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 2023/24 to 2026/27, including setting a budget and Council Tax increase for 2022/23, and also the approval of a 2023/24 to 2026/27 Capital Programme.

The submitted report stated the financial pressures on the Public Sector as a whole, and on the Council, had been significant over the previous couple of years in the aftermath of Covid, which was on the back of a decade of significant financial challenge following the economic downturn and the reductions in public sector spending.

The submitted report stated that, through good leadership, governance and financial management, coupled with value for money service delivery, the Council had risen to the challenge by continuing to provide vital core services to the residents of Darlington, and had invested the resources available to grow the local economy and deliver success for the benefit of all.

It was reported that the Council had received its Local Government Finance Settlement on 19 December 2022, and which confirmed funding allocations for the two years remaining of the spending review with additional grant funding for social care and changes to the Council Tax referendum limits, which had been increased to 3% for Council Tax and 2% for the Social Care Precept. It was stated that future years funding beyond this period had not been confirmed and the consequence of this was that the draft 2023/24 – 2026/27 MTFP had an eye to future years, however did not seek to presume what the future would look like.  It aimed to ensure that the Council can set a legal budget in 2023/24 and continue to provide our core offer level of services to the residents of Darlington.

It was reported that a healthy level of reserves had been maintained for medium term stability and this was now a crucial component of the budget strategy given the unprecedented pressures faced in the coming years. The reserves will be utilised to meet the 2023/24 funding gap and allow time for detailed work to be completed on future savings options.

The following amendment to the Motion was moved by Councillor Holroyd, and seconded by Councillor Snedker:

‘Strike out

(b) Approve a delegation for Cabinet to vary the Revenue Budget for 2023/24 by up to £0.5m without further Council approval.

And strike out 

(c) Approve a delegation for Cabinet to vary the Capital Budget for 2023/24 by up to £0.5m without further Council approval.’

A named vote was taken of those Members present at the meeting and there appeared:-

For the Amendment – Councillors Boddy, Holroyd and Snedker (3)

Against the Amendment – The Mayor, Councillors Ali, Bartch, Dr. Chou, Clarke, Crudass, Crumbie, Mrs. Culley, Donoghue, Dulston, Durham, Harker, C. L. B. Hughes, L. Hughes, Johnson, B. Jones, Mrs. D. Jones, Keir, Laing, Layton, Lee, Marshall, McCollum, McEwan, Mills, Newall, K. Nicholson, M. Nicholson, Renton, Mrs. H. Scott, Sowerby, Tait, Tostevin, Wallis and Willis (35)

The Amendment was Lost.

The following amendment to the Motion was moved by Councillor Snedker, and seconded by Councillor Holroyd:

‘Reallocate the projected savings from Waste Disposal of £0.118m in each year 23/24, 24/25, 25/26 and 26/27 to Street Scene services – to improve the quality of service to residents in cleaning pavements, sweeping streets and clearing drains.’

A named vote was taken of those Members present at the meeting and there appeared:-

For the Amendment – Councillors Boddy, Holroyd and Snedker (3)

Against the Amendment – The Mayor, Councillors Ali, Bartch, Dr. Chou, Clarke, Crudass, Crumbie, Mrs. Culley, Donoghue, Dulston, Durham, Harker, C. L. B. Hughes, L. Hughes, Johnson, B. Jones, Mrs. D. Jones, Keir, Laing, Layton, Lee, Marshall, McCollum, McEwan, Mills, Newall, K. Nicholson, M. Nicholson, Renton, Mrs. H. Scott, Sowerby, Tait, Tostevin, Wallis and Willis (35)

The Amendment was Lost.

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 – Councillors Bartch, Dr. Chou, Clarke, Crudass, Mrs. Culley, Donoghue, Dulston, Durham, Holroyd, Johnson, B. Jones, Mrs. D. Jones, Keir, Laing, Lee, Marshall, Mills, K. Nicholson, Renton, Mrs. H. Scott, Snedker, Sowerby, Tait, Tostevin and Willis (25)

Against the Motion – The Mayor; Councillors Ali, Boddy, Crumbie, Harker, C. L. B. Hughes, L. Hughes, Layton, McCollom, McEwan, Newall, M. Nicholson and Wallis (13)

Motion Carried.

RESOLVED - (a) That the Revenue MTFP, as set out in Appendix 6 and the Capital programme as set out in Appendix 7, be approved, including the following:

(i)                  A Council Tax increase of 2.99% plus a 2% Adult Social Care Precept to help fund social care for 2023/24.

(ii)                The Schedule of Charges as set out in Appendix 3.

(b) That a delegation for Cabinet to vary the Revenue Budget for 2023/24 by up to £0.5m without further Council approval be approved.

(c) That a delegation for Cabinet to vary the Capital Budget for 2023/24 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.

(d) To ensure investment in our assets is maintained.