for consideration by the Executive, presenting the Prudential Indicators for 2026/27 to 2029/30 and the Treasury Management Strategy for 2026/27. The report outlined the statutory requirement for the Council to set prudential indicators and approve an annual Treasury Management Strategy, which governs the Council’s borrowing, investments, and overall capital financing framework.

It was noted that the Prudential Indicators demonstrated the scale of the Council’s borrowing requirement, with the Capital Financing Requirement forecast to rise from £312.383 million in 2025/26 to £333.755 million in 2026/27, increasing further to £358.733 million by 2029/30.

The report explained that the Council had total external debt of £269.360 million as at 31 December 2025, with a further £20 million of borrowing expected before the end of the financial year, resulting in an estimated year‑end total of £289.360 million. This created an under‑borrowed position of £23.023 million, financed through internal cash balances. Members were informed that capital financing costs were expected to total £14.151 million in 2026/27, representing 7.1% of the net revenue budget.

Members also noted the Council’s approach to managing investment and borrowing risks, confirming that £24.917 million of cash balances were invested as of 31 December 2025, and that long‑term PWLB borrowing formed 89% of external debt.

The report further detailed the requirement to set an authorised limit for external debt, which was £331 million for 2025/26, rising to £354 million for 2026/27.

The Strategy also described the Council’s Minimum Revenue Provision policy, the knowledge and skills framework supporting treasury activity, and the external advice and benchmarking arrangements used to ensure the robustness, affordability and sustainability of the Council’s financial planning.

OPTIONS

It was a statutory requirement for the Council to approve the annual Treasury Management Strategy and set of Prudential Indicators. This report is a key step in achieving that objective. As a result, there are no alternatives available.

ORDERED that Executive approve that the following are forwarded to Council for approval as set out below:

a)    The Prudential Indicators and Limits for 2026/27 to 2029/30 relating to capital expenditure and treasury management activity set out in tables 1 to 9 of Appendix 1;

b)    The Treasury Management Strategy for 2026/27, which includes the Annual Investment Strategy for that financial year;

c)    The Minimum Revenue Provision (MRP) Policy for the 2026/27 financial year; and,

d)    An Authorised Limit for External Debt of £354 million for the 2026/27 financial year.

REASONS

The recommendations ensured that the Council are compliant with the Prudential Code for Capital Finance in Local Authorities and with the Ministry for Housing, Communities and Local Government (MHCLG) investment guidance. They also ensured compliance with the CIPFA Treasury Management Code of Practice and the requirements of Part 1 of the Local Government Act 2003. In addition, the recommendations establish a clear financial governance framework within which officers  ...  view the full minutes text for item 25/106

None.

The decision(s) will come into force after five working days following the day the decision(s) was/ were published unless the decision(s) become subject to the call in procedures.