Issue - meetings

Consideration was given to a report that provided an update on the on the financial position as at 30th September for the current year (2023/24) and presented outline plans for the 2024/25 Budget and the Medium Term Financial Plan (MTFP).

Members noted that despite significant efforts around cost mitigations, inflationary and demand pressures had continued and the projected position for 2023/24 was a projected overspend of around £6.9m. The financial position had been communicated to all managers and staff and everyone was being encouraged to challenge all spend to try and mitigate the impact. As outlined in previous reports, any overspend would need to be funded from reserves. Work was underway to assess reserves and this would be incorporated into the MTFP report in February.

The report also outlined the indicative MTFP for future years. It was noted however that, future years funding levels were assumed based on announcements made to date. This would only be confirmed upon receipt of the Provisional Local Government Finance Settlement which was expected week commencing 18th December. Many of the pressures around inflation, Adult’s Services, Children’s Services and pay awards experienced in the current year were continuing and this had been built into projections.

The local government finance settlement for 2023/24 included the referendum limit for 2024/25, setting Council tax at 3% and the Adult Social Care levy at 2%.  The MTFP was based on a 2.9% increase and no application of the Levy. The Budget Report in February would consider the council tax levels however given the overall position the Council would need to seriously consider increasing the rise to the referendum levels anticipated by Government.

The position for the Council, based on the assumptions in the report and an increase level of council tax still meant there would be a gap of £5m in 2024/25 and £8m by 2025/26. In simple terms, the Council needed to reduce the base budget position by £9m, so the Council must reduce spending. The planned programme of transformation was key to doing this, while also ensuring positive outcomes for residents.

Despite the budget challenges, ambition remained for Stockton-on-Tees and getting a better future for everyone who lives, works and plays in the Borough.  There was confidence that the Council could work with partners and communities to put in place new and innovative approaches which would not only save money but also reshape what was done for the better and in the best interests of residents. This will be done through Powering Our Future Programme which see the Council focus its transformation around the following five principles.

Communities Powering Our Future: We need to change the way we work with our communities so they use their knowledge, skills and strengths to help them deliver positive outcomes for themselves. Not only will this save money, it will mean that our residents are healthy, happy and feel like they belong.

We will empower communities and increase individual, family and community level activities, helping people and communities to be independent  ...  view the full minutes text for item 54