Agenda item

Would Members please bring their copy of the MTFP which has been previously circulated

Submitted – A report (previously circulated) of the Chief Officers Executive which had been considered by Cabinet at its meeting held on 7 January, 2020 in relation to the Medium Term Financial Plan (MTFP) 2020/21 to 2023/24, including setting a budget and council tax increase for 2020/21.

The submitted report outlined details of the core offer budget, which had been agreed following a significant consultation exercise in 2016 and allowed reduced expenditure and services to a risk based minimum level with a small investment fund (The Futures Fund) of £2.5 million per year. It was noted that in subsequent MTFP’s unallocated balances of £4.7m was invested in five areas, namely Community Safety, maintaining an attractive street scene, maintaining a vibrant town centre, developing an attractive visitor economy and neighbourhood renewal.

The submitted report highlighted areas of saving within the plan and areas of pressure; and Members noted the projected expenditure for 2020/21 of just under £90 million.

Reference was made to projected income, including core grant funding to Local Government, additional funding announced in the Spending Review and increase in the Council Tax and National Non-Domestic Rates (NNDR), all of which would provide an increase in income over the period of the MTFP. Members noted the projected income of £90 million for 2020/21.

The Assistant Director Resources highlighted that by 2023/24 the projected general fund balance was £6.075 million however this relied on building 430 houses per year, no significant overspending, assumptions of additional income in the spending review materialising, a Council Tax increase of 2.00% and an adult social care precept of 2.00% giving an overall increased to Council tax of 4.00%.

Reference was made to the Future Funds allocation, with £4.7 million allocated in 2018/19; to date £2.081 million had been committed to the futures fund themes with a balance of £1.019 million remaining; and Members noted that in order to stimulate growth and invest in our communities over the period of the plan, Cabinet had agreed that the Futures Fund themes be bolstered by £1.8 million.

Members raised concern in respect of the Public Health funding and proposals to realign Public Health budgets which could result in a loss of funding to the Tees Valley.

RESOLVED – That this Scrutiny Committee has no comment to make on the proposed schedule of fees and charges for those services within its remit and supports the Council Tax increase of 2.00 per cent plus the 2.00 per cent adult social care precept for the next financial year and Futures Fund investment of £1.8 million.