Agenda item

Report of the Assistant Director - Resources

The Assistant Director, Resources, submitted a report (previously circulated), requesting that consideration be given to the Medium Term Financial Plan (MTFP) for 2025/26 to 2028/29.

The submitted report stated that the MTFP had been agreed by Cabinet on 3 December 2024 as the basis for consultation, and Members were asked to consider the MTFP, in particular those services and finances within the remit of this Scrutiny Committee, and forward any views to a Special Meeting of the Economy and Resources Scrutiny Committee, to be held on 20 January 2025, for consideration.

It was reported that the Economy and Resources Scrutiny Committee would then agree a formal response to Cabinet on behalf of all the Scrutiny Committees, as part of the consultation process. A briefing was delivered to Members on 11 December 2024.

The Assistant Director, Resources informed Members that since the MTFP had been published for consultation, the Council had received notification of the draft financial settlement for 2025/26. The key headlines were outlined, with Members noting that whilst the estimated income was circa. 2m better than expected for 2025/26, there still remained a number of pressures and uncertainties.

Members raised concerns regarding their ability to agree the MTFP given the changes following the draft financial settlement; Members were informed that the MTFP would be updated prior to Cabinet on 4 February 2025.

Discussion ensued regarding the impact of National Insurance contribution increases on health service providers, noting that all services providers would be impacted by this increase as there was no specific funding for this going forward. Members were informed that the Council would be reviewing the sustainability of provisions; and following a suggestion by a Member for more in-house services, Members were informed that the Council regularly reviewed costs of in-house and external providers as part of the tender process. Members also noted the intentions of Housing Services to purchase properties for use as temporary accommodation.

Reference was made to the income generated by the proposed increase in car parking tariffs which would support a range of other services. Members suggested that this be publicised more widely to help mitigate negativity surrounding the increase in the tariffs. Members entered into a discussion regarding the savings generated by the back office, in particular staff vacancies.

Clarification was sought regarding the funding for concessionary fares and Tees Valley Combined Authority funding. A number of suggestions were also raised, including the potential for a review of council tax banding, request for additional funding from the Tees Valley Combined Authority for sustainable transport and increased residents permit parking charges and locations. Members were informed that a review of residential parking locations was due to be undertaken in the Spring.

RESOLVED –  (a) That this Scrutiny Committee support the MTFP 2025/26 based on the information available at this meeting.

(b) That the Chair of this meeting, in consultation with the Lead Scrutiny Officers supporting this Scrutiny Committee, be given authority to agree the Minutes of this Special Meeting of the Scrutiny Committee, in order to enable the Minutes to be considered at a Special Meeting of the Economy and Resources Scrutiny Committee, scheduled to be held on 20 January 2025.