Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: September 9, 2025

Purpose: Cabinet is recommended to:   (1)  Note the potential funding gap and that due to the current financial uncertainty, the MTFS will be regularly reviewed and reported on later in the year when further funding announcements are made. (2)  Note the continuing uncertainty resulting from the proposed changes to Local Government funding and reforms to the Business Rates Retention scheme. (3)  Note the outline timetable for the budget process. (4)  Delegate to the Strategic Director of Resources the authority to distribute any contingency budgets and/or reserves as per the Council’s financial ground rules.  

Content: Cabinet:   (1)            noted the potential funding gap of £15.331 million for the 3-year period 2026/27 to 2028/29 with £12.504 million in 2026/27, assuming all service-related pressures are resolved. The final position will not be known until the provisional local government finance settlement and final settlement are released.  The provision settlement is expected in late November.   (2)            noted the MTFS refresh assumes a council tax increase of 4.99% for all 3 years which is subject to Council approval.  If the council tax increase is at 1.99%, the gap for the 3 years would be £29.807 million;   (3)            noted the requirement to achieve savings from management actions, efficiencies and a transformation programme, to mitigate the in-year baseline pressure reported in the month 3 monitor of £31.412 million, the potential funding gap of £15.331million for the 3-year period to 2028/29;   (4)            noted the continuing uncertainty resulting from the implementation of the Fair Funding Review and the proposed reset of Business Rates; and   (5)            noted the outline timetable for the budget process as set out in paragraph 3.46 of the report; and   (6)            delegated, to the Strategic Director of Resources, the authority to distribute any contingency budgets and/or reserves as per the Council’s financial ground rules.   Options & Alternatives Considered Much of this report is concerned with provision of information, for which alternative options is not a relevant consideration.