Agenda and draft minutes

The Worshipful the Mayor welcomed everyone and outlined the arrangements for the meeting.

The Head of Legal Services advised the meeting that all Councillors present had been granted a dispensation to take part and vote on matters relating to the setting of the council tax, budget and precepts, setting the local council tax reduction scheme, members allowances, payments and indemnities.

No other declarations were made.

Council considered a report which set out the final proposals for the Council’s 2026/27 Budget and Council Tax, together with the Medium-Term Financial Plan (MTFP) position to 2029. The report also provided an update on the Council’s financial performance for 2025/26. It outlined the proposed budget for 2026/27 and the indicative MTFP for future years, reflecting the provisional finance settlement announced on 17 December 2025 and the final local government finance settlement issued on 9 February 2026.

The MTFP provided an indicative financial envelope to support sustainable decision?making and prioritisation over the planning period, and that it would continue to be reviewed annually to reflect updated demand, inflation, funding assumptions and delivery progress. Like many councils nationally, the Council had continued to experience increasing demand for services and significant cost pressures, leading to overspending against the approved budget. The greatest areas of pressure were Adult Social Care, Children’s Social Care and Home to School Transport. As a consequence, reserves had been required to cushion the impact. The report therefore included a Reserves Policy setting out how reserves would be replenished to ensure the Council maintained financial resilience against future unforeseen pressures.

The report highlighted that demand and cost pressures were expected to continue across the MTFP period, outpacing the increase in funding available. This had resulted in a projected budget gap of £6.7m in 2026/27, rising to £13.8m in 2027/28 and £18.4m in 2028/29. In response, the Council had identified a renewed Phase 2 of the Powering Our Future programme, incorporating outcome?based reviews, council?wide initiatives and efficiency programmes. This phase built on the progress already achieved through Phase 1, which had identified £9.9m of savings by 2028/29. The Council also noted that residents’ feedback from the Let’s Talk Money consultation had informed areas identified for review.

The scale and pace of required savings—particularly in the later years of the plan—were acknowledged as representing a significant delivery challenge. While the Council had a strong track record in delivering change through Phase 1 of Powering Our Future, Phase 2 would require early validation of assumptions, strengthened governance through the established gateway process, and regular reporting to Members. The report emphasised that, given the current low level of reserves, timely corrective action would be needed where delivery risks emerged, including revising sequencing, scope or mitigations as necessary.

It was moved by Councillor Paul Rowling, seconded by Councillor Lisa Evans and 

RESOLVED

1)    That in accordance with the Local Government Act 2003, Members note that the Section 151 Officer confirms that the following recommendations:

a)    represent a robust budget which has been prepared in line with best practice;

b)    provide adequate working balances;

c)    set out that reserves and provisions are adequate for their purpose.

General Fund Budget

2)    Approve a 2026/27 Council Tax requirement for Stockton-on-Tees Borough Council of £134,206,810

3)    Approve a 2026/27 Council Tax requirement for Stockton-on-Tees Borough Council inclusive of Parish Precepts £135,318,668.

4)    Approve the 2026/27 budget and indicative 2027/29 MTFP as outlined in paragraphs 54-129,  ...  view the full minutes text for item COU/81/25