Agenda item

The Mayor and Lead Member for Children's Social Care, Adult Social Care and Public Health and the Director of Finance submitted a report for the Executive’s consideration. The purpose of the report was to provide an update of the Council’s Medium Term Financial Plan (MTFP) for the period to 2024/25, reflecting and supporting delivery of the Strategic Plan. The report set out the proposed Council Tax increase for 2022/23, and noted that following Council on 24 November 2021 the proposals would be, where required, subject to public consultation.

The Council maintained a Medium Term Financial Plan (MTFP) that set out the financial envelope that was necessary to achieve strategic priorities and the savings necessary for living within those financial plans (budget savings). The MTFP:

·     accurately analysed the current financial climate and the medium-term horizon, including the range of spending pressures facing the Council;

·     addressed the budget savings requirements for the MTFP period;

·     focused investment on growing the town’s economic base to improve local prosperity, and secured a robust and independent income stream to fund the Council’s services.

The table below paragraph 9 of the submitted report summarised the updated position of the anticipated changes to the Council’s financial position in the period to 2024/25 since the budget report to Council in February 2021, with further details being included in the paragraphs 10 to 12.

The budget report to Council in February 2021 detailed the key assumptions made in the MTFP, and the submitted report showed the major changes since February 2021, with paragraphs 14 to 75 providing further details.

The submitted report also included information on:

·        adequacy and use of financial reserves (see paragraphs 76 to 82); and

·        budget saving requirements and proposals, including budget savings already assumed in the current MTFP (see paragraph 83) and proposed additional budget savings (see paragraphs 84 to 86).

The Council’s Investment Strategy was updated each quarter via the quarterly budget monitoring reports, and also a full revision of the Investment Strategy for the MTFP period, including 2024/25, would be included in the budget report to Council in February 2022.

OPTIONS

The Council had no option but to monitor its financial position, addressing any potential financial pressures and any budget savings required, to ensure the Council’s financial position was balanced. The updated Medium Term Financial Plan for 2021-25 planned to provide the means to achieve that in a proactive and systematic manner, while continuing to reshape the Council to lead the delivery of the priorities for Middlesbrough.

ORDERED

1.      That the updated Medium Term Financial Plan position for 2021-25 be noted.

2.      That the proposed budget for 2022/23, and the proposed total Council Tax increase of 2.99% for 2022/23 (comprising of a 1.99% increase in general  Council Tax and a 1% Adult Social Care Precept) be endorsed. 

3.      That the report be presented to Council on 24 November 2021, allowing consultation on the budget and the proposed Council Tax increase to commence, with any required changes arising from the discussion of the report at the Executive delegated to the Executive Member for Finance and Governance, as advised by the Director of Finance.

REASON

To enable the Council to meet its statutory responsibility to set a balanced revenue budget and to ensure that a proper framework was in place for the medium term financial management of the Council, which would enable the Council to take a systematic, coherent and controlled approach to addressing ongoing financial challenges over the medium-term, while maximising its contribution to the Mayor’s priorities for Middlesbrough.