Agenda item

To consider the update report on the development of the Medium Term Financial Strategy 2026 to 2030.

The committee considered the report which updated on the development of the Medium-Term Financial Strategy (MTFS) 2026-2030 which had been further informed by Members of the Sub Committee Working Group which met in August 2025.

It was reported that whilst MHCLG had given a decision in principle to the Council in relation to Exceptional Financial Support for 2025-26, final confirmation was awaited. The conditions of use remained the same as previously agreed with MHCLG around capitalisation to deliver revenue budget transformation improvement. The costs of borrowing would be taken over a 20-year period. Members raised concerns in relation to the costs of borrowing however noted that without the application of EFS the S151 officer would not be able to provide a Section 25 Statement at the end of the year.

The committee noted that there had been further refinement to some of the budget assumptions and resulting values since the MTFS was approved in February 2025, as set out within the report. The committee queried the capital programme review to reduce the borrowing costs associated with the current MTFS planned programme by a third. It was agreed that informal conversations would commence next week at the officer Capital Board Review and members of the Sub Committee Working Group would be consulted prior to formal proposals being put to the committee at a public meeting.

The committee queried why the contingency budget had increased so significantly for 2026-27 compared to 2025-26. It was clarified that the 2026-27 contingency line included additionality for one off funding for transformation (£15m) and further transformation for Children’s Services (£10m) along with other risks. Officers confirmed that there was a detailed breakdown of this which would be circulated to the committee.

An amendment was proposed by Councillor Gardiner, seconded and subsequently carried by a majority, in relation to recommendation 2, as set out below.

Amendment 1 - Recommendation 2

Work with officers and members to bring forward further budget change proposals to assist with presenting a balanced budget for 2026/27 (making use of Exceptional Financial Support) to the Corporate Policy Committee for consultation in November 2025.

A second amendment, which was accepted as a friendly amendment, was put forward in relation to recommendation 3, as set out below.

Amendment 2 – Recommendation 3

Recommend to Corporate Policy Committee to delegate to the S151 Officer the permission to continue dialogue with MHCLG on the continued use of Exceptional Financial Support over the life of this MTFS (2029-30).

RESOLVED (unanimously):

That the Finance Sub Committee 

1. Note the updated budget assumptions for the period 2026/27 to 2029/30 including sensitivity analysis.

2. Work with officers and members to bring forward further budget change proposals to assist with presenting a balanced budget for 2026/27 (making use of Exceptional Financial Support) to the Corporate Policy Committee for consultation in November 2025.

3. Recommend to Corporate Policy Committee to delegate to the S151 Officer the permission to continue dialogue with MHCLG on the continued use of Exceptional Financial Support over the life of this MTFS (2029-30).