Agenda item

STOCKTON-ON-TEES BOROUGH COUNCIL

CABINET DECISION

PROFORMA

Cabinet Meeting ........................................................................ 12 December 2024

1.         Title of Item/Report

            Financial Update & MTFP

2.         Record of the Decision

Consideration was given to a report that provided an update on the financial position as at 30th September for the current year (2024/25) and presented outline plans for the 2025/26 Budget and the Medium Term Financial Plan (MTFP).

Members were aware of the financial challenges facing Councils across the country, and the particular challenges faced locally within Stockton-on-Tees. Significant work was underway looking to address the financial pressures faced by the Council through the Powering our Futures Programme alongside additional mitigating actions. Members were aware of the progress made so far on the transformation reviews, with the report to Cabinet in November 2024 outlining the first phase of savings from reviews.

The cost pressures and demand for Council services as noted in the report to Cabinet in September, continued to grow however, resulting in an updated projected overspend of £6.6m for the financial year 2024/25. If this materialises, it would need to be funded from earmarked reserves or any one-off funding. 

The report also included an update on the projected Medium Term Financial Plan. This incorporated some of the expenditure pressures the Council was experiencing, as well as early announcements from the Budget on 30th October 2024. There was still significant uncertainty around funding with more detail on the funding announcements expected to follow in the Local Government Provisional Settlement expected week commencing 16th December. This would however be a one year settlement and therefore the information in respect of future years was indicative and subject to a fundamental review by the Government of Local Government Funding.

The report identified a potential further pressure across the MTFP and highlighted potential options for addressing this. This would be considered in the budget report in February 2025.

Despite the budget challenges, the Council remained ambitious for Stockton-on-Tees and getting a better future for everyone who lives, works and plays here.  The Council was confident it could work with partners and communities to put in place new and innovative approaches which would not only save money but also reshape what the Council did for the better and in the best interests of residents. The Council would do this through the Powering Our Future Programme.

In order to address the budget gap the Council needed to act quickly so the first of the transformation reviews delivered through the Powering our Future programme were taking place between now and early 2025.

In the meantime, all staff were being instructed to think carefully before authorising any spending and to consider how the Council could work with partners and communities to ensure the best possible outcomes for residents, despite a reducing budget.

The updated Capital Programme was set out in an appendix to the report  and summarised within a table in the report.

RESOLVED that:-

1. The updated financial position for 2024/25 be noted.

2. The revised Capital Programme at Appendix A of the report be noted.

3. The emerging issues for the MTFP be noted.

3. Reasons for the Decision

To update Members on financial performance in 2024/25 and to outline proposals for the 2025/26 Budget and MTFP based on latest available information.

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

            Not applicable

Proper Officer