Purpose

Cabinet is recommended to:

(1)        
Note the potential funding gap for the 3-year period 2025/26
to 2027/28, 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
December.

(2)        
Note 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, the
potential funding gap for 2025/26, 2026/27 and 2027/28.

(3)        
Note the MTFS refresh assumes a council tax
increase of 1.99% in 2025/26 which is subject to Council
approval.

(4)        
Note the continuing uncertainty around the future of Local
Government Funding resulting from the recent Change of Government
and past delays to the Fair Funding Review and proposed changes to
the Business Rates Retention scheme;

(5)        
Note the outline timetable for the budget process; and

(6)        
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 £18.058
million for the 3-year period 2025/26 to 2027/28 with £11.201
million in 2025/26, 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 December);

(2)         
noted the MTFS refresh assumes a council tax
increase of 4.99% for all 3 years which is subject to confirmation
of the referendum level and Council approval.  (If the council tax increase is at 1.99%, the gap
for the 3 years would be £23.860 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 £14.038 million, the potential funding gap of
£18.058 million to £23.860 million for the 3-year
period to 2027/28;

(4)         
noted the continuing uncertainty resulting from
likely delays to the spending review, Fair Funding Review and
proposed changes to the Business Rates Retention scheme;

(5)         
note the outline timetable for the budget process as
set out in paragraph 3.32 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.