Decision details

The Cabinet had before it a report * from the Deputy Chief Executive (S151) presenting the 2025/2026 draft Budget Report.

The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:

• At the last Cabinet meeting, the projected shortfall stood at £431k. Since then, a thorough review had shown that some previously identified savings were not achievable for 2025/26 and would need to be revisited in future years. However, the Council had been able to reduce other pressures and identify additional savings, bringing the shortfall down to £191k.
• Appendix 1 provided a detailed breakdown of movements at the service unit level, highlighting where pressures were being felt and where savings had been achieved. A full review of corporate budgets, combined with the possibility of further government grants, could help bridge the remaining gap.
• The Council were deeply disappointed by the government’s decision to remove the Rural Services Delivery Grant. This, along with the uncertainty of the funding settlement, expected on 19 December 2024; this was unacceptably late in the budget-setting cycle, and had created significant challenges for financial planning.
• As a Council, strong representations would be made directly to central government at a senior officer level and through the membership of the Rural Services Network, urging them to address the dire state of local authority funding.
• Appendix 2 outlined the plans for the Capital Programme over the next 5 years. The commitment to invest £138m into maintaining and enhancing assets. A large portion of this would be directed towards increasing housing stock, delivering much needed social and affordable homes. Whilst this programme currently assumed significant borrowing, the Council remained optimistic that further successful grant applications would help reduce this burden, as they had done in the past.
• Housing Revenue Account, Appendix 3 provided an update on the Medium-Term Financial Plan. This included refreshed assumptions around income, particularly in relation to rent corrections. The Council were in the process of finalising a robust 30-year plan to enable more accurate budget profiling over the next 5 years and to identify ways to address the projected shortfall.
• This administration stood firm in its pledge to uphold fiscal responsibility whilst listening to the needs of the communities. The combined efforts of dedicated officers, alongside the support of Members across the Council, had made it possible to present a realistic and achievable draft budget, even in the face of uncertainty and challenging financial conditions.

Discussion took place regarding the internal borrowing and where this was reported.

RESOLVED that:

1. The contents of this report, specifically the inclusion in the 2025/26 adjustments be APPROVED and

a)    Cabinet requests were considered at the last meeting (para 3.4);

b)    The adjustments to previously AGREED budget options (para 4.2);

c)    The proposed budget options (Section 5) that would be calculated as data or when Government announcements were made.

2. The proposed Capital Programme covering the period

     2025/26 to 2029/30 be considered.

3. The updated Housing Revenue Account Medium Term Financial Position be considered.

(Proposed by Cllr J Buczkowski and seconded by Cllr S Clist)

Reason for Decision:

None directly arising from this report, although there was a legal obligation to balance the budget. There were legal implications arising from any future consequential decisions to change service provision, but those would be assessed at the time.

Note: * Report previously circulated.