The Tees Valley Combined Authority has approved a £308m budget for 2025/26, focusing on transport, education, and business growth investments.
Tees Valley: The Tees Valley Combined Authority Cabinet has approved the budget for 2025/26. They will allocate £308 million in funding.
Out of this, £307.96 million is set for the next financial year. About £70 million will come from borrowing. The biggest investment is in transport, with £133 million planned. Education, employment, and skills will receive nearly £40 million.
Additionally, £21.7 million is earmarked for business growth. More funding has been added to the Tees Valley since the initial documents were created.
Gary Macdonald, the Group Director of Finance and Resources, spoke at the meeting on January 31. He mentioned that they consulted with the Overview and Scrutiny Committee and the public for feedback.
Councillor Alec Brown, the Labour leader in Redcar and Cleveland, raised concerns about the dip in reserves. Mr. Macdonald explained that earmarked reserves are for long-term projects, while general reserves relate to the core budget.
He assured that they monitor reserves closely. If new allocations arise, they will recommend adjustments to maintain a healthy reserve level.
The medium-term financial plan runs until March 2029. It includes plans to use £145 million of usable reserves, with nearly £63 million in 2025/26.
Cllr Brown asked if reserves could become a concern. Mr. Macdonald said they would be worried if general reserves fell too low. However, funding agreements protect against project cost overruns.
The general reserve currently stands at £1.058 million, as noted in the meeting agenda.
Cllr Brown also pointed out that there’s no planned expenditure for culture and tourism in 2027/28. He mentioned people in Skinningrove want continued funding. In 2024/25, over £18 million was spent on culture and tourism.
Mr. Macdonald expressed hope for new funding proposals before 2027/28.
Tees Valley Conservative Mayor Ben Houchen said they expect clearer funding details after the Spending Review. He noted that one-year settlements are not very helpful for local government.
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