Purpose

This report provides Members with an update on the Council’s Medium-Term Financial Strategy (MTFS). It takes account of the final local government financial settlement and the delivery of the council’s improvement plan. It sets out the current estimated journey to financial sustainability, the estimated total Capitalisation Direction the Council will require and the assumptions that underpin this.

Decision

Resolved –

(1)           That the updated Medium-Term Financial Strategy for 2026/27 to 2030/31, including the CD request for 2026/27 and the revised recovery period be approved;

(2)           That the savings target of £50m per annum from 2027/28 to 2028/29, currently estimated to reduce to £40m from 2029/30 be agreed;

(3)           That it be agreed to receive an updated MTFS in March 2026;

(4)           That the continued spending panel and related control processes be agreed for a further two years until the Council can evidence a sustainable financial position and a track record of robust governance by 2028/29; 

(5)           That the key assumptions under pinning the MTFS listed in paragraph 5.40 be noted;

(6)           That it be noted that without EFS which is subject to a review by CIPFA and agreement by MHCLG the Council would not be able to set a budget for 2026/27;

(7)           That the current position on the DSG, the likely Council forecast for this be noted and it be agreed that further work be undertaken.

To be actioned by: Interim Strategic Director of Corporate Resources / S151

Overview and Scrutiny Area: Corporate

(Steven Mair – 07786 525809)