Agenda item

Report of the Chief Officers Executive

The Chief Officers Executive submitted a report (previously circulated) to seek approval for a Medium Term Financial Plan (MTFP) for 2024/25 to 2027/28, including setting a budget and Council Tax increase for 2024/25, and also the approval of a 2024/25 to 2027/28 Capital Programme.

The submitted report stated the Council faced unparalleled financial challenges which stemmed from reductions in public spending between 2010 and 2019 where the Council’s budget was reduced by £46m in real terms, a 36% reduction in budget.  This financial position has been further compounded in the aftermath of covid and the current economic climate, the cost of living is increasing, and income deprivation and poverty rising.

The submitted report stated that the Council had previously met the challenges faced head on through value for money service delivery, shared services, economic growth, and strong financial management and had utilised built up reserves to continue to provide vital services for the residents of Darlington, however it was noted that the additional demands and inflationary increases were putting an unprecedented pressure on affordability and that the Council’s reserves would be significantly reduced by the end of 2025/26. It was stated that unless additional Government funding was forthcoming the Council would need to undertake a fundamental review over the course of 2024 to decide what and how services will be delivered in the coming years.

It was reported that the Council had received its Local Government Finance Settlement on 5 February 2024, and which confirmed funding allocations for one year only and the Council Tax referendum limits of 3% for Council Tax and 2% for the Adult Social Care Precept. It was stated that as part of the settlement reference was made to the development and sharing of productivity plans which would require local authorities to set out how they intended to improve service performance and reduce wasteful expenditure.

The submitted report stated that future years funding beyond this period had not been confirmed and that the consequence of this was that the 2024/25 – 2027/28 MTFP had an eye to future years but did not seek to presume what the future would look like, and aimed to ensure that the Council could set a legal budget in 2024/25 and continue to provide our core offer level of services to the residents of Darlington.

In accordance with the requirements of the Budget and Policy Framework Rules a vote on the recommendation was taken of those Members present at the meeting and there appeared:-

For the Motion – The Mayor; Councillors Ali, Anderson, Baker, Beckett, Coe, Crumbie, Dillon, Garner, Harker, Haszeldine, Holroyd, Johnson, Kane, Lawley, Layton, Mahmud, Mammolotti, McCollom, McEwan, McGill, Porter, Ray, Dr. Riley, Roche, Snedker, Storr, Toms and Wallis (29)

Against the Motion – Councillors Crudass, Mrs. Culley, Donoghue, Dulston, Durham, Keir, Marshall, K. Nicholson, Pease, Renton, Tostevin and Walters (12)

Abstentions – None (0) 

Motion Carried. 

RESOLVED - That

(a)       The responses and comments received to the consultation be noted.

(b)       That the Revenue MTFP as set out in Appendix 6 and the Capital Programme as set out in Appendix 7, be approved, including the following:

                               (i)           A Council Tax increase of 2.99% plus a 2% Adult Social Care Precept to help fund social care for 2024/25.

                              (ii)          The Schedule of Charges as set out in Appendix 3.

                            (iii)           Funding for Children’s Services to address the dependence on expensive external provision and improve placement sufficiency for children and young people in Darlington as noted in the report and detailed in Appendix 8.

(c)       That a delegation for Cabinet to vary the Revenue Budget for 2024/25 by up to £0.5m without further Council approval, be approved.

(d)       That a delegation for Cabinet to vary the Capital Budget for 2024/25 by up to £0.5m without further Council approval, be approved.

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.

(d)       To reduce the pressures on the MTFP in the medium term.

(e)       To ensure investment in our assets is maintained?????.