Decision Maker: Policy Review Committee, Cabinet, Council

Outcome: Recommendations approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: January 14, 2026

Purpose: Hertsmere’s current Financial Strategy was last approved by the full Council in July 2018 covering the period 2018/19 to 2021/22 (C/18/27). This strategy was based on the then current economic conditions, government funding and other pressures and influences that were likely to impact on the Council’s finances at that time. A revised draft Financial Strategy was presented to the Cabinet in September 2025 for consideration and the Cabinet recommended the draft Financial Strategy to the Policy Review Committee for their review and comment. The draft Financial Strategy was presented to the Policy Review Committee at their meeting on 4 November 2025. The Committee raised a number of questions in relation to homelessness, savings, reserves and contingency, Council Tax, Hertsmere Developments Limited and the Fair Funding Review. These were responded to by the Assistant Director – Finance and are recorded in the draft printed minutes. Subsequent to the Financial Strategy being presented to the Policy Committee, the outcome of the Fair Funding Review and the resulting multi-year provisional finance settlement covering the spending review period 2025/26 to 2028/29 was announced on 17 December 2025. The Fair Funding Review and multi-year settlement are discussed in the Revenue Budget report earlier on this agenda and the Financial Strategy has now been further updated to reflect the latest funding position. The Cabinet considered the updated Financial Strategy 2026 on the 14 January 2026 to consider recommendation to the Full Council for adoption.  An update will be given at the meeting if appropriate.

Content: Decision   RESOLVED that Cabinet: 1.1) considered the Financial Strategy 2026, attached as Appendix A, and recommended this strategy to the Council for adoption. 1.2) noted that appendices 2 (Medium Term Financial Plan) and 3 (Capital Strategy) to Financial Strategy 2026 will continue to be reviewed, updated and approved annually as part of the revenue and capital budget setting process.   Reasons for decision   The Financial Strategy is an integral part of and critical to the Council’s Corporate Governance and Performance Framework, delivery of the Community Strategy and Corporate Plan and the majority of the Council’s policies and strategies.   The Strategy should be reviewed periodically and updated as required to assist the Chief Finance Officer in planning the Council’s financial resources in the short to medium term (3 to 5 years) with a view to delivery of the Council’s service priorities. It also sets out the framework and principle on which the Council plans and manages its finances. As such it forms an integral part of the Council’s Budget and Policy framework.   Alternative Options Considered   The Financial Strategy considers various pressures, risks, uncertainties and influences that impact on the Council’s finances and considers various options for the Council to manage them.