Purpose

To
consider the Medium Term Financial (MTFP) and budget strategy.

Content

 

(a)          
That the updated cost pressures set out in the Cabinet
report of 11 November 2025 and the validation work that had been carried out on
them, be noted.

 

(b)          
That the assumptions being used in the
Medium-Term Financial Plan (MTFP) be agreed.

 

(c)          
That the financial gap arising from (b) and (c)
above be noted.

 

(d)          
That Cabinet agrees the 2026/27 principles for
budget setting outlined in section 13 of the report of 11 November 2025.

 

(e)          
That the approach to closing the budget gap set
out in the report of 11 November 2025 be noted, recognising that the work was
in progress.

 

(f)           
That Cabinet continues to lobby local MPs and
work with peers to press the case for additional, multi-year funding.

 

(g)          
That Cabinet Members work with officers to
continue to identify and develop further efficiencies and savings.

 

(h)          
That Cabinet endorse the next steps and
timetable leading up to the 2026/27 budget which will presented to full Council
on 10 February 2026.

Reason for the
decision

 

Local councils were
legally obligated to set a balanced annual budget, meaning that planned
expenditure must be matched by sustainable income sources. This excludes
reliance on one-off or short-term funding that cannot be maintained over time.

 

The report of 11
November 2025 was presented to Cabinet to provide an update on the projected
budget gap for 2026/27 and the subsequent years covered by the MTFP. It also
outlined progress made to date on identified actions and savings, including the
forecasted financial performance for 2025/26 against the approved budget.