Issue - meetings

To consider the report on the MTFS assumptions 2026-27 / 2029-30.

The committee considered the report which set out the baseline assumptions for net revenue expenditure and core funding, to assist with the development of the Medium-Term Financial Strategy 2026 to 2030. The report provided early planning oversight for each service committee as part of the 2026-27 budget setting process. The committee noted that further details relating to the 2026-27 Fair Funding Review and Business Rayes Retention Reset would be received following the Spending Review announcement by the Chancellor on 11 June. This review would set out three-year budgets for local authorities covering the period 2026-27 to 2028-29.

The committee welcomed the proposal to form a Working Group to further review assumptions over the summer with the aim of feeding back to the committee in September. It was highlighted that this Working Group would be open to all members of the Finance Sub Committee to attend.

The committee noted that the Council Tax Support Scheme budget increased each year in line with the council tax percentage increases. The committee requested that a review of the Council Tax Support Scheme be added to the Work Programme to allow the committee the opportunity to review the scheme and identify if it was financially sustainable. The committee also suggested a review of the empty homes premium could assist in revenue income whilst reducing the number of empty properties across the borough. It was felt that Cheshire East undercharged significantly for properties left empty for 2-5 years, when compared to other authorities.

The committee queried the costs of the Cheshire and Warrington Combined Authority Mayoral 2026 Elections, noting that the Cheshire and Warrington Joint Committee had recently approved a budget of £1.275m to fund the necessary activities for devolution. It was clarified that this budget did not cover the costs of elections, and that any costs incurred by each authority for the 2026 Mayoral Elections would be reimbursed by the Combined Authority at its inception.  The committee sought clarity on the interest rates and terms that would be applied. Officers committed to providing a written response.

The committee sought clarity on transformation savings, noting that these were wrapped up in total service budget lines. The committee agreed it would be helpful to have a detailed breakdown to allow scrutiny, openness and transparency. 

RESOLVED (unanimously):

That the Finance Sub Committee

1. Approve the budget assumptions underpinning the Medium-Term Financial Strategy for 2026-30, for planning purposes, as set out in Appendix A1 and Appendix A2.

2. Approve the setting up of a Finance Sub-Committee Assumptions Working Group to meet informally with the Chief Finance Officer/S151 to review the current assumptions and any information released regarding the Fairer Funding and Business Rates reset changes with the aim of feeding back to the September committee meeting. The group is to be made up of at least four members of the Sub-Committee.

3. Note the predicted shortfall for 2026/27 as shown in Table 1 and 4. All Committees areas are being asked to start to develop plans in preparation for budget consultation and  ...  view the full minutes text for item 6