Purpose

This report provides an update
in relation to the Council’s Medium Term Financial Strategy
(MTFS) for the General Fund for the four financial years 2026-30
including current assumptions about funding, potential growth
pressures and savings plans. Work will continue to refine the
modelling over the next three months and a final budget for 2026-27
will be presented to the Executive Mayor and Cabinet in February
2026 and Full Council in February/March 2026.

Content

For the reasons set out in the
report and its appendices, the Executive Mayor and Cabinet
AGREED:
 
2.1 To note the updated
financial forecast and medium-term financial strategy assumptions
set out in this report.
 
2.2 To note the dialogue with
Government, via the team of Commissioners appointed by Government,
to find solutions to restore financial and operational
sustainability for the Council. This fulfils the requirements of
the Statutory Recommendation raised by the External Auditor, Grant
Thornton, at Council on 22 October 2025.
 
2.3 To consider the outcome of
the review of the Council Tax Support scheme at paragraphs 5.63 to
5.72 of this report.
 
2.4 To approve the
recommendation to Full Council that the Council Tax Support scheme
is not changed from that agreed by Full Council resolution on 6
March 2024 and endorsed without change by Full Council resolution
on 26 February 2025.
 
2.5 To approve the
recommendation to Full Council to review the Council Tax Support
scheme during 2026-27.
 
2.6 To note the budget
timetable set out in Appendix E.
 
2.7 To note Croydon
Council’s response to the Government’s Fair Funding
Reform 2.0 consultation, attached as Appendix F.