Purpose

This report presents
an updated Medium Term Financial Strategy (MTFS) for the period
2026/27 to 2029/30 as part of the annual reporting on the Policy
and Budget Framework required under the Local Government
Act  2000 and provides detail to inform
Council in setting Council Tax for 2026/27.
 

Decision

 
Cabinet note:
 
1)     
The revised Medium Term Financial Strategy 2026/27 to 2029/30 as
detailed in Appendix 1 of the report.

 
2)     
The aims and objectives of the Medium Term Financial Strategy which
will be presented to Council for approval on 26 February 2026.
 
3)     
The formal budget public consultation began on 12 November 2025 and
ended on 4 January 2026. Following the consultation, there are no
changes to the budget proposals and the outcome of the consultation
is summarised in section 19 and Appendix 6 of the report.
 
4)     
The budget proposals are based on the assumptions detailed within
the Medium Term Financial Strategy.
 
5)     
That the proposals provide for a balanced budget in 2026/27,
2027/28 and 2028/29, and further proposals will need to be
considered to address the future year budget gap in 2029/30.
 
6)     
That the Financial Policies have been reviewed and are detailed in
Appendix 4 of the report.
 
Cabinet Recommends Council:
 
To note:
 
7)     
The S151 Officer’s (Chief Finance Officer) statutory report
regarding the robustness of the estimates and adequacy of reserves
detailed in section 11 of the report.

 
8)     
That the Chief Finance Officer (S151 Officer) on the 5 January 2026
calculated the Council Tax base for the whole Council area at
70,432.5 Band D equivalents and for dwellings in those parts of its
area to which a parish precept relates as per Appendix 2 of the
report.
 
9)     
The county, police and fire authority precepts detailed in Appendix
3 of the report.
 
10) 
That as the billing authority, the Council has not been notified by
any major precepting authority that its relevant basic amount of
Council Tax for 2026/27 is excessive and the billing authority is
therefore not required to hold a referendum, in accordance with
section 52ZK of the Local Government Finance Act 1992.
 
11) 
The risks and sensitivities within the financial forecasts
highlighted in section 9 and in Appendix 5 of the report.
 
To determine:
 
12) 
That for the purposes of section 35 (2) (d) of the Local Government
Finance Act 1992, any expenses incurred by the Borough Council in
the financial year 2026/27 in performing functions in a part of the
district which elsewhere in the district are performed by a Parish
Council, shall not be special expenses of the Borough Council.

 
13) 
That its relevant basic amount of Council Tax for 2026/27
(£151.42 at Band D) reflects a £5.00 (3.41%) increase
which is not excessive in accordance with principles approved under
Section 52ZB of the Local Government Finance Act 1992.
 
To approve:
 
14) 
The net Council Tax requirement of £10.66M for 2026/27, the
revenue estimates including the budget proposals and contributions
to and from reserves summarised in sections 6 and 7 of the
report.

 
15) 
The Medium Term Financial Strategy, as shown in Appendix 1 of the
report.
 
16) 
The financial policies set out in Appendix 4 of the report.
 
17) 
The updated Financial Regulations as detailed in Appendix 7 of the
report for inclusion in the council’s constitution.
 
18) 
That the requirement for Council Tax for Borough purposes for
2026/07 be £151.42 (at Band D) as set out in Appendix 3 of
the report.
 
19) 
The Council Tax Resolution as set out in Appendix 3 of the report,
which brings together the Borough’s Council Tax Requirement
and that of the other major preceptors (Hampshire County Council,
Hampshire Fire and Rescue and The Police and Crime Commissioner for
Hampshire) and sets the Council Tax charges for 2026/27.
 
20) 
That the S151 Officer (Chief Finance Officer) be given delegated
authority to implement any variation necessary to the overall level
of 2026/27 Council Taxes in the event that any of the precepting
authorities change their precept calculation from that expected and
reported at the Council meeting.