Purpose

To approve and recommend to
Council:
 
•          
The MTFS including the Revenue Budget and Capital
Programme.
•          
The MRP Policy.
•          
Treasury Management Strategy.
•          
Prudential Indicators.

Decision

Cabinet:
 
2.1 Cabinet delegated to the Cabinet Member
for Finance and Commissioning and the Director – Finance,
Regulation and Enforcement (Section 151) responsibility to update
the MTFS prior to Council to reflect any significant changes in the
Final Local Government Finance Settlement for 2026/27.
 
Cabinet recommended to Council for
approval:
 
2.2 The 2026/27 Revenue Budget of
£16,147,000, Council Tax Requirement of £8,502,000 and
a District Council proposed Band D Council Tax for 2026/27 of
£201.79 (an increase of £3.94 or 1.99%).
 
2.3 The MTFS 2025-30 Revenue Budgets and
25-year revenue financial planning model set out in APPENDIX A
including the approach to budget pressures, additional income,
specific grants and spend plans, potential forward funding of
capital projects, the pay award in 2026/27 and Treasury Management
income.
 
2.4 The MTFS 2025-30 Capital Strategy
including the 25-year capital investment model and the Capital
Programme shown in APPENDICES B & C including the recommended
approach to funding Business-asUsual
Capital Investment in 2029/30.
 
2.5 The Minimum Level of General Reserves
remaining at £2,000,000.
 
2.6 The updated Corporate Fees and Charge
Policy at APPENDIX E.
 
2.7 The Minimum Revenue Provision Statement
for 2026/27, at APPENDIX F, which sets out the Council’s
policy of using the asset life method for making prudent provision
for debt redemption.
 
2.8 Treasury Management Strategy Statement for
2026/27 at APPENDIX G.
 
2.9 The Investment Strategy Report at APPENDIX
H where no changes are recommended for 2026/27.
 
2.10 The Capital and Treasury Prudential
Indicators for 2025-30 in the financial implications section.
 
2.11 The Authorised Limit Prudential Indicator
shown within the financial implications section.
 
Cabinet noted:
 
2.12 The requirements and duties that the
Local Government Act 2003 places on the Authority on how it sets
and monitors its Budgets, including the CFO’s report on the
robustness of the Budget and adequacy of Reserves shown in APPENDIX
D.
 
2.13 The results of the Budget Consultation
summarised at APPENDIX I

Reasons for the decision

1.1 The ability to deliver the outcomes set
out in Lichfield District 2050 is in part dependent on the
resources available in the MTFS. The longer-term aspirations of
this strategy, however, are constrained by Local Government
Reorganisation due to be implemented from 1 April 2028 and guidance
from the Government on financial decisions in the interim.
 
1.2 The Council received a letter from the
Government outlining the approach to be taken on financial
decisions before Local Government Reorganisation is
implemented.
 
1.3 The MTFS was approved by Council on 25
February 2025, and this is refreshed each year to:

•      
Remove the previous financial year and in this MTFS this is
2024/25.

•      
Formally add the new financial year and in this MTFS this is
2029/30.

•      
Refresh and update assumptions to reflect the latest information
available.
 
1.4 The MTFS is the overall budget framework
and consists of the Revenue Budget, Capital Strategy and Capital
Programme, Earmarked Reserves and General Reserves.
 
1.5 There have been reports to Cabinet and
Council that have updated the MTFS since its initial approval.
 
1.6 The Treasury Management Strategy Statement
and Annual Investment Strategy are also important components of the
MTFS. These components, under the Constitution are the
responsibility of the Audit Committee and will be considered by
that Committee as part of the development of the MTFS
 
1.8 The level of uncertainty surrounding the
Local Government Finance regime has reduced significantly with the
publication of the Provisional Local Government Finance Settlement
covering the three-year period 2026/27 to 2028/29.
 
1.9 The Council has a statutory duty to
undertake budget consultation, set a balanced budget and to
calculate the level of Council Tax for its area

Alternative options considered

In the main, the options are focused on the
level of resource allocated to Strategic Priorities, the strategy
to be utilised to achieve a balanced budget and the level of
Council Tax increase.