Agenda item

ORDERED that Executive:

 

1.     APPROVES the governance arrangements for the £4.367m Middlesbrough Priorities Fund

2.     APPROVES the proposed allocation of the Middlesbrough Priorities Fund between an allocation for elected Ward Councillors (£0.235m) with the remaining amount for initiatives proposed by the Mayor (£4.132m)

3.     APPROVES the following initial list of initiatives proposed by the Mayor totalling £0.680m with details being provided in paragraphs 4.16 to 4.27 of the report, namely Childhood Enrichment Team (£0.250m); Youth Group seed funding (£0.100m); Shop fronts improvements scheme (£0.180m) and Grass verges replacement (£0.150m).

4.     APPROVES the process for identification and approval of future initiatives proposed by the Mayor, including the requirement for the Executive to approve budget allocations for future initiatives from the Middlesbrough Priorities Fund.

The Mayor and Executive Member for Finance submitted a report for Executive’s consideration.

 

The purpose of the report was to propose the governance arrangements for the use of the £4.367m Middlesbrough Priorities Fund. The fund was created as part of the Budget for 2025/26 which was approved by Full Council on 19 February 2025 in the 2025/26 Revenue Budget, Medium Term Financial Plan, and Council Tax setting report.

 

The report set out how the Council proposed to allocate the Middlesbrough Priorities Fund, and in paragraphs 4.16 to 4.27, set out the initial list of initiatives proposed by the Mayor and the process for identification and approval of future initiatives.

 

The Final Local Government Finance Settlement for 2025/26 published by the Ministry of Housing, Communities and Local Government (MHCLG) on 3 February 2025, announced significant one-off funding for Middlesbrough Council in 2025/26.

 

In response to the significant level of single year funding, a Middlesbrough Priorities Fund of £4.367m for 2025/26 only was established and approved by Full Council on 19 February 2025 as part of the 2025/26 Revenue Budget, Medium Term Financial Plan, and Council Tax setting report.

 

The intention of the Middlesbrough Priorities Fund was to deliver high impact, one-off projects for the benefit of the communities in Middlesbrough. The temporary nature of this funding meant the Council was unable to build it into the ongoing revenue budget. However, elements of it may be announced in the future as being recurrent, in which case those elements will be built into ongoing budgets.

 

The report outlined the governance arrangements for the Middlesbrough Priorities Fund, and how the Fund would be allocated and how relevant initiatives would be approved.

 

It was proposed that the Middlesbrough Priorities Fund was split between two elements namely an amount allocated for elected Ward Councillors to bid for, and the remainder for initiatives proposed by the Mayor.

 

To make sure the Council addressed specific issues at a ward level, a portion of the Middlesbrough Priorities Fund would be made available for elected Ward Councillors to submit proposed initiatives, and this would be allocated at a rate of £5,000 per Ward Councillor for projects within their wards. To secure the funding, all Ward Councillors in each Ward must agree the use of the funding within the Ward. This would mean that an amount of £0.235m would be allocated for this with the remaining £4.132m being allocated for initiatives proposed by the Mayor. It was noted this would be in addition to the current Members Small Scheme within the Council’s approved Capital Programme and would not replace it.

 

All funding from the Middlesbrough Priorities Fund needed to be in line with set criteria identified in paragraphs 4.8 to 4.11 of the report.

 

Projects funded from the Middlesbrough Priorities Fund had to be one-off revenue-funded activities with no financial recurrence and which aligned with one or more of the cited principles which contributed towards delivery of the Council Plan priorities and aims.

 

The principles against which proposals would be assessed (in addition to impacting positively on the Council Plan) were:

 

· Invest to Save. 

· Extension of existing work / activity, to release additional benefits.

· Pilots and / or proof of concept activity which will involve a small-scale preliminary project to validate the feasibility before potential full-scale implementation.

· Corporate Peer Review recommendations.

 

The amount allocated for the Mayor’s initiatives would also need to demonstrate the principles addressed and identify the Council Plan priority and aim addressed.

 

Full documentation would need to be completed for all expenditure from the Fund to ensure a full audit trail was maintained and that all expenditure was in line with the criteria outlined above.

 

Work had already been undertaken to identify projects for the Mayor’s initiatives, having an allocation of £4.132m. A total of £0.680m of one-off revenue funded activities with no financial recurrence had been initially identified which aligned with one or more of the following principles, and which contributed towards delivery of the Council Plan priorities and aims. Details of the initial initiatives proposed were provided in the paragraphs 4.16 to 4.27 of the report below and it was requested that Executive approve these initial initiatives for implementation.

 

The Deputy Mayor expressed her thanks that the child enrichment team would be created as part of the priorities fund. It was also commented that all Member briefings should be established to both update, and distinguish, between the Priorities Fund and the Members Small Scheme Allocation.

 

OPTIONS

 

The absence of a governance and application process for the use of the Middlesbrough Priorities Fund could mean that the Fund was not utilised in accordance with that set out in the 2025/26 Budget approved by Council on 19 February 2025. There would also be a risk that the allocated funding was not used in accordance with Best Value considerations.

 

ORDERED that Executive:

 

1.    APPROVES the governance arrangements for the £4.367m Middlesbrough Priorities Fund

2.    APPROVES the proposed allocation of the Middlesbrough Priorities Fund between an allocation for elected Ward Councillors (£0.235m) with the remaining amount for initiatives proposed by the Mayor (£4.132m)

3.    APPROVES the following initial list of initiatives proposed by the Mayor totalling £0.680m with details being provided in paragraphs 4.16 to 4.27 of the report, namely Childhood Enrichment Team (£0.250m); Youth Group seed funding (£0.100m); Shop fronts improvements scheme (£0.180m) and Grass verges replacement (£0.150m).

4.    APPROVES the process for identification and approval of future initiatives proposed by the Mayor, including the requirement for the Executive to approve budget allocations for future initiatives from the Middlesbrough Priorities Fund.

 

REASONS

 

The decision would enable the effective use of the approved Middlesbrough Priorities Fund and ensure Best Value was obtained.