Agenda item

Council considered the final report setting the Council’s 2025/26 Budget and Council Tax and outlining the Medium-Term Financial Plan (MTFP) position to 2028. The report also included an update on the financial performance for 2024/25.

 

The report outlined the budget for 2025/26 and indicative MTFP for future years. The provisional finance settlement had been received on 18th December 2024, and this indicated the funding for 2025/26, with the final allocations to be confirmed in February. In order to prepare a Medium-Term Financial Plan, assumptions had been made in respect of future years, however, this funding was extremely uncertain and subject to future Government spending reviews. 

 

The Provisional Financial Settlement had provided funding allocations for 2025/26 only. The Government had indicated that there would be reforms to Local Government Finance from 2026/27 onwards and would take forward the fair funding review, also considering the reset of Business Rates. Government have indicated there would be a multi-year settlement from 2026/27 onwards.

 

It was moved by Councillor Bob Cook and seconded by Councillor Lisa Evans:

 

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)         that the controlled reserves and provisions are adequate for their purpose.

 

General Fund Budget

 

2.         A 2025/26 Council Tax requirement for Stockton-on-Tees Borough Council of £124,538,859 be approved.

 

3.         A 2025/26 Council Tax requirement for Stockton-on-Tees Borough Council inclusive of Parish Precepts £125,612,202 be approved.

 

4.         The 2025/26 budget and indicative 2026/28 MTFP as outlined in paragraphs 20-46, the level of General Fund Balances and the release of reserves to balance the 2024/25 in year financial position as set out in paragraphs 14-19 be approved.

 

5.         The existing £6m prudential borrowing approval for investment in Children’s Services residential homes and Spark of Genius be revised and replaced with a Council wide investment fund of £20m from prudential borrowing for self-funding capital investments linked to transformation of Services. This could include investments relating to climate change. Individual schemes will need to be approved by Cabinet.

 

6.         The use of £950,000 of Prudential Borrowing to fund the investment required at Preston Park covered within the Levelling Up Fund Preston Park Museum and Grounds Enhancements report to Cabinet on 16th January 2025 be approved.

 

Taxation

 

SBC

 

7.         The Council Tax for Stockton-on-Tees Borough Council prior to Parish, Fire and Police Precepts be increased by 4.95%, which includes the Government Levy of 2% in respect of Social Care, i.e. to £2,038.98 at Band D (£1,359.32 at Band A).

 

Fire, Police & Parish

 

8.         Council note the Police & Crime Commissioner has set a precept of £19,406,631 which equates to a Council Tax of £317.73 at Band D (£211.82 at Band A).

 

9.         Council note the Fire Authority is proposing a precept of £5,769,522 which equates to a Council Tax of £94.46 at Band D (£62.97 at Band A).

 

10.       Council note the Parish precepts as set out in paragraph 69 of the budget report.

 

Capital

 

11.       The Capital Programme attached at Appendix A & B be approved.

 

Organisational and HR

 

12.       The Pay Policy Statement including the pay and grading structure at Appendix C and C(1) be approved.

 

Members Allowances

 

13.       Members allowances be frozen for 2025/26. This will mean that these allowances have been frozen since 2013/14.

 

Council Tax - Statutory Requirements

 

14.       The statutory requirements for Council Tax as shown in Appendix D be approved.

 

15.       The Council must set its Local Council Tax Reduction scheme annually by 11 March of the preceding financial year. The current Local Council Tax Reduction Scheme be retained for the financial year 2025/26 incorporating the updates for the prescribed requirements in regulations and to reflect updated income figures in the table at Schedule 1. The scheme is available here www.stockton.gov.uk/CTR.

 

16.       That the Director of Finance, Transformation and Performance and Deputy Chief Executive be given delegated authority, in consultation with the Leader, to make further adjustments to the income table and/or disregard additional funds should the government issue revised publications with regards to these matters after 19th February, to ensure that Government’s intentions for additional support is maintained.

 

Capital Strategy

 

17.       The Capital Strategy as set out at Appendix E to the report be approved, including the Flexible Use of Capital Receipts Policy and the MRP Strategy.

 

Treasury Management/Prudential Code

 

18.       The Treasury Management Strategy as set out in Appendix F to the report be approved. 

 

Investment Strategy

 

19.       The Investment Strategy as set out at Appendix G to the report be approved.

 

At its meeting held on 10 February 2025 Cabinet RESOLVED that:

 

20. The Officer Appointments to outside bodies and governing bodies at Appendix C (1) be approved and noted.

 

It was moved by Councillor Tony Riordan and seconded by Councillor Niall Innes that the motion be amended as follows:

 

1.         Remove recommendation 5

Detail

 

1.         The report currently includes the below recommendation:

 

5.         To revise the existing £6m prudential borrowing approval for investment in Children’s Services residential homes and Spark of Genius and replace with a Council wide investment fund of £20m from prudential borrowing for self-funding capital investments linked to transformation of Services. This could include investments relating to climate change. Individual schemes will need to be approved by Cabinet.

 

 

2.         Paragraphs 25-28 to be removed. Previous position to be reinstated where all new borrowing approvals need specific approval by Council.

 

Following debate, a recorded vote took place on the amendment as follows:

 

For the amendment:

 

Cllr Diane Clarke OBE, Cllr John Coulson, Cllr Jason French, Cllr John Gardner, Cllr Lynn Hall, Cllr Elsi Hampton, Cllr Stefan Houghton, Cllr Shakeel Hussain, Cllr Niall Innes, Cllr Mohammed Mazi, Cllr Jack Miller, Cllr Sufi Mubeen, Cllr David Reynard, Cllr Stephen Richardson, Cllr Tony Riordan, Cllr Vanessa Sewell, Cllr Andrew Sherris, Cllr Hugo Stratton, Cllr Ted Strike, Cllr Emily Tate, Cllr Jim Taylor, Cllr Laura Tunney, Cllr Hilary Vickers, Cllr Marcus Vickers. (24)

 

Against the amendment:

 

Cllr Stefan Barnes, Cllr Jim Beall, Cllr Pauline Beall, Cllr Michelle Bendelow, Cllr Clare Besford, Cllr Marc Besford, Cllr Carol Clark, Cllr Bob Cook, Cllr Nigel Cook, Cllr Ian Dalgarno, Cllr Richard Eglington, Cllr Lisa Evans, Cllr Kevin Faulks, Cllr Nathan Gale, Cllr Ray Godwin, Cllr Barbara Inman, Cllr Eileen Johnson, Cllr Ann McCoy, Cllr Mick Moore, Cllr Ross Patterson, Cllr Paul Rowling, Cllr Norma Stephenson OBE, Cllr Mick Stoker, Cllr Marilyn Surtees, Cllr Sylvia Walmsley, Cllr Katie Weston, Cllr Paul Weston, Cllr Barry Woodhouse. (28)

 

The amendment was not carried.

 

It was moved by Councillor Tony Riordan and seconded by Councillor Niall Innes that the motion be amended as follows:

 

1.         Remove Recommendation 6

 

Detail

 

1.         The report currently includes the below recommendation:

 

6.         Agree the use of £950,000 of Prudential Borrowing to fund the investment required at Preston Park covered within the Levelling Up Fund Preston Park Museum and Grounds Enhancements report to Cabinet on 16th January 2025.

 

2.         This recommendation would be removed.

 

3.         Paragraph 29 (m) will be removed and this will save £65,000 per annum across the Medium Term Financial Plan from 2026/27.

 

4.         Paragraph 47 would be re-worded:

 

47     Preston Park museum extension, drainage works have been identified to comply with modern environmental regulations and £950,000 has been added to the programme, funded by existing resources. It is suggested that Cabinet consider reallocating an element of the £2m currently earmarked for regeneration from the Indigenous Growth Fund.

 

Following debate, a recorded vote took place on the amendment as follows:

 

For the amendment:

 

Cllr Diane Clarke OBE, Cllr John Coulson, Cllr Jason French, Cllr John Gardner, Cllr Lynn Hall, Cllr Elsi Hampton, Cllr Stefan Houghton, Cllr Shakeel Hussain, Cllr Niall Innes, Cllr Mohammed Mazi, Cllr Jack Miller, Cllr Sufi Mubeen, Cllr David Reynard, Cllr Stephen Richardson, Cllr Tony Riordan, Cllr Vanessa Sewell, Cllr Andrew Sherris, Cllr Hugo Stratton, Cllr Ted Strike, Cllr Emily Tate, Cllr Jim Taylor, Cllr Laura Tunney, Cllr Hilary Vickers, Cllr Marcus Vickers. (24)

 

Against the amendment:

 

Cllr Stefan Barnes, Cllr Jim Beall, Cllr Pauline Beall, Cllr Michelle Bendelow, Cllr Clare Besford, Cllr Marc Besford, Cllr Carol Clark, Cllr Bob Cook, Cllr Nigel Cook, Cllr Richard Eglington, Cllr Lisa Evans, Cllr Kevin Faulks, Cllr Nathan Gale, Cllr Barbara Inman, Cllr Eileen Johnson, Cllr Ann McCoy, Cllr Ross Patterson, Cllr Paul Rowling, Cllr Norma Stephenson OBE, Cllr Mick Stoker, Cllr Marilyn Surtees, Cllr Sylvia Walmsley, Cllr Katie Weston, Cllr Paul Weston, Cllr Barry Woodhouse. (25)

 

Abstained:

 

Cllr Ian Dalgarno, Cllr Ray Godwin, Cllr Mick Moore. (3)

 

The amendment was not carried.

 

It was moved by Councillor Tony Riordan and seconded by Councillor Niall Innes that the motion be amended as follows:

 

Additional Recommendation

 

1.         Propose a reduction in members allowances to the Independent Members Remuneration Panel;

 

a.         Remove Vice Chairs Special Responsibility Allowance and this would generate a saving of £28,125

b.         Reduce Cabinet position additional allowances by 10% and this would generate an annual saving of £10,625

 

 

2.         Remove the £300,000 allocation from the Urban Park Opening Event in 2026/27.

 

Detail

 

3.         Remove Vice Chairs Special Responsibility Allowance and this would generate a saving of £28,125 and reduce Cabinet Position Special Allowances by 10% and this would generate a saving of £10,625. In accordance with The Local Authorities (Members' Allowances) (England) Regulations 2003 changes to members allowances must be subject to review by the Independent Members Remuneration Panel. As a result, if this proposal is supported by full council at the Budget meeting, it will be subsequently submitted to the panel for consideration. Following this, the recommendations of the Independent Members Remuneration Panel will then be presented to Council for approval.

 

4.         Subject to the outcome of the Members Allowances Independent Remuneration Panel, if the savings are achieved as outlined above, this funding is allocated to the Civic Enforcement Budget. It is suggested that Cabinet consider, in the first year of savings, these are used to fund a CCTV vehicle to support Civic Enforcement, in relation to school parking issues around the borough, staffed by the existing Civic Enforcement team. In the following years, it could be used to enhance staffing within the Civic Enforcement Team.

 

5.         Remove the budget estimate for £300,000 for the Urban Park Opening Event. Incorporate any opening event costs into the existing SIRF programme and budget allocation.

 

Following debate, a recorded vote took place on the amendment as follows:

 

For the amendment:

 

Cllr Diane Clarke OBE, Cllr John Coulson, Cllr Jason French, Cllr John Gardner, Cllr Lynn Hall, Cllr Elsi Hampton, Cllr Stefan Houghton, Cllr Shakeel Hussain, Cllr Niall Innes, Cllr Mohammed Mazi, Cllr Jack Miller, Cllr Sufi Mubeen, Cllr David Reynard, Cllr Stephen Richardson, Cllr Tony Riordan, Cllr Vanessa Sewell, Cllr Andrew Sherris, Cllr Hugo Stratton, Cllr Ted Strike, Cllr Emily Tate, Cllr Jim Taylor, Cllr Laura Tunney, Cllr Hilary Vickers, Cllr Marcus Vickers. (24)

 

Against the amendment:

 

Cllr Stefan Barnes, Cllr Jim Beall, Cllr Pauline Beall, Cllr Michelle Bendelow, Cllr Clare Besford, Cllr Marc Besford, Cllr Carol Clark, Cllr Bob Cook, Cllr Nigel Cook, Cllr Ian Dalgarno, Cllr Richard Eglington, Cllr Lisa Evans, Cllr Kevin Faulks, Cllr Nathan Gale, Cllr Ray Godwin, Cllr Barbara Inman, Cllr Eileen Johnson, Cllr Ann McCoy, Cllr Mick Moore, Cllr Ross Patterson, Cllr Paul Rowling, Cllr Norma Stephenson OBE, Cllr Mick Stoker, Cllr Marilyn Surtees, Cllr Sylvia Walmsley, Cllr Katie Weston, Cllr Paul Weston, Cllr Barry Woodhouse. (28)

 

The amendment was not carried.

 

It was moved by Councillor Tony Riordan and seconded by Councillor Niall Innes that the motion be amended as follows:

 

Additional Recommendation

 

1.         Increase the budget estimate for the Regeneration & Inclusive Growth Directorate by £67,000, it is suggested that cabinet consider using this to fund an increase in compliance capacity within the planning service.

 

2.         It is suggested that this budget is generated by reducing spend on external recruitment agencies by the same sum.

 

Detail

1.         Reduction of £67,000 from use of external recruitment agencies. The average spend over the last years on external recruitment agencies is around £67,000 per year. The Council refrain from using external recruitment agencies in the future.

 

2.         It is suggested that the savings above are redirected to the Planning Department, to fund an increase in compliance capacity within the planning service.

 

Following debate, a recorded vote took place on the amendment as follows:

 

For the amendment:

 

Cllr Diane Clarke OBE, Cllr John Coulson, Cllr Jason French, Cllr John Gardner, Cllr Lynn Hall, Cllr Elsi Hampton, Cllr Stefan Houghton, Cllr Shakeel Hussain, Cllr Niall Innes, Cllr Mohammed Mazi, Cllr Jack Miller, Cllr Sufi Mubeen, Cllr David Reynard, Cllr Stephen Richardson, Cllr Tony Riordan, Cllr Vanessa Sewell, Cllr Andrew Sherris, Cllr Hugo Stratton, Cllr Emily Tate, Cllr Jim Taylor, Cllr Laura Tunney, Cllr Hilary Vickers, Cllr Marcus Vickers. (23)

 

Against the amendment:

 

Cllr Stefan Barnes, Cllr Jim Beall, Cllr Pauline Beall, Cllr Michelle Bendelow, Cllr Clare Besford, Cllr Marc Besford, Cllr Carol Clark, Cllr Bob Cook, Cllr Nigel Cook, Cllr Ian Dalgarno, Cllr Richard Eglington, Cllr Lisa Evans, Cllr Kevin Faulks, Cllr Nathan Gale, Cllr Ray Godwin, Cllr Barbara Inman, Cllr Eileen Johnson, Cllr Ann McCoy, Cllr Mick Moore, Cllr Ross Patterson, Cllr Paul Rowling, Cllr Norma Stephenson OBE, Cllr Mick Stoker, Cllr Ted Strike, Cllr Marilyn Surtees, Cllr Sylvia Walmsley, Cllr Katie Weston, Cllr Paul Weston, Cllr Barry Woodhouse. (29)

 

The amendment was not carried.

 

It was moved by Councillor Tony Riordan and seconded by Councillor Niall Innes that the motion be amended as follows:

 

Additional Recommendation

 

1.         Reduce the budget estimate allocated to the Corporate Service Directorate budget of £230,000. This could be generated by

 

a)         £18,000 from ceasing to print Council and committee papers

b)         £145,000 reduction to the media team

c)         £67,000 from the cost of promotional printing

 

2.         Allocate budget to the Adults, Health and Wellbeing Directorate of £193,000. This could be used to support additional Community Enforcement activity.

 

3.         Allocate the remaining £37,000 to Children’s Services Directorate in 2025/26 and to the Regeneration and Inclusive Growth Directorate in subsequent years.

 

Detail

 

1.         Reduce level of committee paper printing in its entirety from £18,000 to £0 per year from 2025/26.

 

2.         Reduce the budget for the Council’s media team by £145,000. The cost of communication and media support (Press and Comms team and photographer) be reduced by £145,000 from £245,000 per year.

 

3.         Reduce the budget for communications materials and printing by £67,000 from £134,000 per year from 2025/26. This budget excludes the cost of Stockton News.

 

4.         Increase the budget;

 

a.         Adults, Health & Wellbeing Directorate by £193,000 per year.

b.         Children’s Services £37,000 in 2025/26 only.

c.         Regeneration & Inclusive Growth Directorate £37,000 from 2026/27 onwards.

 

5.         It is suggested that Cabinet consider utilising the £193,000 to recruit additional Civic Enforcement Officers. The remaining £37,000, it is suggested that Cabinet consider utilising this to invest in Youth Services for 25/26 only and additional capacity within Planning Compliance.

 

Following debate, a recorded vote took place on the amendment as follows:

 

For the amendment:

 

Cllr Diane Clarke OBE, Cllr John Coulson, Cllr Jason French, Cllr John Gardner, Cllr Lynn Hall, Cllr Elsi Hampton, Cllr Stefan Houghton, Cllr Shakeel Hussain, Cllr Niall Innes, Cllr Mohammed Mazi, Cllr Jack Miller, Cllr Sufi Mubeen, Cllr David Reynard, Cllr Stephen Richardson, Cllr Tony Riordan, Cllr Vanessa Sewell, Cllr Andrew Sherris, Cllr Hugo Stratton, Cllr Emily Tate, Cllr Jim Taylor, Cllr Laura Tunney, Cllr Hilary Vickers, Cllr Marcus Vickers. (23)

 

Against the amendment:

 

Cllr Stefan Barnes, Cllr Jim Beall, Cllr Pauline Beall, Cllr Michelle Bendelow, Cllr Clare Besford, Cllr Marc Besford, Cllr Carol Clark, Cllr Bob Cook, Cllr Nigel Cook, Cllr Ian Dalgarno, Cllr Richard Eglington, Cllr Lisa Evans, Cllr Kevin Faulks, Cllr Nathan Gale, Cllr Ray Godwin, Cllr Barbara Inman, Cllr Eileen Johnson, Cllr Ann McCoy, Cllr Mick Moore, Cllr Ross Patterson, Cllr Paul Rowling, Cllr Norma Stephenson OBE, Cllr Mick Stoker, Cllr Ted Strike, Cllr Marilyn Surtees, Cllr Sylvia Walmsley, Cllr Katie Weston, Cllr Paul Weston, Cllr Barry Woodhouse. (29)

 

The amendment was not carried.

 

There were no further amendments.

 

Following debate a recorded vote took place on the substantive motion.

 

For the substantive motion:

 

Cllr Stefan Barnes, Cllr Jim Beall, Cllr Pauline Beall, Cllr Michelle Bendelow, Cllr Clare Besford, Cllr Marc Besford, Cllr Carol Clark, Cllr Bob Cook, Cllr Nigel Cook, Cllr Ian Dalgarno, Cllr Richard Eglington, Cllr Lisa Evans, Cllr Kevin Faulks, Cllr Nathan Gale, Cllr Ray Godwin, Cllr Barbara Inman, Cllr Eileen Johnson, Cllr Ann McCoy, Cllr Mick Moore, Cllr Ross Patterson, Cllr Paul Rowling, Cllr Norma Stephenson OBE, Cllr Mick Stoker, Cllr Marilyn Surtees, Cllr Sylvia Walmsley, Cllr Katie Weston, Cllr Paul Weston, Cllr Barry Woodhouse. (28)

 

Against the substantive motion:

 

Cllr Diane Clarke OBE, Cllr John Coulson, Cllr Jason French, Cllr John Gardner, Cllr Lynn Hall, Cllr Elsi Hampton, Cllr Stefan Houghton, Cllr Shakeel Hussain, Cllr Niall Innes, Cllr Mohammed Mazi, Cllr Jack Miller, Cllr Sufi Mubeen, Cllr David Reynard, Cllr Stephen Richardson, Cllr Tony Riordan, Cllr Vanessa Sewell, Cllr Andrew Sherris, Cllr Hugo Stratton, Cllr Ted Strike, Cllr Emily Tate, Cllr Jim Taylor, Cllr Laura Tunney, Cllr Hilary Vickers, Cllr Marcus Vickers. (24)

 

The substantive motion was carried and it was:

 

RESOLVED That:

 

1.         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)         that the controlled reserves and provisions are adequate for their purpose.

 

General Fund Budget

 

2.         A 2025/26 Council Tax requirement for Stockton-on-Tees Borough Council of £124,538,859 be approved.

 

3.         A 2025/26 Council Tax requirement for Stockton-on-Tees Borough Council inclusive of Parish Precepts £125,612,202 be approved.

 

4.         The 2025/26 budget and indicative 2026/28 MTFP as outlined in paragraphs 20-46, the level of General Fund Balances and the release of reserves to balance the 2024/25 in year financial position as set out in paragraphs 14-19 be approved.

 

5.         The existing £6m prudential borrowing approval for investment in Children’s Services residential homes and Spark of Genius be revised and replaced with a Council wide investment fund of £20m from prudential borrowing for self-funding capital investments linked to transformation of Services. This could include investments relating to climate change. Individual schemes will need to be approved by Cabinet.

 

6.         The use of £950,000 of Prudential Borrowing to fund the investment required at Preston Park covered within the Levelling Up Fund Preston Park Museum and Grounds Enhancements report to Cabinet on 16th January 2025 be approved.

 

Taxation

 

SBC

 

7.         The Council Tax for Stockton-on-Tees Borough Council prior to Parish, Fire and Police Precepts be increased by 4.95%, which includes the Government Levy of 2% in respect of Social Care, i.e. to £2,038.98 at Band D (£1,359.32 at Band A).

 

Fire, Police & Parish

 

8.         Council note the Police & Crime Commissioner has set a precept of £19,406,631 which equates to a Council Tax of £317.73 at Band D (£211.82 at Band A).

 

9.         Council note the Fire Authority is proposing a precept of £5,769,522 which equates to a Council Tax of £94.46 at Band D (£62.97 at Band A).

 

10.       Council note the Parish precepts as set out in paragraph 69 of the budget report.

 

Capital

 

11.       The Capital Programme attached at Appendix A & B be approved.

 

Organisational and HR

 

12.       The Pay Policy Statement including the pay and grading structure at Appendix C and C(1) be approved.

 

Members Allowances

 

13.       Members allowances be frozen for 2025/26. This will mean that these allowances have been frozen since 2013/14.

 

Council Tax - Statutory Requirements

 

14.       The statutory requirements for Council Tax as shown in Appendix D be approved.

 

15.       The Council must set its Local Council Tax Reduction scheme annually by 11 March of the preceding financial year. The current Local Council Tax Reduction Scheme be retained for the financial year 2025/26 incorporating the updates for the prescribed requirements in regulations and to reflect updated income figures in the table at Schedule 1. The scheme is available here www.stockton.gov.uk/CTR.

 

16.       That the Director of Finance, Transformation and Performance and Deputy Chief Executive be given delegated authority, in consultation with the Leader, to make further adjustments to the income table and/or disregard additional funds should the government issue revised publications with regards to these matters after 19th February, to ensure that Government’s intentions for additional support is maintained.

 

Capital Strategy

 

17.       The Capital Strategy as set out at Appendix E to the report be approved, including the Flexible Use of Capital Receipts Policy and the MRP Strategy.

 

Treasury Management/Prudential Code

 

18.       The Treasury Management Strategy as set out in Appendix F to the report be approved. 

 

Investment Strategy

 

19.       The Investment Strategy as set out at Appendix G to the report be approved.

 

At its meeting held on 10 February 2025 Cabinet RESOLVED that:

 

20. The Officer Appointments to outside bodies and governing bodies at Appendix C (1) be approved and noted.