Issue - meetings

This report:

·       Presents an update on Local Government Funding Reforms and the government Spring Statement.

·       Aims to ensure the council presents a legally balanced 2026/27 budget. 

·       Proposes a budget planning process and timeline for key financial reports.

Proposes a financial strategy to support the delivery of a robust and financially sustainable budget for 2026/27. 

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'D' to these Minutes in the Minute Book. The Board was advised that the update marked the beginning of the 2026–2027 budget-setting process. The report had been brought forward from July to May to allow more time to identify savings and to increase member involvement in shaping the budget. The report presented an update on Local Government Funding Reforms and the government Spring Statement, aimed to ensure the council presents a legally balanced 2026/27 budget and Proposed a budget planning process and timeline for key financial reports. In the following discussion a number of points were raised including:

·       The earlier start to the process was welcomed. It was noted that it would allow for more thorough scrutiny and better planning. It was agreed that this approach would help avoid last-minute decisions and provide greater transparency in financial planning.

·       The Board acknowledged the ongoing financial pressures facing the Council, including rising costs and uncertainty around future government funding. It was noted that the Council would need to continue finding savings while maintaining essential services, and that the MTFP was key in managing these challenges.

·       There was a discussion about the importance of clear communication with residents regarding the Council’s financial position and the decisions being made. Members emphasised the need for transparency and accountability, particularly where service delivery may be affected.

·       The Board also expressed interest in being more actively involved in the budget-setting process going forward. Members supported the idea of regular updates and opportunities to contribute to financial planning discussions, to ensure that the budget reflects the priorities of both councillors and the communities they represent.

·       A specific concern was raised regarding the Dedicated Schools Grant (DSG) deficit. Members noted the importance of the upcoming government announcement on 11 June and the potential implications if the issue was not addressed. It was highlighted that the interest on the DSG deficit could significantly worsen the Council’s financial position.

·       The Board also discussed the need to include the Council’s 2030 net zero carbon target in the risk assessment process and agreed that this should continue to be reviewed as part of the financial planning framework.