Agenda item

The Elected Mayor and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to present the recommended Revenue Budget of £116,492,035, Council Tax increase of 2.75% (paragraphs 71 to 89), and Capital Strategy Report for 2021/2022 (paragraphs 125 to 136). Attached to the report were a number of appendices, which were listed at the end of the report.

Following on from the previous report, presented to Council on 16 December 2020, the report also provided a refreshed Medium Term Financial Plan (MTFP) for the period 2021/22 to 2023/24 to reflect the 2021/22 Local Government Finance Settlement (paragraphs 23 to 34).

The Medium Term Financial Plan update in the report was integrated with the £149.1 million Investment Strategy for Middlesbrough for the period to 2023/24, supported by £83.7 million of the Council’s own resources. The updated Investment Strategy was shown in Appendix 5 of the submitted report.

The budget continued to support the Mayor’s commitment to invest in Middlesbrough and transform service delivery for residents. It was intended that through the strategy the Council could achieve the challenging financial targets faced in the Medium Term Financial Plan period whilst ensuring that there was a minimum impact on the level of service delivered to the public.

ORDERED

1.     That the following be endorsed:

·       The proposed budget strategy for 2021/22 as set out in paragraphs 35 to 70, and the proposed budget efficiency savings for 2021/22 (Appendix 1).

·       The budget requirement for 2021/22 to be set at £116,492,035 as detailed in Appendix 2.

·       Having taken into account the matters set out in Section 32 of the Local Government Act 1992 and the items set out within the report, the basic amount of Council Tax (Band D) for 2021/22 be £1,757.67 being a 1.99% increase in general Council Tax and an annual precept of 0.76% for Adult Social Care which had been continued by the Government to contribute towards the shortfall of funding for adult social care. In total that represented an increase of 2.75% in the basic amount of Council Tax for the whole of the Borough. 

·       The actual amount of Council Tax (Band D) for areas without parish precepts (excluding Fire and Police) be set at £1,757.11.

·       The actual amount of Council Tax (Band D) for areas with parish precepts (excluding Fire and Police) be set at :-

§  Nunthorpe Parish                                         £1,761.41

§  Stainton and Thornton Parish                     £1,766.42

·        The amounts of Council Tax for each category of dwelling be set in accordance with table 4 of Appendix 4 within the report.

·        The updated Investment Strategy for the period to 2023/24 as outlined in paragraphs 120 to 124 and detailed in Appendix 5.

·        The Capital Strategy Report (Prudential indicators, Investment Strategy and Minimum Revenue Provision) 2021/22 as outlined in paragraphs 125 to 136 and detailed in Appendix 6, and the Authorised Limit for external borrowing of £315 million for the Council for 2021/22 as set out in paragraph 135. 

2.     That the following be noted:

·        The refreshed Medium Term Financial Plan position for 21-24 set out in the report in paragraphs 90 to 119.

REASONS

To enable the Council to meet its statutory responsibility to set a balanced revenue budget for the financial year 2021/22 and to ensure that a proper framework was in place for the medium term financial management of the Council.