Agenda item

The Select Committee received an update on the Council’s financial performance and position as of 30th September 2024 for the current year (2023/24) and an outline of plan for the 2024/25 Budget and Medium Term Financial Plan (MTFP).

The projected overspend was approximately £6.9million and this has been communicated to Council managers and staff. The report also highlighted that work was underway to assess reserves and this would be incorporated into the MTFP report in February 2024.

Key issues discussed were as follows:

•           A discussion was held on funding provided by the Council to Tees Active Limited for energy support and a difference between figures on Tees Active accounts and Council reports. Officers provided an explanation and confirmed that accurate figures were contained in the Council’s budget and end of year report for 2023/24 but they would investigate this issue and provide clarity on figures.

•           Members raised concerns about not receiving information and reports in a timely manner so they could be scrutinised accurately. Officers responded that the financial situation was moving at a fast pace and Members would be briefed on the updated financial situation in January. It was also confirmed that the Council’s financial position had not changed significantly since receipt of the Provisional Local Government Finance Settlement before Christmas 2023.

•           Members queried how much the annual maintenance cost for the waterfront development would be. Officers responded that the current estimate was £380,000 but work in this area was ongoing.

•           Members questioned if solar panels installed on the Ingleby Barwick leisure centre would generate income. Officers responded that income would be generated, and figures would be provided.

•           Members queried why the Council’s office accommodation project had been revised by £2.5million. Officers explained that original figures for this project had been determined several years ago and a report outlining the new position had been presented to Cabinet in July 2023. It was also confirmed that the sale of Municipal Buildings had not been included in current figures because the Stockton Town Centre blueprint consultation was ongoing.

•           Members questioned if a worst case scenario and best case scenario could be included in future financial reports. Officers responded that due to reduced termed settlements and uncertainty on a national level, it was currently difficult to forecast. It was also highlighted that, because of this uncertainty, other Councils had chosen to only set budgets for 1 or 2 years.

•           Members queried why revisions to programmes had not been presented to full Council for approval. Officers explained that updates to programmes within year only needed to be referred to Cabinet for approval for funding changes and additions.

•           Discussions were held on the release of information to Members as part of the upcoming budget setting. Officers assured Members that work was continuing and a report was due to be presented to Cabinet and Members briefing session. It was also commented that, through the scrutiny function, Members would be involved in some of the larger transformation reviews.

•           Members raised concerns about the procurement of a new household waste recycling centre. The Chair of the Place Select Committee reassured Members that this had been covered as part of the Scrutiny Review of Domestic Waste Collections, Kerbside Recycling and Green Waste and would be picked up in the subsequent action plan. 

Further information was requested in respect of:

•           The Council’s bid submission to the government’s Winter Pressure Fund.

AGREED

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

2)         That the revised capital programme be noted.

3)         That responses to the queries set out above be circulated to all Members of the Committee.