Purpose

To update Cabinet on the budget gap for the forthcoming year 2027/28 and the MTFP which includes consideration of the financial position and requisite savings targets. To outline the Budget Strategy approach as well as outlining considerations to be given with respect to income and the Budget Timetable Framework.

Decision

RESOLVED: that

1. the budget principles be agreed as set out in the report, on which the Budget Strategy will be based and the approach to meeting the Budget Reduction Requirement both in 2027/28 and across the period of the Medium-Term Financial Plan.
2. It be agreed that Directorates work with the relevant Portfolio Cabinet Member(s), in consultation with the Section 151 Officer and Cabinet Member for Finance, Modernisation and Performance to identify potential savings to assist in addressing the indicative budget gap of £45.0 million for 2027/28 and £163.7 million across the period of the Medium-Term Financial Plan.
3. Authority be delegated to the Chief Executive, in consultation with the Leader and Cabinet Member for Finance, Modernisation and Performance, to implement any saving proposal in advance of 2027/28 where no policy recommendation is required or where a policy decision has already been taken.
4. It be noted that work will continue to update and refresh the MTFP and that this will be reported to Members as appropriate.
5. It be agreed that consultation on the 2027/28 budget proposals will take place when the detail of options is available in order to inform the preparation of the draft 2027/28 Budget.
6. It be proposed that Council agree that the Budget Timetable Framework set out in Appendix 2 be adopted, and that the work outlined is progressed with a view to informing budget preparation.
7. It be proposed that Council note the pressures and timescales associated with the recommissioning of Care Home Placements for Older People as set out at paragraph 39-41 and agree to the inclusion within the Council’s Budget of the estimated additional costs of up to a maximum of £4.0 million in 2027/28 (being the impact of estimated framework rates plus inflation), and £0.200 million in 2028/29. Funding must be addressed as part of the Council’s overall Budget Strategy and will include finalisation by the commissioning directorate of phased implementation arrangements.