Decision

Purpose of report 

Under the Council’s Financial Regulations, the Responsible Financial Officer (Section 151 Officer) is required to report on the Council’s medium-term financial prospects. Cabinet is asked to recommend that Full Council approve the Medium-Term Financial Strategy (MTFS) for the period 2026/27 to 2030/31.

The MTFS reflects the latest funding assumptions and financial projections and sets out the forecast budget gap for each year of the planning period. While the Strategy identifies the scale of the financial challenge facing the Council, it does not set out detailed plans to close the forecast funding gap beyond 2026/27. Proposals to address the projected shortfall for 2027/28 and subsequent years will be developed through the annual budget-setting process and incorporated within the revised Medium Term Financial Plan (MTFP), which will be presented alongside the 2027/28 budget for Council approval in February 2027.

Decision 

Cabinet recommends that Full Council approve the Medium-Term Financial Strategy (MTFS) 2026/27 to 2030/31.

Reasons for decision 

The MTFS is a key component of the Council’s financial planning and budget-setting framework. It provides the strategic context for managing the Council’s resources over the medium term, supports informed decision-making, and helps ensure the long-term financial sustainability of the Council.

Alternative options considered and rejected 

No alternative option has been considered. This report provides the required update to the Council’s Medium-Term Financial Plan (MTFP) approved in February 2026. It outlines the key financial assumptions, risks and funding pressures that will inform the development of the 2027/28 budget and the next iteration of the MTFP. The Council’s Financial Regulations require the Responsible Financial Officer (Section 151 Officer) to report regularly on the Council’s financial position and medium-term financial outlook. As a result, there is no alternative option to producing and presenting this Strategy.

Declarations of interest 

None declared in respect of this item.