Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: July 17, 2025

Purpose: This report seeks agreement on the Budget assumptions and budget setting process for 2026/27

Content: That Cabinet:   1)           Note the planning assumption of a Council Tax increase of 2.99% over the 4-year Medium-Term Financial Plan period and an Adult Social Care Precept of 2.00% or the equivalent in grant funding in 2026/27.   2)           Note the funding assumptions and net expenditure projections for 2026/27 including a projected budget shortfall of £39.765 million.   3)           Note the Medium-Term financial projections for 2026/27 to 2029/30 and the predicted budget gaps totalling over £95 million over the period.   4)           Agree the proposed budget development approach and that members will use this to develop 4-year medium-term service and financial plans and proposals for Budget Council consideration, including savings targets, to enable a legally balanced budget in 2026/27 and enable the Council Tax for the year to be set.   5)           Note that projections for next year and the Medium-Term Financial Plan (MTFP) will be updated following government funding announcements expected in Autumn 2025.