Purpose

To consider the
financial planning framework for consideration of forthcoming
budget proposals and plans, informed by updated forward spend and
funding forecasts.

Content

RESOLVED – That the following
recommendations be approved and that the report be submitted to the
meeting of Council on 17 September 2025;
 

1)   
That the key risks to the delivery of the budget in 2025/26
outlined in the Quarter 1 Financial Monitoring report be noted, and
that they be subject to consideration as part of the Budget
Monitoring reports submitted to the Cabinet on a quarterly
basis; 

2)   
That the uncertainty as to the precise level of future funding for
the Council and the assumptions around the potential impact of Fair
Funding Review 2.0 be noted.

3)   
That the update and the revised budget gap to the MTFS for the
period 2026/27 to 2030/3, as shown at Appendix A, be noted and
that, in view of the uncertainty with some of the assumptions upon
which the Strategy is based, it will remain under review as the
Council’s budget process progresses.

4)   
That it be noted that there is a significant gap of c£18m in
2026/27 which requires either reduction in budget pressures and/or
new savings proposals to be brought forward. 

5)   
That the scenario analysis (Appendix C) which models
‘worst’/’best’ case scenarios around the
baseline MTFS as part of the assessment of potential risks facing
the Council be noted.

6)   
That the current Capital Plan (Appendix D) reflecting updated
General Fund funding assumptions prior to the completion of the
Capital plan review and a revised HRA Capital Plan with updated
funding be noted.

7)   
That the Medium Term Financial Strategy be agreed.  

8)   
That in consultation with relevant Cabinet Members, Officers be
requested to identity and bring forward budget savings proposals as
part of the provisional budget report which will be initially
considered by Cabinet in December 2025 and then a final budget
report be presented for approval by Cabinet/Council as part of the
development of the final budget for 2026/27 in February 2026;
(subject to consultation as set out (11) below).

9)   
That it be noted that funding assumptions made in this report may
be subject to change when the provisional local government finance
settlement is published by Government.

10)That the timetable
set out at Appendix E for the development of the Council’s
Budget for 2026/27 be noted.

11) That the proposal to undertake consultation on the
budget proposals in late 2025 with a view to informing decisions on
the Council’s budget for 2026/27 be noted. 

12) That subject to the continuation of the Business
Rates Pooling arrangements, authority be delegated to the Chief
Executive and the Service Director (Finance), in consultation with
the Leader and the Cabinet Member for Finance and Regeneration, to
determine whether the Council should continue as a member of the
Leeds City Region Business Rates Pool in 2026/27.