Issue - meetings

To receive a report from the Deputy Chief Executive (S151) Officer on the updated Medium Term Financial Plan (MTFP) which covers the period 2026/27 to 2028/29 and takes account of the Council’s key strategies (i.e. the Corporate Plan, Business Plans, Treasury Management Plan, Asset Management Plan, Work Force Plan and Capital Strategy) and demonstrates it has the financial resources to deliver the Corporate Plan.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer and the Head of Finance, Property and Climate Resilience on the Medium Term Financial Plan (MTFP).

RESOLVED that:

1.    The updated MTFPs for the General Fund covering the years 2026/27 to 2028/29 be NOTED;

2.    The principles set out in Section 4 be applied where possible and the approach to balancing the General Fund Revenue Budget outlined in paragraph 7.2 be APPROVED.

3.    Recommendations be presented to the Policy Development Groups on the Budget Proposals identified by senior managers and that their views be garnered on where savings should be sought and to what level. 

The Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer and the Head of Finance, Property and Climate Resilience on the Medium Term Financial Plan (MTFP).

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

• The Medium Term Financial Plan (MTFP) for the General Fund and Housing Revenue Account. The report was a little different to that provided in previous years, due to the raft of changes expected from 2026/27 and the longer term restrictions placed upon this Council by Local Government Reorganisation (LGR).
• The report did not give a forecast shortfall to be addressed. Instead it highlighted the unprecedented level of uncertainty faced by all councils in respect of funding from 2026/27 onwards and estimated a range that the shortfall could fall within.
• It was extremely unlikely that this position would gain any clarity until the late autumn, starting with headline information within the Chancellor’s Autumn Statement (expected late October 2025), culminating in indicative funding allocations at an authority level within the financial settlement (expected earlier than normal in November 2025).
• There was so much uncertainty until later in the autumn, the focus remained on the delivery of high quality services and was continuing with the budget process and savings options and that would be considered by the next round of Policy Development Groups (PDGs) meetings in anticipation of the funding announcements.
• When further information was received an update would be provided on the position and the approach to setting the budget in February 2026.

The Deputy Chief Executive (S151) Officer highlighted the following: 

• Due to this Council’s reasonably high levels of business rate growth over the last decade and levels of reserves, the Council would be targeted for more significant funding reductions moving forward.
• The Government were planning changes to all councils' major funding streams, it was planning revisions to Council Tax collection methods and major changes to Business Rates.
• There were also significant changes to the funding of refuse and recycling and there were relatively smaller changes to other areas of the Council.
• A detailed response had been provided to the Government consultation on the funding changes and the impact they would have on this Council.
• This Council would continue to deliver high quality business and usual services over the coming years as the move towards Local Government Reorganisation (LGR) continued.

Discussion took place with regard to:

• Clarification around the weekly food collection scheme and the funding in the future, as this Council was already delivering this scheme, they were not eligible, had the position changed to provide all councils with funding? It was confirmed that there would be a financial contribution to all councils to the running costs, but further details are not yet known.
• The Leader would write to the three local MP’s over the funding settlement and the detrimental negative impact on the financial position.

RESOLVED that:

1. The updated MTFPs for the General Fund covering the years 2026/27  ...  view the full minutes text for item 39