Agenda item

To receive an update on the MTFS development.

The committee considered the report which provided an update on the development of the Medium-Term Financial Strategy 2026-30 following the Finance Sub Committee Working Group meetings held in August and September 2025. It was noted that the budget gap, without mitigations, was £33.3m on the General Fund Revenue Budget for 2026-27.

The report outlined the key financial planning assumptions underpinning the MTFS, including inflation forecasts, interest rates, pay awards, and anticipated changes to government funding. It was noted that the financial environment remained challenging, with continued uncertainty around national policy and funding reforms. The committee acknowledged the importance of maintaining a robust and flexible financial strategy to support the delivery of council services and priorities.

The committee queried the proposal to review the capital programme and reduce the borrowing associated with the current MTFS planned programme by a third and the impact this could have. It was confirmed that projects funded by external monies such as grant funding, CIL, S106 should continue. However; projects that were reliant on borrowing needed to be reviewed and supported by a robust high-level business case to understand to full revenue impact and if this outweighed the costs of funding the project. 

The committee noted the Council wide transformation savings. It was queried if these were sufficient to deliver the transformation needed. Officers confirmed that the Transformation Programme was led by the Council, working alongside its transformation partner which provided the capacity and capabilities needed to deliver significant savings. Work was underway to change the Council’s skill set internally.

The Committee expressed its thanks to the Section 151 Officer and his team for the report, noting that it provided a clear and informative overview of the challenges currently facing the Council. Whilst acknowledging the severity of the financial position, Members were confident that they understood the scale of the issue and the strategic plan in place to address it. The Committee also emphasised the importance of ensuring that staff were supported throughout the process and actively engaged in the transformation journey.

An amendment was proposed and accepted by the Committee as a friendly amendment, in relation to recommendation 3, as set out below.

Proposed Amendment to Recommendation 3 (Proposed by Cllr Gardiner)

3. 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). Regular updates to be provided to the Corporate Policy Committee and Finance Sub Committee on any progress made.

RESOLVED (unanimously):

That the Corporate Policy Committee

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

2. Note the Finance Sub-Committee’s recommendation that it 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. 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). Regular updates to be provided to Corporate Policy Committee and Finance Sub Committee on any progress made.

4. Approve the approach to consultation and engagement: - To engage immediately from during October through a high-level prioritisation survey.

• To undertake a full consultation on potential detailed budget change proposals from the beginning of November through to the end of January 2026

The meeting adjourned for a short break at 11.36am and reconvened at 11.44am.