Issue - items at meetings - Medium Term Financial Plan (MTFP) Update

This report:

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

· Presents an update on the 11 June 2025 Spending Review.

· Provides details of two consultation documents issued on 20 June 2025 namely the Local Government Fair Funding Review and Modernising and Improving the administration of council tax.

· Presents an update on the MTFP position of the council.

Acknowledges the action of the Leader of the Council and Director of Finance in writing to Government to seek assurance around the council’s ability to continue to cashflow the significant and growing Dedicated Schools Grants deficit within the statutory framework.

RESOLVED that Cabinet: -

(a) Endorses the latest position regarding the developing 2026/27 Budget and MTFP position.

(b) Acknowledges the ongoing progress being made to ensure a balanced budget position for 2026/27 is presented to Council in February 2026.

(c) In respect of the SEND deficit, note the update and acknowledges the action taken by the Leader and the Director of Finance.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To comply with accounting codes of practice and best practice which requires councils to have a rolling multi-year medium term financial plan.

To provide Cabinet with the latest high-level overview of the 2026/27 Budget and 3-year medium-term financial plan.

To provide an update on the 11 June 2025 Comprehensive Spending Review (SR25) and the consultations documents issued on 20 June in respect of the local government funding formula and the modernisation of council tax.

To acknowledge that the current and growing deficit on the Dedicated Schools Grant (DSG) as it pertains to the expenditure on Special Educational Needs and Disability (SEND) service continues to be an existential threat to the financial sustainability of the council.

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 'B' to these Minutes in the Minute Book.

Cabinet was advised that the report:

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

· Presented an update on the 11 June 2025 Spending Review.

· Provided details of two consultation documents issued on 20 June 2025 namely the Local Government Fair Funding Review and Modernising and Improving the administration of council tax.

· Presented an update on the MTFP position of the council; and

· Acknowledged the action of the Leader of the Council and Director of Finance in writing to Government to seek assurance around the council’s ability to continue to cashflow the significant and growing Dedicated Schools Grants deficit within the statutory framework.

The Chair of the Overview and Scrutiny Board, Councillor Kate Salmon addressed the Cabinet advising that at their meeting the previous evening the Board had had a good discussion on this item, particularly around the funding deficit with regards to high needs, and had supported the report and proposed the following recommendation: -

The Overview and Scrutiny Board endorsed the work of Members and Officers around SEND as set out in recommendation C of the report as follows:

In respect of the SEND deficit, note the update and acknowledges the action taken by the Leader and the Director of Finance.

The Portfolio Holder for Finance thanked the Chair and members of the Overview and Scrutiny Board for their discussion and recommendation from the previous evenings meeting.