Council predicts £3.7m overspend for year

It has been predicted Middlesbrough Council will overspend this financial year

A council is already on course to spend £3.7m more than its agreed 2024/25 budget, according to a year-end forecast.

In a report agreed by Middlesbrough Council's executive, it was concluded there was a "need to take management action" to control spending.

It comes after it was announced the council was no longer under formal scrutiny from the government over its financial concerns.

Clive Heaphy, interim chief executive, said the "picture remains extremely challenging and it will be a challenge for members and officers to make sure we come in as close to budget as we possibly can do".

The report by interim director of finance Debbie Middleton said the council's position remained "critical", adding: "The council has achieved significant improvement in its financial position from that which existed at the start of the 2023/24 financial year.

"However, it continues to spend above its available income sources."

Mr Heaphy said there are "tough decisions" to make

The council was only able to produce a balanced budget, worth £143.1m, for the current financial year with exceptional financial support from the government, according to the Local Democracy Reporting Service.

But the report identified £1.87m of savings which, if fully delivered, could reduce the year-end overspend forecast.

It said the forecast included almost £2.5m net of savings and warned the exceptional financial support – essentially permission to borrow – may have to be used further.

The Ministry of Housing, Communities and Local Government previously approved in principle up to £13.4m worth of borrowing by the council, £4.7m of which went towards the 2024/25 budget.

'Tough decisions'

Mr Heaphy told a meeting of the executive that transformation plans for the local authority involved using "slicker processes" and changing the way services were delivered to residents.

"We are making really good progress, but let's not kid ourselves. There is still a a long way to go and there are tough decisions to make," he continued.

The council is aiming to make £15.3m worth of savings in 2024/25.