Agenda item

This report:

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

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

·       Presents an update on the letters 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.

Provides details of the council’s responses to two government consultation documents namely the Local Government Fair Funding Review and Modernising and Improving the administration of council tax.

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)  noted the update on the conversation with government around the impact that the DSG deficit is having on the financial sustainability of the council; and

(d)  continue to express concern to government at the existential challenge to the Councils ability to set a legally balanced budget for 2026/27 posed by having the lack of cash to fund the special educational needs and disability service (SEND);

(e)  Request the Leader and CEO to write to the Ministers for Education and Local Government to demand a meeting to resolve how BCP finances the DSG deficit in such a way as the Councils general fund is not affected

(f)    Ask BCPs local MP’s to write in support of the above at ‘e’.

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 letters submitted to MHCLG in July 2025 regarding the difficulties presented by the accumulating DSG deficit.

The reason for the additional recommendations at ‘e’ and ‘f’, was the serious concerns of the Cabinet regarding the DSG deficit and ongoing cashflow issues to fund the deficit position interest which had now reached £6million.

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:

(a)  Aimed to ensure the council presents a legally balanced 2026/27 budget;

(b)  Presented an update on the MTFP position of the council;

(c)   Presented an update on the letters 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; and

(d)  Provided details of the council’s responses to two government consultation documents namely the Local Government Fair Funding Review and Modernising and Improving the administration of council tax.

The Chair of the Overview and Scrutiny Board, Councillor Kate Salmon addressed the Cabinet advising that at their recent meeting the Board had considered the Budget report and they had also considered a number of issues as part of the Scrutiny of the budget setting process and recommended to Cabinet that as part of the Budgetsetting process. consideration be given to utilising receipts from the existing surplus asset disposal programme for 2026/27 to address some of the repairs and maintenance of publicly facing assets.

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)  noted the update on the conversation with government around the impact that the DSG deficit is having on the financial sustainability of the council; and

(d)  continue to express concern to government at the existential challenge to the Councils ability to set a legally balanced budget for 2026/27 posed by having the lack of cash to fund the special educational needs and disability service (SEND);

(e)  Request the Leader and CEO to write to the Ministers for Education and Local Government to demand a meeting to resolve how BCP finances the DSG deficit in such a way as the Councils general fund is not affected

(f)    Ask BCPs local MP’s to write in support of the above at ‘e’.

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 letters submitted to MHCLG in July 2025 regarding the difficulties presented by the accumulating DSG deficit.

The reason for the additional recommendations at ‘e’ and ‘f’, was the serious concerns of the Cabinet regarding the DSG deficit and ongoing cashflow issues to fund the deficit position interest which had now reached £6million.