Agenda item

Report of the Chief Officers Executive.

The Leader introduced the report of the Chief Officers Executive (previously circulated) requesting that consideration be given to the Medium Term Financial Plan (MTFP) for 2024/25 to 2027/28 (also previously circulated) for consultation, including setting a budget and council tax increase for 2024/25.

The submitted report stated that the Council was facing unparalleled financial challenges stemming from reductions in public spending; the aftermath of Covid; the current economic climate; increased cost of living; income deprivation and rising poverty; increased demand for children’s social care; high inflation; and rising interest rates.  It was reported that unless further government funding was forthcoming the Council would need to undertake a fundamental review of its services over the course of 2024 to decide what and how services would be delivered in the coming years.

Reference was made to the fact that the Local Government Finance Settlement was not anticipated until late December, the consequence of which was that the draft 2024/25 Budget and MTFP had an eye to future years but did not seek to presume what the future would look like.

It was reported that all budgets had been reviewed and challenged; savings of £4.019m had been achieved; and that reserves would be utilised to meet the 2024/25 funding gap to allow for detailed work to be completed on savings options during 2024, should no government funding be forthcoming.

Details of the projected expenditure and income, budget pressures and savings, schedule of fees and charges, assumptions used to prepare estimates, projected Revenue Outturn 2023/24 and proposed Capital Programme, were also appended to the submitted report.

Particular references were made at the meeting to the Council Tax base, which was based on 1991 figures; investment of money; the Local Government Finance Settlement which was not likely to be received until late December 2023 and would be a one-year settlement; and funding of green spaces.  The Leader of the Council responded thereon.

RESOLVED - That the Revenue Medium Term Financial Plan (MTFP) and the Capital Programme, as set out in Appendices 6 and 7 respectively to the submitted report, be approved for consultation, including:-

(a) a Council tax increase of 2.99 per cent plus a two per cent Adult Social Care Precept to fund social care for 2024/25;

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

(c)  funding for Children’s Services to address the dependence on expensive external provision and improve placement sufficiency for children and young people in Darlington, as detailed in paragraphs 40 to 45 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.

(d) To reduce the pressures on the MTFT in the medium term.

(e)  To ensure investment in the Council’s assets is maintained.