Agenda item

Report of the Chief Officers Executive.

Pursuant to Minute C68(5)/Jan/20, the Leader introduced the report of the Chief Officers Executive (previously circulated) proposing a Medium Term Financial Plan (MTFP) for 2021/22 to 2024/25 (also previously circulated), including setting a budget and council tax increase for 2020/21, to Council for approval on 18 February 2021.

The submitted report stated that over the last decade, the Council had faced significant challenges following the economic downturn and reduction in public sector spending; to date the Council had been successful in responding to those challenges but that this was becoming increasingly difficult; there were still financial pressures to be faced, particularly in respect of a growing elderly population, pressure in the children’s social care sector and the economic impact of Covid-19; Darlington’s economy continued to be the Council’s top priority; and that the draft Local Government Finance Settlement (LGFS) had been received on 17 December 2020 which had confirmed a number of funding streams.

It was reported that the Council undertook a significant consultation exercise in 2016, following an in-depth and detailed review of all services which resulted in the agreement of a Core Offer budget which allowed for a small futures fund allocated to discretionary services; in subsequent MTFP’s the Council had agreed to use unallocated balances of £6.5m to invest in five areas which held great value to the community; the Core Offer remained challenging with significant pressures arising from social care and the impact of Covid-19;  through innovative financial investments and increased income from economic growth successes, the Council could still deliver the agreed plan whilst retaining usable balances of £3.738m; and that the Council’s financial position was robust with a four year balanced MTFP with funds available for investment which would be delegated to Cabinet.

Details of the projected expenditure and income, budget pressures and savings, schedule of fees and charges, assumptions used to prepare estimates, projected Revenue Outturn 2020/21, assessment of risk balances, were also appended to the submitted report.

The Deputy Leader made particular reference at the meeting to the creation of the Stronger Communities Fund (SCF) which would provide funding to all Members to utilise at their discretion to deliver the objectives of the Fund.

The Chair of the Economy and Resources Scrutiny Committee stated that feedback from each of the Council’s Scrutiny Committees on the MTFP had been considered at the meeting of the Economy and Resources Scrutiny Committee held on 19 January 2021; there was a majority support for the Council Tax increase of 1.9 per cent, Adult Social Care Precept of three percent and the fees and charges levels; proposed changes to the MTFP in relation to not increasing junior swim and providing funding for climate change, which had been taken on board and reflected in the current MTFP; and that he had received a letter from the Chair of the Children and Young People Scrutiny Committee in respect of the concerns relating to the recommendations from that Scrutiny Committee.

Particular references were made at the meeting to a number of additional items that had been included within the MTFP, which Scrutiny and Members, had not had the opportunity to be consulted upon; the funding for the Climate Change Working Group; and the decision not to increase the junior swim prices.

RESOLVED - That the Revenue Medium Term Financial Plan, as set out in Appendix 7 of the submitted report, be approved, and it be recommended to the special meeting of Council on the 18 February 2021, including the following:-

(a)     a Council Tax increase of 1.99 per cent plus a three per cent Adult Social Care precept to help fund social care for 2021/22 totalling 4.99 per cent;

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

(c)      the continuation of the Futures Fund into 2024/25, as set out in paragraph 62 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.