Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: September 9, 2025

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.