Purpose

Hertsmere’s current Financial
Strategy was last approved by the full Council in July 2018
covering the period 2018/19 to 2021/22 (C/18/27). This strategy was
based on the then current economic conditions, government funding
and other pressures and influences that were likely to impact on
the Council’s finances at that time.

A revised draft Financial Strategy
was presented to the Cabinet in September 2025 for consideration
and the Cabinet recommended the draft Financial Strategy to the
Policy Review Committee for their review and comment.

The draft Financial Strategy was
presented to the Policy Review Committee at their meeting on 4
November 2025. The Committee raised a number of questions in
relation to homelessness, savings, reserves and contingency,
Council Tax, Hertsmere Developments Limited and the Fair Funding
Review. These were responded to by the Assistant Director –
Finance and are recorded in the draft printed minutes.

Subsequent to the Financial
Strategy being presented to the Policy Committee, the outcome of
the Fair Funding Review and the resulting multi-year provisional
finance settlement covering the spending review period 2025/26 to
2028/29 was announced on 17 December 2025.

The Fair Funding Review and
multi-year settlement are discussed in the Revenue Budget report
earlier on this agenda and the Financial Strategy has now been
further updated to reflect the latest funding position.
The Cabinet
considered the updated Financial Strategy 2026 on the 14 January
2026 to consider recommendation to the Full Council for
adoption. 
An update will be given at the meeting if
appropriate.

Content

Decision
 
RESOLVED that
Cabinet:
1.1) considered the Financial
Strategy 2026, attached as Appendix A, and recommended this
strategy to the Council for adoption.
1.2) noted that appendices 2
(Medium Term Financial Plan) and 3 (Capital Strategy) to Financial
Strategy 2026 will continue to be reviewed, updated and approved
annually as part of the revenue and capital budget setting
process.
 
Reasons for
decision
 
The Financial Strategy is an integral part of
and critical to the Council’s Corporate Governance and
Performance Framework, delivery of the Community Strategy and
Corporate Plan and the majority of the Council’s policies and
strategies.
 
The Strategy should be reviewed periodically
and updated as required to assist the Chief Finance Officer in
planning the Council’s financial resources in the short to
medium term (3 to 5 years) with a view to delivery of the
Council’s service priorities. It also sets out the framework
and principle on which the Council plans and manages its finances.
As such it forms an integral part of the Council’s Budget and
Policy framework.
 
Alternative Options
Considered
 
The Financial Strategy considers various
pressures, risks, uncertainties and influences that impact on the
Council’s finances and considers various options for the
Council to manage them.