Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: November 5, 2024

Purpose: Cabinet is recommended to: (1)         Note the potential funding gap for the 3-year period 2025/26 to 2027/28, 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 December. (2)         Note 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, the potential funding gap for 2025/26, 2026/27 and 2027/28. (3)         Note the MTFS refresh assumes a council tax increase of 1.99% in 2025/26 which is subject to Council approval. (4)         Note the continuing uncertainty around the future of Local Government Funding resulting from the recent Change of Government and past delays to the Fair Funding Review and proposed changes to the Business Rates Retention scheme; (5)         Note the outline timetable for the budget process; and (6)         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 £18.058 million for the 3-year period 2025/26 to 2027/28 with £11.201 million in 2025/26, 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 December); (2)          noted the MTFS refresh assumes a council tax increase of 4.99% for all 3 years which is subject to confirmation of the referendum level and Council approval.  (If the council tax increase is at 1.99%, the gap for the 3 years would be £23.860 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 £14.038 million, the potential funding gap of £18.058 million to £23.860 million for the 3-year period to 2027/28; (4)          noted the continuing uncertainty resulting from likely delays to the spending review, Fair Funding Review and proposed changes to the Business Rates Retention scheme; (5)          note the outline timetable for the budget process as set out in paragraph 3.32 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.