Purpose

Cabinet is recommended to:
 

(1) 
Note the potential funding gap and that due to the current
financial uncertainty, the MTFS will be regularly reviewed and
reported on later in the year when further funding announcements
are made.

(2) 
Note the continuing uncertainty resulting from the proposed changes
to Local Government funding and reforms to the Business Rates
Retention scheme.

(3) 
Note the outline timetable for the budget process.

(4) 
Delegate to the Strategic Director of Resources the authority to
distribute any contingency budgets and/or reserves as per the
Council’s financial ground rules.
 

Content

Cabinet:
 
(1)           
noted the potential funding gap of £15.331
million for the 3-year period 2026/27 to 2028/29 with £12.504
million in 2026/27, assuming all service-related pressures are
resolved. The final position will not be known until the
provisional local government finance settlement and final
settlement are released.  The provision
settlement is expected in late November.

 
(2)           
noted the MTFS refresh assumes a council tax
increase of 4.99% for all 3 years which is subject to Council
approval.  If the council tax increase
is at 1.99%, the gap for the 3 years would be £29.807
million;
 
(3)           
noted the requirement to achieve savings from
management actions, efficiencies and a transformation programme, to
mitigate the in-year baseline pressure reported in the month 3
monitor of £31.412 million, the potential funding gap of
£15.331million for the 3-year period to 2028/29;
 
(4)           
noted the continuing uncertainty resulting from the
implementation of the Fair Funding Review and the proposed reset of
Business Rates; and
 
(5)           
noted the outline timetable for the budget process
as set out in paragraph 3.46 of the report; and
 
(6)           
delegated, to the Strategic Director of Resources,
the authority to distribute any contingency budgets and/or reserves
as per the Council’s financial ground rules.
 

Options & Alternatives Considered

Much of this report is concerned with provision of
information, for which alternative options is not a relevant
consideration.