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 2019/20 to 2022/23, including setting a budget and Council Tax increase for 2019/20, and a 2019/20 to 2022/23 Capital Programme.

The submitted report stated that the Council had faced unprecedented financial challenges between the financial years 2010/11 to 2019/20, following the introduction of reductions in public sector spending. It was reported that, during the period to date, there had been an overall real terms decrease in government funding of £45.7m, which was anticipated to increase to £50.0m by 2022/23, and which had resulted in the Council agreeing reductions in planned expenditure of over £57m, leading to a reduction of 747 in the Council’s workforce.

The submitted report highlighted that, since the draft MTFP was published, there had been a number of changes which affected the financial position, including the receipt of the Local Government Finance Settlement (LGFS) on 13 December 2018, which had confirmed the reduction of £2.8m in the revenue support grant and the extra one-off funding for social care of £0.856m announced in the 2018 budget. The submitted report stated that there was also additional funding of £0.346m allocated to Darlington, which was the distribution of surplus levy funding, and also some smaller increases in Top up Grant and New Homes Bonus at £0.020m and £0.038m respectively.

It was reported that a Treasury Management initiative had seen two Lender Option Borrower Option loans repaid, which resulted in a saving of £1.5m over the lifetime of the MTFP. 

The submitted report outlined that the Council had undertaken a significant consultation exercise in 2016, following an in-depth and detailed review of all services, which had resulted in the agreement of a Core Offer budget and allowed for a small futures fund allocated to discretionary services. In addition, in February 2018, when agreeing the 2018/19 MTFP Members, following consultation, agreed to use unallocated balances of £4.1m to invest in five areas which hold great value to the community. The submitted report stated that the core offer remained challenging, with some significant pressures arising in children’s social care, however through innovative financial investments, economic growth successes, and the release of redundant earmarked reserves, it was anticipated that the Council could deliver the agreed balanced plan, extend the MTFP, increase balances, and allocate a further £0.600m to bolster the Future Fund Scheme.

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 Carson, Coultas, Crichlow, Crudass, Crumbie, Mrs. Culley, Curry, Donoghue, Galletley, Harker, Haszeldine, Heslop, Johnson, B. Jones, Kane, Knowles, Lister, Lyonette, Marshall, McEwan, Newall, M. Nicholson, Nutt, E. A. Richmond, S. Richmond, A. J. Scott, Mrs. H. Scott, Storr, C. Taylor, J. Taylor, Tostevin and Wallis (33)

Against the Motion – (0)

Abstentions – (0)

Motion Carried. 

NOTE: Councillor Lawton was not present at the meeting when the vote was taken.

RESOLVED - (a) That the Revenue MTFP, as detailed in Appendix 7 of the submitted report, be approved, including the following:

(i)            Council tax increase of 2.99% for 2019/20;

(ii)        Schedule of charges, as detailed in Appendix 3 of the submitted report.

(b) That a delegation for Cabinet to vary the Revenue Budget for 2019/20 by up to £0.5m without further Council approval, be approved.

(c) That the Capital Programme, as summarised in Appendix 9 of the submitted report, be approved.

(d) That a delegation for Cabinet to vary the Capital Budget for 2019/20 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.