Decision details

1.

Title of Item/Report

MTFP Update (Quarter 1 2025/26)

2.

Record of the Decision

Consideration was given to a report that summarised the Council’s financial performance and position at the end of the first quarter of the 2025/26 financial year. The Powering Our Futures programme, and in particular the transformation mission had identified savings of £5.8m by 2026/27 to date. The updated savings target was £1.35m in 2025/26 and £2.256m in 2026/27. The transformation programme, alongside the wider Powering our Futures Programme, would continue to look to address the budget gap, alongside ensuring improvements to services to local residents.

The financial position for the Council for the first quarter of the financial year (to 30th June 2025) highlighted a projected overspend of £1.684m against the budget. Growing demand for Council services and the increased cost of delivery was putting pressure on several budget headings. Work was underway to look at ways to mitigate this projected overspend and the position would continue to be closely monitored and managed throughout the remainder of the financial year.

The financial challenges facing Stockton reflected a wider national picture, with councils across the country experiencing significant and well-documented pressures. Stockton had managed these pressures responsibly, using earmarked reserves over recent years to support the Medium Term Financial Plan and maintain stability during a period of exceptional strain. Looking ahead, reliance on reserves alone was not sustainable. Work was under way on the 2026/27 budget and the updated MTFP, ensuring that planning was proactive and focused on maintaining financial resilience. Cabinet would continue to receive regular updates on progress and the measures being developed. 

The report also presented an update on the Capital Programme.

RESOLVED that:-

1. The update to the Medium Term Financial Plan and the current level of General Fund balances be noted.

2. The revised Capital Programme at Appendix A be noted.

3.

Reasons for the Decision

To update Members on the Council’s financial performance and the Medium Term Financial Plan.

4.

Alternative Options Considered and Rejected

None

5.

Declared (Cabinet Member) Conflicts of Interest

None

6.

Details of any Dispensations

None

7.

Date and Time by which Call In must be executed

N/A