Issue - meetings

To consider the report on the Medium Term Financial Strategy Consultation 2026/27- 2029/30.

The Committee received an update on the development of the Medium-Term Financial Strategy for 2026–2030.

The report outlined key updates to financial assumptions, including revised growth allocations for Adult Social Care and Children’s Services, the introduction of a 5% vacancy factor across staffing budgets, above inflation increases in fees and charges, and the reprofiling of transformation pump priming budgets funded through capital receipts. Additional service budget adjustments and contingency for inflation were also highlighted.

Members noted that the Council continued to face significant financial challenges, with a forecasted budget gap of £18.2m for 2026/27, reduced from £33.3m following recent refinements.

The committee considered the list of Highways and Transport budget savings proposals that contained in Annex 1 of the report.

A question was raised in respect of how areas for the Street Lighting Dimming/Switching Down budget saving would be identified and concerns around safety issues. In response officers assured members that extensive consultation would take place and the project would only be taken forward following capital investment.

In response to a query regarding whether advertising income, which included bus stop advertising, would also include council-owned car parks, officers advised that a market engagement exercise had been undertaken with other authorities that already had advertising policies in place. Advertising companies had also been approached to gauge interest, and the scope would include a range of different council assets. It was further noted that a substantial procurement process would be required as part of the implementation.

A question was raised in respect of the proposed streetlight dimming and whether the calculations for the proposed 12-year payback period had considered potential changes in government policy—specifically, a future government that might reduce or remove green subsidies for electric options.

In response officers stated that the assumption was reasonably conservative, factoring in rising energy costs over a long period and subject to external influences on energy prices, the 12- 14year return on investment was considered reasonable and achievable.

An updated MTFS report would be brought to each service committee in January which would then be considered at Full Council in February.

RESOLVED:

That the Highways and Transport Committee

1. Noted the updated budget position for the period 2026/27 to 2029/30 as set out in Table 3 of the report.

2. Scrutinises and provided feedback on the list of Highways and Transport budget savings proposals that are contained in the budget consultation launched in November 2025 as contained in Annex 1 of the report.

3. Noted the conditions for successful budget delivery, as approved by Corporate Policy Committee on 30 October 2025, which are set out in paragraph 12 of the report.