Minutes:
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.
Supporting documents: