Decision details

To propose the Medium Term Financial Plan (MTFP) 2019/20 to Council for approval following consultation. The MTFP sets out the Council's priorities and resource allocations, Annual Capital Expenditure and proposals for the Capital Programme.

Pursuant to Minute C85(2)/Dec/18, the Leader introduced the report of the Chief Officers Executive (previously circulated), proposing a Medium Term Financial Plan (MTFP) for 2019/20 to 2022/23, including setting a budget and council tax increase for 2019/20 and a Capital Programme for 2019/20 to 2022/23, for Council approval on 21 February 2018.

The submitted report stated that the Council had faced unprecedented financial challenges between the financial years 2010/11 to 2019/20, following reductions in public sector spending, leading to an overall decrease in real terms in government funding of £45.7m, which was anticipated to increase to £50m by 2022/23. The reductions in funding resulted in the Council agreeing reductions to planned expenditure of £57m and a reduction of 747 in the Council’s workforce.

It was reported that since the draft MTFP had been proposed in December 2018 there had been a number of changes that affected the Council’s financial position, namely the receipt of the Local Government Finance Settlement, which confirmed the reduction in the revenue support grant of £2.8m; extra one off funding for social care of £0.856m that had been announced in the 2018 budget; additional funding of £0.346m that was allocated to Darlington following the distribution of surplus levy funding; and increases in Top up Grant and New Homes Bonus of £0.020m and £0.038m respectively.

The submitted report also stated that £1.5m had been saved over the MTFP life following the repayment of two Lender Option Borrower Option loans as part of a Treasury Management initiative; that a Core Offer budget was agreed following a significant consultation exercise undertaken in 2016 (Minute 11(h)/Jun/16 refers); delivering the Core Offer continued to be extremely challenging with significant pressures arising from Children’s social care; and that although further pressures had arisen, the Council could still deliver the agreed plan.

Discussion ensued on the risks to the Council associated with the MTFP; contingencies to mitigate those risks; Council Tax; and the Library Service.

RESOLVED – That it be recommended to the Special Meeting of Council scheduled to be held on 21 February 2019, that the Revenue Medium Term Financial Plan, as set out in Appendix 7 of the submitted report, and the proposed Capital Programme as summarised in Appendix 9 of the submitted report, be approved, including the following:-

(a)    a Council Tax increase of 2.99% for 2019/20; and

(b)    the Schedule of Charges, as set out in Appendix 3 of the submitted report.

REASONS – (a) The Council must set a budget for the next financial year.

(b)    To enable the Council to continue to plan services and finances over the medium term.

(c)    To ensure decisions can be made in a timely manner.