Agenda item

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

 

The report presented the recommended Revenue Budget of £126,353,562, Council Tax increase of 3.99% (paragraphs 86 to 106), and Capital Strategy Report for 2023/24 (paragraphs 162 to 172). 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 30 November 2022, this report also provided a refreshed Medium Term Financial Plan (MTFP) for the period 2023/24 to 2025/26 to reflect the 2023/24 Local Government Finance Settlement (paragraphs 107 to 155).

 

The Medium-Term Financial Plan update in the report was integrated with the £231m Investment Strategy for Middlesbrough for the period from 2022/23 to 2025/26, supported by £114m of the Council’s own resources. The updated Investment Strategy was shown in Appendix 7.

 

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

 

Executive was advised that Appendix 6 of the report had been amended since the papers were circulated on 6 February 2023.  

 

Executive was advised that some minor amendments would also be required to the report, mainly around Appendices 3 and 5, when information regarding the Local Government Financial Settlement and Police and Fire precepts were confirmed. However, it was clarified the amended Appendix 6, and any subsequent amendments, did not affect the decisions being requested and would be reflected in the version of the report submitted to full Council on 27 February 2023.

 

OPTIONS

 

There were no other options put forward as part of report.

 

ORDERED

 

That Executive:

 

1.     Endorses the proposed budget strategy for 2023/24 as set out in paragraphs 13 to 85;

2.     Endorses the proposed budget savings (Appendices 1 and 2), and other proposals for the 2023/24 budget;

3.     Having taken into account the matters set out in Section 32 of the Local Government Finance Act 1992 and the items set out within the report, that the Executive endorses the budget requirement for 2023/24 to be set at £126,353,562 as detailed in Appendix 3;

4.     Endorses the actual amount of Council Tax (Band D) for areas without parish precepts (excluding Fire and Police) be set at £1,881.86. This represents a total increase of 3.99%. This comprises of a 1.99% increase in general Council Tax, and an additional precept of 2% for Adult Social Care which has been continued by the Government to contribute towards the shortfall of funding for adult social care;

5.     Endorses the actual amount of Council Tax (Band D) for areas with parish precepts (excluding Fire and Police) be set at:-

 

·        Nunthorpe Parish                                         £1,891.57

·        Stainton and Thornton Parish                     £1,891.17

 

6.     Endorses the amounts of Council Tax for each category of dwelling be set in accordance with table 4 of Appendix 5 within the report;

7.     Notes the Flexible Use of Capital Receipts Strategy 2023/24 amounting to an estimated £3m in 2023/24, detailed in Appendix 6, and that subject to approval of the Strategy by Council on 27 February 2023, this will be implemented for 2023/24.

8.     Notes the refreshed Medium Term Financial Plan position for 2023/24 to 2025/26 set out in this report in paragraphs 107 to 155;

9.     Endorses the updated Investment Strategy for the period to 2025/26 as outlined in paragraphs 156 to 161 and detailed in Appendix 7 and;

10.  Endorses the Capital Strategy Report (Prudential indicators, Investment Strategy and Minimum Revenue Provision) 2023/24 as outlined in paragraphs 162 to 172 and detailed in Appendix 8, and endorses the Authorised Limit for external borrowing of £328m for the Council for 2023/24 as set out in paragraph 172; and

11.  Note the changes made in Appendix 6 of the report.

 

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 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 attempting to maximise its contribution to the Mayor’s priorities for Middlesbrough.