Purpose

This report seeks agreement on the Budget
assumptions and budget setting process for 2026/27

Content

That Cabinet:

 

1)          
Note the planning assumption of a Council Tax
increase of 2.99% over the 4-year Medium-Term Financial Plan period
and an Adult Social Care Precept of 2.00% or the equivalent in
grant funding in 2026/27.

 

2)          
Note the funding assumptions and net expenditure
projections for 2026/27 including a projected budget shortfall of
£39.765 million.

 

3)          
Note the Medium-Term financial projections for
2026/27 to 2029/30 and the predicted budget gaps totalling over
£95 million over the period.

 

4)          
Agree the proposed budget development approach and
that members will use this to develop 4-year medium-term service
and financial plans and proposals for Budget Council consideration,
including savings targets, to enable a legally balanced budget in
2026/27 and enable the Council Tax for the year to be
set.

 

5)          
Note that projections for next year and the
Medium-Term Financial Plan (MTFP) will be updated following
government funding announcements expected in Autumn
2025.