Agenda item

Report of the Chief Officers Executive.

Pursuant to Minute C80/Dec/24, the Leader introduced the report of the Chief Officers Executive (previously circulated) proposing a Medium Term Financial Plan (MTFP) for 2025/26 to 2028/29 (also previously circulated) including setting a budget and council tax increase for 2025/26, to Council at its meeting scheduled for Thursday 20 February 2025, for approval.

The submitted report stated that the Council was facing unparalleled financial challenges stemming from reductions in public spending between 2010 and 2019 where the Council’s budget was reduced by £46m in real terms; the aftermath of Covid; the unstable economic climate; increased cost of living; high inflation; income deprivation and rising poverty; and increased demand for services in particular adult and children’s social care and homeless, with the numbers of people in temporary accommodation rising significantly over the last couple of years.

It was reported that, in order to protect services as far as possible, all budgets had been reviewed and challenged, with savings of £3.651m being achieved in 2025/26; the Council could deliver a 2025/26 budget which would allow net revenue investment in Darlington and its residents of £137m and capital investment of £97m; a balanced position could be delivered in 2027/28 utilising reserves; there would be a budget deficit of £5.2m in 2028/29, if no additional funding was forthcoming; and that the Government had committed to a fundamental reform of the local government funding system.

The detailed revenue estimates 2024/25; budget pressures and savings; fees and charges proposals 2025/26; assumptions used to prepare estimates; projected Revenue Outturn 2024/25; Capital MTFP 2025/26 to 2028/29; and the minutes from the meeting of the Economy and Resources Scrutiny held on 20 January 2025, were all appended to the submitted report.

Particular reference was made at the meeting to how the savings had been achieved; the financial challenges and sustainability gap facing the Council; how the Council was helping its residents with the cost of living; and the removal of the Stronger Community Fund.  The Leder, Cabinet Member with the Children and Young People Portfolio, Cabinet Member with the Health and Housing Portfolio and the Cabinet Member with the Resources Portfolio responded thereon.

RESOLVED – (a)  That the responses and comments received to the consultation, as detailed in the submitted report, be noted.

(b)  That it be recommended to the special meeting of Council scheduled to be held on Thursday 20 February 2025, that the Revenue Medium Term Financial Plan (MTFP) and the Capital Programme, as set out in Appendices 6 and 7 respectively of the submitted report, be approved, including:-

(i)          a Council Tax increase of 2.99 per cent plus a two per cent Adult Social Care Precept to fund social care for 2025/26;  

(ii)         the Schedule of Charges, as set out in Appendix 3, of the submitted report; and

(iii)        the efficiency savings, transformation and services reviewed, as proposed in 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.

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

(e)  To ensure investment in the Council’s assets is maintained.