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Cabinet received a report updating Members on
the General Fund Medium Term Financial Strategy (MTFS) which
provided a comprehensive overview of the financial
landscape and strategic planning for the Council.
 
The report highlighted the
significant changes and challenges faced by the Council, including
the impacts of Local Government Reform (LGR) and the upcoming Fair
Funding reforms.  Members were pleased
to note that the changes were projected to improve the Council's
funding position, allowing for better financial
resilience.
 
Officers advised that
although the
provisional settlement would not be known until mid-December, when
the Fair Funding reforms took effect, there would be the
opportunity to include some one off revenue or capital growth once
known, and future years savings targets were now projected to be
much lower than in recent years.
 
It was RESOLVED:
 

1.           
That the MTFS principles, as outlined in paragraph 3.10 be
re-approved.

2.           
That, for modelling purposes, Council tax increases be set at the
threshold assumed by the Government in the Fair Funding
consultation in order to support the resilience of the
Council’s finances as set out in paragraph 4.7.5.

3.           
That the updated inflation assumptions used in the MTFS as set out
in section 4.1 of the report be approved.

4.           
That the impact of Fair Funding grant funding as set out in the
report be noted, noting this could be subject to change following
consultation feedback.

5.           
That the approach to the ‘Balancing the Budget’ options
as set out in section 4.10 be approved.

6.           
That the Balancing the Budget options identified of £776K be
noted (excluding the Fees and Charges estimates including taxi
licence fees) to be presented to the October 2025 Cabinet and
General Purposes Committee.

7.           
That the Balancing the Budget target of £2.284Million, be
approved for the period 2026/27- 2029/30, as set out in section
4.10 of the report.

8.           
That the indicative General Fund borrowing costs for the Oval as
set out in of the paragraph 4.10.3 (3) be approved and included in
the MTFS.

9.           
That the additional funding to be set aside in an earmarked reserve
for the Council’s Queensway LLP of a further £50K per
year, (paragraph 4.10.3 (6)) be approved.

10.        
That the set aside of £150K per year to support the
Council’s apprentice programme as set out in paragraph 4.10.3
(2) be approved.

11.        
That the General Fund growth allowance of £75K be noted and
approved for the use of the Council’s FTFC priorities.

12.        
That a minimum level of balances for the General Fund of
£3.57million be approved for 2026/27 as set out in paragraph
4.11.7.

13.        
The MTFS be regularly reviewed and revised to reflect any material
financial pressures, so forecasts are updated and re-presented to
the Cabinet for approval.

14.        
That the Trade Unions and staff be consulted on the key messages
contained within the MTFS and more specifically when drawing up any
proposals where there is a risk of redundancy.