Redcar and Cleveland Borough Council's Cabinet will consider a report which sets out its financial plan for the coming years.
The report proposes a balanced budget for 2022/23 and a draft Medium Term Financial Plan through to 2026/27.
The report considers pressures on service delivery and proposed additional investment to improve residents' lives in the borough.
The Council is facing continuing financial pressure to meet significant increasing demand for both adult and children's social care. Additional investment is also anticipated to deal with increased volumes of waste and to meet inflationary increases in prices for processing recyclable waste.
The report outlines how the 1.25% increase in national insurance rates from April 2022 will add to the council's pay bill along with predicted inflation levels. The expected significant rise in energy costs will also put pressure on its finances.
The Council is still waiting for detailed information about its level of Government grant funding for the next financial year and how much money in grant the council is likely to get in future years.
The report recommends that the Cabinet agrees to consult on a proposed 1.99% increase in Council Tax and also on a proposed 2% increase in the Adult Social Care Precept for the next financial year.
It also sets out proposed increases to some Fees and Charges levied by the Council and says that services have identified £4.21m of efficiencies to be delivered over the term of the Medium Term Financial Plan.
The report further recommends that Cabinet should agree to consult on an investment programme with businesses in the borough.
One of the Council's key priorities is climate change and the report proposes investment in a range of crucial initiatives. This will make a significant contribution towards achieving the Council's aim of a carbon-neutral borough by 2030.
The report proposes more investment in disabled facilities and adaptations to allow people to live more independently in their own homes and in supporting children in the Council's care.
Extra investment in schools is planned to expand existing and to create new provision to meet the educational needs of young people. The report also highlights extensive plans to improve the physical appearance of the borough and enhance residents' quality of life and prosperity. It highlights major investment through the Redcar Town Fund and Loftus Future High Streets Fund and the development of The Regent, Guisborough Town Hall and Kirkleatham Walled Garden.
Continuing investment is also planned in the borough's transport infrastructure, including the road network, repair and maintenance of highways assets, drainage maintenance and flood prevention.
The Council is proposing initiatives to improve the quality of life for our residents, support some of our most vulnerable people and respond to some of the issues identified in a residents' survey undertaken earlier this year.
Among the proposals are:
- Providing more electric charging points across our borough to help motorists switch to electric cars;
- Replacing more of our petrol and diesel vehicles with electric and/or hydrogen alternatives would help our aim for a carbon-neutral borough by 2030;
- Planting more trees will cut carbon and make where residents live more beautiful;
- Promoting Kirkleatham Museum as a 'go-to' regional attraction under a new business plan;
- Making residents safer through highway improvements, by restricting the sale of illicit tobacco and alcohol and through a new supported living scheme in Loftus for people with disabilities and older people;
- Supporting people's mental health through a new hub in East Cleveland and by ensuring there is great mental health support for young people in all our schools;
- Encouraging healthier lifestyles and enjoyment of the great outdoors through new cycle schemes;
- Providing young people and adults with the skills they need for a better quality of life by taking on more apprentices.
A Government report about Redcar and Cleveland Borough Council finances was released today.
The report was commissioned by the Department of Levelling Up, Housing and Communities when the Council was awarded a Government grant following the criminal cyber-attack on its systems in February 2020.
It provides a strong endorsement of the Council's financial stewardship, recognising the progress made in recent years, with recommendations that are strongly aligned to the themes the Council had identified as the key areas of focus in its financial planning.
This is reflected in a minimal set of recommendations within the report, which are addressed as part of the approach the Council has taken in developing its budget proposals and new Medium Term Financial Plan.
The report found:
- The Council is well governed and financially stable in the short to medium term and the grant has helped the Council to rebuild reserves, which were considered by its auditors to be at too low a level;
- The Council faces ongoing future demand pressures in Adult Social Care and that Children's services have been under considerable pressure;
- The Council needs to work hard to maintain a healthy level of reserves and to balance its level of borrowing with an ambitious investment programme;
- A five-year-plan should focus on financial resilience and sustainability – the Council had already started to develop this.
Cllr Glyn Nightingale, Cabinet member for Resources, said: “The Council continues to come under huge financial pressure, particularly from the demands on our social care services and the increased costs of dealing with waste and recycling.
“Like many other councils across the country, Redcar and Cleveland is still penalised on a daily basis by Central Government's persistent austerity towards local government. The inadequate government grant we receive means we have no choice in proposing an increase in Council Tax. This is vital to ensure crucial services our residents need and want us to provide are maintained.
“We propose this with a heavy heart but the only other option is to cut significantly services our residents rely on. Similarly, we have no choice but to propose an increase in the Adult Social Care Precept. The government's increase in National Insurance contributions will not pay for adult social care in the years to come because the money will go to the NHS.
“Redcar and Cleveland has an ageing population. People needing our help and the most vulnerable in our borough rightly expect us to help. That is what we are committed to do.
“We also have ambitious plans to make our residents' lives better and everybody can be assured that we will do everything we can to make that happen.
“We welcome the Government report into our finances, the strong endorsement it provides in terms of our financial management and planning, and the acknowledgement of the unique circumstances of the cyber-attack as the context for us seeking government support. I would like to thank our staff for the ongoing effort they have made to get us to this position. Unfortunately, the increasing demand for our services means the financial challenge will remain into the future."