Agenda item

The Executive Member for Finance will be in attendance to provide her update. The Executive Member will refer to the Quarter 1 Budget Outturn report which was approved by Executive on 3 September 2025. That report is attached to this agenda. 

The Chair welcomed the Executive Member for Finance to the meeting and invited her to deliver her presentation.

 

As part of her presentation the Executive Member for Finance made the following points:

 

·         An overview of the Finance portfolio included responsibility for of ensuring the Council was financially sustainable, delivered value for money and operated openly and fairly in these respects.

·         The Executive Member’s personal targets for the previous year had been to deliver within budget for 2024/25, balance the budget for 2025/26 without the need for further exceptional financial support and to introduce a new Member Enquiry system as well as creating a working group for Councillor communications.

·         All of the personal targets described had been achieved.

 

A Member queried if the identified underspend for 2024/25 would have been placed into reserves. It was clarified that the Council continued to contribute to its reserves. The cost of the Councillor Gateway system was queried, and it was clarified that the cost of the IT product was £145,000 but this did not include costs around support officers.

 

In terms of reserves, a chart was displayed for Members that demonstrated there was an upward trend in the replenishment of the Council’s reserves.

 

The Executive Member outlined her personal targets for 2025/26 which were:

 

·         To deliver within budget for 2025/26 and to improve the budget clinic process to incorporate Transformation.

·         Review the Councillor Gateway System and to improve communications channels with officers.

·         Use the Household Support fund to help pensioners impacted due to the removal of the Winter Fuel Payments and those on low incomes.

 

The Board was advised that at Quarter One there had been a projected overspend of £4.4 million but this was expected to be reduced when the Quarter Two information was released. Children’s Services continued to be the Council’s main overspending service, but there were also overspends in other areas. Members were advised that all services that had predicted overspends had been requested to submit recovery plans.

 

A Member commented that the Regeneration Department had a predicted overspend of 12% of its budget and this was concerning. It was clarified that the Regeneration Department’s overspend could be attributed to the relatively low size of its budget and high-income targets.

 

A Member queried that Children’s Services had consistently been overspent against its budget, and why it was forecasted as a lower spender. It was clarified that if additional budget was assigned to the service it would expand into it. Were additional funds be allocated to Children’s Services there would be reduced funding available for other front-line services. There was a need for Children’s Services to adopt a more corporate outlook.

 

In terms of reviewing the Councillor Gateway system and improving Member communication with officers, a survey had been carried out with Members and a project team had been established which included both Members and Officers. While there was not a significant response rate to the survey the issues contained in it would be examined.

 

A conversation took place during which Members commented the appointment of a Gateway Officer had been beneficial, especially with assisting with closing enquiries. It was also queried if improvements could be made to the address the system’s location facility. The Executive Member for Finance stated that if Members had questions about the system, they could be directed to either herself or to the Gateway Officer.

 

The Executive Member moved to her final objective, using the Household Support Fund to help pensioners impacted by the removal of the Winter Fuel payment. Members were advised that the scheme was agreed in May 2025 and included those in receipt of Council Tax Reduction or Attendance Allowance and were not eligible for the Winter Fuel Payment.

 

The Household Support Fund also contributed to the poverty agenda as it included an increase of £10 per child for those in receipt of free school meals, Council Tax Reduction, Universal Credit or Housing Benefit. There had also been an increase in the amount paid to couples and singles in receipt of benefits.

 

Members were also advised that, in terms of the Fair Funding Review, there was a revised settlement date beyond the 15 December and that a policy statement was due on 20 November. As such, the budget report due to be considered by Executive would be based on some assumptions supported by modelling. The way in which government settlement was awarded had changed as it now recognised Council need. Middlesbrough was part of the Special Interest Group of Municipal Authorities (SIGOMA) which lobbied government for secure sufficient, sustainable and fair funding for local areas which included transitioning to a three-year settlement rather than one year.

 

It was commented that there had been some delay to the Fair Funding Review due to ministerial changes. It was hoped that as the review was so advanced there would be no significant changes at this point. It was hoped that Middlesbrough would benefit from the changes the review brought.

 

Members were also advised about the Ward Priorities Fund, which had been approved in October 2025. Several initiatives had been implemented and supported by the fund which included the installation of knee rails and barriers to prevent anti-social behaviour, Christmas lights and events and the installation of CCTV cameras. Members were also advised of the Members Small Scheme Capital programme that was approved on 19 November 2025 and a list of the approved schemed were displayed for Members.

 

A Member commented that the Small Scheme programme was useful, but the application form could be made easier to complete. It was noted that the form would be considered going forward and that future bidding processes would be undertaken to align with the beginning of the new financial year.

 

There were no further questions from the Board and the Chair thanked the Executive Member for her presentation and asked that the information be noted.

 

NOTED.