The Economy and Assets Policy Development Group met to discuss the Medium Term Financial Plan, receive an update from the Economic Development Team, and get the latest information on the proposed Cullompton Railway Station. The group reviewed the updated Medium Term Financial Plan (MTFP) for 2026/27 to 2028/29 and considered potential cost savings and income opportunities.

Medium Term Financial Plan

The group reviewed the updated Medium Term Financial Plan (MTFP) for the period covering 2026/27 to 2028/29. The MTFP outlines the council's strategic financial management plan to support the delivery of its priorities, as detailed in the Corporate Plan 2024–2028. The MTFP helps strategically plan the budget setting process, and gives an overview of future budget gaps so strategic decisions can be made over levels of future spending, council tax levels, policies for fees and charges, and asset investment or disposal.

The report highlighted significant financial uncertainty for the council, particularly in 2026/27, due to the government's planned changes to local authority funding mechanisms.

The 5-year timeframe usually covered by the MTFP is not applicable due the Government's previous announcement of Local Government Reorganisation (LGR) for authorities within Devon. The current expected date for commencement of the new entity, in whatever form, is April 2028. However, to show a meaningful MTFP period, we have continued financial estimations through to 2028/29.

The main areas of change are:

• Core Government Funding: The Fair Funding Review 2.0 is replacing the existing funding distribution formulas.
• Business Rates: Changes include revaluation of local business properties, introduction of five new multipliers, and removal/reduction in the application of reliefs.
• Council Tax: While the scheme itself remains unchanged, government proposals to extend the timeframe before a council can enforce debt collection may reduce the council's funding.
• Extended Producer Responsibility (EPR): Government have indicated that similar levels of funding should be available in future years, albeit that as producers reduce the volume of packaging, the grant received will fall.
• Food Waste: There is potential funding available to help meet the cost of weekly food collection from 2026/27.

The report presented three potential scenarios based on possible outcomes from the Fair Funding Review 2.0, indicating a forecast shortfall for 2026/27 ranging from £900,000 to £3,300,000.

The group considered a list of potential savings relating to the Economy and Assets Policy Development Group, as detailed in Appendix 3 - GF Savings Economy Assets.

Economic Development Team Update

The Director of Place, Richard Marsh, provided an update on the activities of the Growth, Economy and Delivery Team since the last meeting.

Key discussion points included:

• Shared Prosperity Fund (SPF) and Rural England Prosperity Fund (REPF) 25/26: Delivery of SPF/REPF funded projects for 2025/26 is underway. Devon County Council is delivering three revenue projects as part of the UKSPF programme: Employment Skills support, Business Support (Prosper), and Agri Support.
• MDDC Delivery: Expressions of interest were sought for two grant schemes: Community Commercial Hubs and Improving Visitor Economy Assets. A Business Refresh Grant scheme has also been launched, offering capital grants up to £2,500 to help existing businesses refresh their look.
• Visit Mid Devon: The Economic Development team continues to support local tourism through information, signposting, and digital content efforts.
• Love Your Local Market Campaign: The Love Your Local Market 2025 campaign was a success, celebrating town markets, farmers' markets, and pop-up markets.
• Town Centre Health: Quarter 2 shopfront surveys took place in July 2025. Tiverton, Cullompton and Crediton have all seen an improvement on the last quarter. >All our three main towns have seen an improvement on the last quarter. The national shopfront vacancy average is currently 13.9%. All our towns are performing better this, with the exception of Cullompton which is marginally above the national average. Cullompton however has improved during the course of the last year.
• The Creative Communities Grant Scheme: The first round of applications awarded this financial year has supported a range of projects. Round 2 will open 1 September 2025.
• Mid Devon Business Network: The Economic Development team attended a newly formed networking group in the Culm Valley.
• Economic Strategy Review: Officers are preparing a draft document, and will be liaising with County colleagues and the Combined Council Authority team to inform the Strategy's development.

Cullompton Railway Station

The group received a verbal update on the proposed Cullompton Railway Station.