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

This report:

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

· Highlights the significant amount of uncertainty at this time caused by fluctuations in the predicted outcome of the governments Fair Funding Formula review.

· Provides an update on the implications of the November local government finance policy statement, alongside the Chancellor’s 26 November National Budget.

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

· Includes updates in respect of the existential threat to the council’s financial sustainability caused by the accumulated and growing deficit on the Dedicated Schools Grant (DSG) as pertaining to the high needs block expenditure on Special Educational Needs and Disability (SEND).

· Proposes not to change the Local Council Tax Support Scheme (LCTSS) for 2026/27 and therefore to continue with the same scheme the council has operated with since April 2019.

RESOLVED that Cabinet: -

(a) Acknowledged the ongoing progress being made to address the funding gap for 2026/27;

(b) Endorsed the latest position regarding the developing 2026/27 Budget and MTFP position;

(c) Recognised the significant level of uncertainty at this time due to fluctuations in the predicted outcome of the governments Fair Funding Formula;

(d) Approved the implementation of a restricted voluntary redundancy process to enable the delivery of 2026/27 savings from specific service-based restructures;

(e) Requested Portfolio Holders, Corporate Directors and Budget Holders bring forward the necessary additional savings, efficiencies, additional income proposals and service adjustment proposals to enable the 2026/27 Budget to be legally balanced; and

(f) Approved the continuation of the current Local Council Tax Support Scheme (LCTSS) for 2026/27.

Voting: Unanimous

Portfolio Holder: Finance

Reasons

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 including any updates on the government’s proposals to return the SEND system to financial sustainability in 2025.

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 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report: -

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

· Highlighted the significant amount of uncertainty at this time caused by fluctuations in the predicted outcome of the governments Fair Funding Formula review;

· Provided an update on the implications of the November local government finance policy statement, alongside the Chancellor’s 26 November National Budget;

· Presented an update on the latest assumed MTFP position of the council;

· Included updates in respect of the existential threat to the council’s financial sustainability caused by the accumulated and growing deficit on the Dedicated Schools Grant (DSG) as pertaining to the high needs block expenditure on Special Educational Needs and Disability (SEND); and

· Proposes not to change the Local Council Tax Support Scheme (LCTSS) for 2026/27 and therefore to continue with the same scheme the council has operated with since April 2019.

Councillor Patrick Canavan addressed the Cabinet in relation to the item stressing the importance of Scrutiny involvement in the budget process and of having all available information to consider options.

Cabinet discussed the report and highlighted the impact the SEND deficit was having on other services.

The Leader of the Council advised the Cabinet of the recent discussions by the Overview and Scrutiny Board in relation to this item and expressed thanks to the Board for their majority decision to support the recommendations as set out.