Budget 2024-2025

Our money comes from Council Tax, Business Rates, funds from fees and charges, and government grants.

Each year the government gives us money to help cover the cost of services. The amount is decided in December, shortly after we have announced our own budget proposals.

The proportion of our budget which is made up from general government funding has reduced over the past 10 years.

During the same period, the money we receive from Council Tax has become more important.

Most people in Middlesbrough live in properties which are in Council Tax bands A to C.

This means we raise less from Council Tax than areas which have more properties in the higher tax bands.

The level of rates businesses pay is set by government. Many small businesses do not pay Business Rates.

We also receive money from some services and venues. This income is used to pay for the services we provide.

Providing social care for vulnerable people in Middlesbrough takes up around 83% of our budget.

That is a much higher proportion than many other local authorities.

We spend the remaining 17% of our budget on a huge range of other services, including:

• street cleaning and area care
• waste and recycling collection
• libraries and community hubs
• museums and venues
• cultural events
• parks and other green spaces
• street wardens, community safety, and fly tipping removal
• highways
• street lighting
• public health and food safety
• regeneration
• benefits and welfare advice

Yes. The proposed budget for 2024-2025 includes savings proposals totalling around £14m, rising to around £21m in 2026/27.

A report approved by the council's Executive set out how a shortfall of around £6.3m remains in the budget.

Our overall budget has reduced significantly in the past 10 years.

The cost of providing social care is increasing and we have more demand for social care than many other areas, including our neighbours.

More adults in Middlesbrough are admitted to residential and nursing care homes at 42.4 per 100,000 of population, compared to the national average of 13.9 per 100,000 in 2021-2022.

In terms of child protection plans in place in Middlesbrough, there were 140 per 10,000 children in 2022-2023, while the national average was 43.2 per 10,000 children.

Many of the proposals being considered in the budget are targeted towards saving money in social care departments, while at the same time making sure we can continue to deliver a safe and effective service.

Yes. Inflation has been high for over a year. It reached 11% last October and as of November 2023 stood at 3.9%.

That has increased the cost of everything the council buys to delivers its services, such as fuel and energy.

In an attempt to reduce inflation, the Bank of England's interest rate has risen significantly to 5.25%. This has increased some of the council's debt repayments in a similar way to how household budgets have been affected.

Many of the savings proposed, around £9.9m, will be met by increasing efficiency in the children's and adult social care budgets.

In children's social care, there will be enhanced early help and prevention, the development of new models for placements of looked after children, and more in-house fostering capacity.

In adult social care, there will be more early intervention, increased use of digital technology, more of a focus on reablement, and a broadening of the types of accommodation we offer.

A public consultation has now started on the budget proposals, allowing you to have your say on measures that would have an impact on frontline services.

They include:

• moving in line with many local authority neighbours by introducing fortnightly waste collections and focusing on improving recycling rates alongside residents
• introducing a £40 annual charge for green waste collections, which would be extended into a longer collection season
• the potential closure of the Captain Cook Birthplace Museum
• a £2 per day parking charge at Stewart Park
• a £24 per job charge to collect bulky waste

As part of the savings proposals, around 75 full time equivalent posts could be cut.

The easiest way to have your say on our proposed savings is by filling in our online consultation.

If you need a paper survey, a version in another language, or a version in an alternative format which meets your needs, email letstalk@middlesbrough.gov.uk. You can also email us if you have a question about the proposals.

The consultation closes on 18 January 2024.

Many sources of funding are provided directly by the government or funnelled through other bodies like the Tees Valley Combined Authority - and can only be spent on specific projects.

This includes funding from the Government's Levelling Up, Future High Streets, and Towns Funds.

A recent example of specific grant-funded work is the ongoing transformation of Captain Cook Square.

By law, this type of funding cannot be spent on anything else but the regeneration and infrastructure projects it is awarded for.

If the council did not deliver these projects it would not receive the funding.

The council has critically low levels of reserves to meet unforeseen spending pressures.

Reserves are like savings - once they're used up, they cannot be used again.

The government has said that the core spending power of councils has increased.

When calculating councils' core spending power, the government assumes that Council Tax will be increased each year by the maximum legally allowed.

That is currently 2.99%, plus 2% which is specifically set aside to pay for adult social care - a total of 4.99%.

Every 1% increase adds around £675,000 per year to the council's budget.

Any decision not to raise Council Tax leads to more budget pressure and potential cuts to services.

Council Tax has not been raised by the maximum amount in the past two years, meaning our core spending power hasn't increased in the way the government assumes.

It's proposed that Council Tax bills will rise by the maximum of 4.99%.

That increase would mean those in band A properties - over half of households in the Middlesbrough - would pay an extra £1.20 per week.

Those in band B properties (17.4%) would pay an extra £1.40 per week. Those in band C properties (17.3%) would pay an extra £1.61 per week.

National comparisons often look at the tax charged for a band D property.

In Middlesbrough, there are not many households in that category (only 8.4%). Those in band D would pay an extra £1.81 per week.

Per property, Council Tax bills in Middlesbrough are lower than the national average.

Yes. We've recently launched a new Council Tax reduction scheme, which supports a wide range of people who might need help with their bills.

The full criteria and more information is available on the Our Council Tax Reduction scheme page.

We have also offered a wide range of support during the cost of living crisis, with more information available on the cost of living page.

The local government finance settlement, which spells out how much funding we will receive from government, was broadly in line with forecasts and brought no new resources above those already planned for.

A budget shortfall of £6.3m remains and on Wednesday, January 17 the Executive will be asked to agree that the council makes an application to government for exceptional financial support to help us balance this year's budget.

If granted by government, it would give the council the ability to borrow money as a 'bridging loan' to support its short term financial recovery and balance its 2024/25 budget.

Technically, councils cannot go bankrupt.

If we're unable to set a balanced budget, we could issue what is called a Section 114 notice.

This has been seen recently at councils under different party-political control, including Thurrock, Nottingham, Woking, and Birmingham.

If that happens, it is possible the government would intervene in the running of the council.

That could lead to the council only delivering legally-mandated services like social care and refuse collection, with all services we are not legally required to deliver put at risk.

In that scenario, many council staff roles would be under threat, while the government could impose a much larger Council Tax increase on Middlesbrough residents.

The budget proposals agreed by Executive contain a number of financial plans which see further savings in future years, especially through improved efficiencies in social care.

The Executive has also agreed to a review of the council's assets, to identify land and buildings which the council could sell.

It includes car parks, strips of residential land, shopping and industrial parks and a golf course.

Nothing has yet been sold by the council, and each asset will be considered on an individual basis before any sale is agreed.

The capital raised from asset sales is planned to fund a transformation in the way services are run which would allow the council to continue to deliver what's important to the people of Middlesbrough.