Purpose

The Council has been aware for some months
that in 2026/27 a significant Budget shortfall in the General Fund
was likely to occur.  In order to
prepare for this the Council has undertaken the following
initiatives in order (a) to prepare the grounds for the budget
setting process and (b) to assure that high quality information
would be available to Cabinet in making decisions in relation to
the Budget for that year.
 

A process of rigorous financial
planning has been designed and rolled out across the organisation
with all services being consulted on the budget pressures that may
apply in 2026/27 and the years following and also to identify cost
reductions that could be selected for adoption in bridging the
budget shortfall.

 

An Efficiency Review (see elsewhere
on this agenda) which has sought to identify opportunities to
identify major savings. To date savings opportunities to the value
of £6.657m have been identified for 2026/27 with further
savings in subsequent years.  A full
schedule of these opportunities appears at Appendix 'B'.

 

A wider review of savings
opportunities across the Council which have resulted in a portfolio
to the value of £16.599m for 2026/27 with further savings in
subsequent years. A full schedule of these opportunities appears at
Appendix 'B' to this report.

 
The overall value of the savings opportunities
which have been identified for 2026/27 is £23.256m with
further savings thereafter - the greater part being recurring
savings rather than one off savings. 
This is highly beneficial to the Council.
 
The report sets out contextual information
regarding the background to the setting of the Budget and sets out
the timetable that will apply in order to see the Budget balanced
as is required by law early in February 2026.
 
This report sets out the latest assessment of
the expected budget shortfall, proposes that consultation should
begin on the portfolio of savings identified so far and refers to
the resultant (modified) budget shortfall to the Budget and Finance
Scrutiny meeting scheduled for 21 January 2026.  That Scrutiny committee will receive a full set of
budget papers ('the Draft Budget') together will a full set of
proposed savings to balance the Budget shortfall as it is then
understood after the receipt of the Provisional Finance Settlement
in late December 2025.
 
This report does not cover the preparation of
the Draft Capital Programme for 2026/27 which will be presented as
part of the Draft Budget 2026/27 and supporting papers (including
the Medium-Term Financial Strategy) prepared after receipt of the
Provisional Settlement in January 2026.

Content

The Cabinet approved the recommendation(s) as
set out in the report.