Agenda item

Motion 5: Request a Financial Stability Report

Minutes:

It was moved by Councillor L Bartoli, and seconded by Councillor Dr O Scargill that:

 

This Council notes with concern the recent low ranking in the financial section of the Office for Local Government (Oflog) report, which placed North Tyneside at 302nd out of 317 councils in finance and 235th overall as reported in the Times on 30 April 2024. As representatives of our community, it is imperative that we ensure transparency and financial robustness to maintain the trust and confidence of our residents.

 

Ministers set up Oflog last summer to provide “authoritative and accessible” performance data to support improvement in local government. Oflog measures councils across 27 categories in five main areas: waste management, corporate and finance, adult social care, planning, and roads. 

 

Therefore, this Council resolves to request a report from the S.151 Officer addressing the following points:

 

  • An analysis of the reasons behind North Tyneside’s low financial ranking in the recent Oflog report, including a comparison with similarly sized councils and identification of specific areas where our financial performance falls short. 
  • An outline of the current measures in place to ensure the financial stability and sustainability of North Tyneside Council, as well as the steps being taken to improve financial management and efficiency within the council’s operations. 
  • An assessment of potential financial risks and how they are being mitigated, alongside long-term financial strategies and plans to prevent future declines in financial performance.
  • Information on any external support or audits the council is receiving or planning to ensure financial best practices, along with outcomes of recent audits and steps taken in response to audit recommendations, should be included.

 

The requested report should be presented at the next Council meeting for questions and discussion.

 

The low financial ranking has raised concerns among residents and councillors about the financial health of North Tyneside Council. This report will provide a clear understanding of the underlying issues, highlight the steps being taken to address them, and ensure that the Council is on a path to financial robustness and stability.

 

By approving this motion, North Tyneside Council demonstrates its commitment to transparency, financial responsibility, and the wellbeing of its residents. We must work collectively to address the challenges and reassure our community of our financial health and stability. 

 

An amendment was proposed by Councillor A McMullen and seconded by Councillor C Johnson:

 

To remove the phrase ‘with concern’ from the first paragraph.

To remove the second paragraph completely.

To add the following after the first paragraph

 

‘Council notes the conservative leader of Northumberland County council has recently said the OFLOG league table was fundamentally flawed and every political group at the Local Government Association recently criticised the methodology and the indicators used in the rankings.

 

Council notes the biggest factor in the financial sustainability of the council is the £470m we have had removed from our budget since 2013 by the previous Conservative Government.

 

Council notes the Mayor and Labour group have never hidden away from taking the difficult decisions to ensure the financial sustainability of the council, meanwhile the Conservative opposition have either not bothered to present a budget, presented budgets that would in the professional opinion of the then section 151 have brought the financial sustainability of the council into question.’

 

To remove ‘to prevent future declines in financial performance.’ from the third bullet point.

To amend the setting of the requested report to ‘Overview and Scrutiny meeting’ rather than ‘Council Meeting’.

To remove the second last paragraph completely.

 

The amended motion therefore read:

 

This Council notes the recent low ranking in the financial section of the Office for Local Government (Oflog) report, which placed North Tyneside at 302nd out of 317 councils in finance and 235th overall as reported in the Times on 30 April 2024. As representatives of our community, it is imperative that we ensure transparency and financial robustness to maintain the trust and confidence of our residents.

Council notes the conservative leader of Northumberland County council has recently said the OFLOG league table was fundamentally flawed, and every political Group at the Local Government Association recently criticised the methodology and the indicators used in the rankings.

Council notes the biggest factor in the financial sustainability of the council is the £470m pound we have had removed from our budget since 2013 from the previous Conservative Government.

Council notes the Mayor and Labour group have never hidden away from taking the difficult decisions to ensure the financial sustainability of the council, meanwhile the Conservative opposition have either not bothered to present a budget, presented budgets that would in the professional opinion of the then section 151 have brought the financial sustainability of the council into question.

 

Therefore, this Council resolves to request a report from the S.151 Officer addressing the following points:

• An analysis of the reasons behind North Tyneside’s low financial ranking in the recent Oflog report, including a comparison with similarly sized councils and identification of specific areas where our financial performance falls short. 

• An outline of the current measures in place to ensure the financial stability and sustainability of North Tyneside Council, as well as the steps being taken to improve financial management and efficiency within the council’s operations. 

• An assessment of potential financial risks and how they are being mitigated, alongside long-term financial strategies and plans.

• Information on any external support or audits the council is receiving or planning to ensure financial best practices, along with outcomes of recent audits and steps taken in response to audit recommendations, should be included.

The requested report should be presented at the next Overview and Scrutiny meeting for questions and discussion.

By approving this motion, North Tyneside Council demonstrates its commitment to transparency, financial responsibility, and the wellbeing of its residents. We must work collectively to address the challenges and reassure our community of our financial health and stability. 

 

Votes for the Amendment:

 

Councillors Linda Bell, Louise Bell, P Bunyan, B Burdis, B Clark, K Clark, S Cox, J Cruddas, E Darke, L Darke, J Day, D Drummond, P Earley, S Graham, C Gray, I Grayson, T Hallway, J Harrison, A Holdsworth, C Johnson, H Johnson, F Lott, W Lott, L Marshall, A McMullen, J Montague, J Mudzingwa, T Mulvenna, M Murphy, T Neira, A Newman, K Nott, P Oliver, R O’Keefe, J O'Shea, S Phillips, B Pickard, N Redfearn, W Samuel, J Sharp, J Shaw, A Spowart, M Thirlaway, J Walker, J Webster.

 

Votes against the Amendment:

 

Councillors J Bartoli, L Bartoli, L Bones, J Johnsson, D Lilly, I McAlpine, O Scargill, J Wallace.

 

The amendment was approved 46 votes to 8 votes.

 

Votes for the Substantive Motion

 

Councillors Linda Bell, Louise Bell, P Bunyan, B Burdis, B Clark, K Clark, S Cox, J Cruddas, E Darke, L Darke, J Day, D Drummond, P Earley, S Graham, C Gray, I Grayson, T Hallway, J Harrison, A Holdsworth, C Johnson, H Johnson, F Lott, W Lott, L Marshall, A McMullen, J Montague, J Mudzingwa, T Mulvenna, M Murphy, T Neira, A Newman, K Nott, P Oliver, R O’Keefe, J O'Shea, S Phillips, B Pickard, N Redfearn, W Samuel, J Sharp, J Shaw, A Spowart, M Thirlaway, J Walker, J Webster.

 

Votes against the Substantive Motion:

 

Councillors J Bartoli, L Bartoli, L Bones, J Johnsson, D Lilly, I McAlpine, O Scargill, J Wallace.

 

The Motion was approved by 46 votes to 8.