Purpose

Part A - The purpose of this report is to
outline the outcomes of the summer review of the Council’s
Medium Term Financial Plan (MTFP) 2025/26 to 2029/30.The report
revisits the assumptions and forecasts underpinning the MTFP, and
looks at any changes in national economic conditions, interest
rates and increasing demand for services, to ensure they continue
to be based on the latest available information.

Content

The Cabinet has
considered the outcomes of the review of the council’s Medium
Term Financial Plan (MTFP) update 2025/26 to 2029/30 which
highlights the continuing financial challenges as a result of
significant budget pressures due to inflationary costs and
increasing need for services, and the adjustments needed to the
approved MTFP forecasts and assumptions in order to present the
most accurate forecast of the council’s financial position
and saving requirement over the medium-term period.
 
The Cabinet has
then:-
 
(1) Noted the outcomes
of the MTFP update and the highlighted changes to the MTFP
forecasts and assumptions approved in February.
 
(2) Approved the
forecast and assumption adjustments as a result of the MTFP updates
outlined in the report.
 
(3) Noted that the
council’s savings requirement has decreased to £19.162m
in 2026/27 rising to £63.222m in 2029/30 as a result of the
adjustments subject to further review and updates during the
financial year.
 
(4) Noted that due to
the significant demand, volatility, and risk of the financial
landscape the assessment of the MTFP forecasts and assumptions will
continue to be iterative with further updates to the MTFP reported
to Cabinet as part of the 2026/27 budget setting process.
 
(5) Approved the
recommended use of one-off resources identified during the
financial year to support the council’s in-year financial
position, the 2026/27 Budget and MTFP.

Alternative options considered

None.