Agenda item

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

The report provided an update of the Council’s Medium Term Financial Plan (MTFP) for the period to 2025/26, and the current estimated budget gap for 2023/24. It also set out proposed budget savings and other proposals, and proposed Council Tax increase for 2023/24. The report also noted that, following Council on 30 November 2022, the proposals would be, where required, subject to public consultation.

The report identified that Council approved a Strategic Plan for the period 2021-24 on 24 February 2021, setting out nine strategic priorities for this period in light of Covid-19 and other external factors, following consultation with local communities.

On 30 March 2022, Council was advised that an annual refresh for the Strategic Plan 2021-24 would not be brought forward and as such the current plan would remain in place for the coming financial year.

The “Refreshing the Strategic Plan work plan for the 2022-24 period” report to Executive on 5 April 2022 approved revisions to the Strategic Plan work plan for the 2022-2024 period to demonstrate progress towards and achievement of Council approved Strategic Plan outcomes.

The report also noted that the Council maintained a Medium Term Financial Plan (MTFP) that set out the financial envelope that was necessary to achieve those aims 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; and

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

OPTIONS

No other options were considered as part of the report.

ORDERED

That Executive:

1.     Note the updated Medium Term Financial Plan position for 2023/24 to 2025/26, and the potential budget gap of £10m to £20m in 2023/24, with £15m being the mid-case assessment

2.     Endorse the following measures to contribute towards the potential budget gap in 2023/24, and noted the report would be presented to Full Council on 30 November, with consultation to commence, where required, on 1 December 2022 and ending on 23 January 2023:

·        the proposed budget savings and other proposals for the 2023/24 budget. These total £14.2m in the full year, of which £5.4m are deemed to potentially affect service delivery levels and will be subject to public consultation (as detailed in Appendix 2)

·        the proposed total Council Tax increase of 2.99% for 2023/24 (comprising of a 1.99% increase in general Council Tax and a 1% Adult Social Care Precept), pending any future Government announcements regarding referendum limits

REASONS

The Council had a legal obligation in relation to setting a balanced budget and to meet the challenging financial targets faced in the MTFP. The setting of the budget was part of the policy framework and therefore required Full Council approval.

To enable the Council to meet its statutory responsibility to set a balanced revenue budget in 2023/24 and ensure that a proper framework was in place for the medium term financial management of the Council. This would enable the Council to take a systematic, coherent, and controlled approach to addressing ongoing financial challenges over the medium-term, while attempting to maximise its contribution to the Mayor’s priorities for Middlesbrough.