Issue - meetings

The Director of Finance and Section 151 Officer presented the Medium Term Financial Plan Scene Setting Report for 2027/28.

Members were advised that this was the first in a series of reports that would be presented to Cabinet throughout the remainder of the financial year. The report established the starting position for the development of the 2027/28 budget and the Medium Term Financial Plan (MTFP) covering the subsequent financial years leading up to Vesting Day under Local Government Reorganisation.

Cabinet noted the proposed timetable for consideration of the MTFP by both Cabinet and Council. The report also outlined the key assumptions underpinning the financial forecasts and identified a number of budget pressures that would need to be addressed as part of the financial planning process, which totalled approximately one million pounds.

Members were informed that the report highlighted a number of overarching financial risks and uncertainties that could impact the Council’s financial position.

Cabinet also noted that the first stage of a budget review had been undertaken with senior officers to identify key service pressures, savings opportunities and areas requiring further consideration as part of the development of the MTFP.

In response to a question from Members regarding identified budget pressures and undelivered base budget efficiencies, officers clarified that the £927,000 pressure related to savings that had been identified in previous budget-setting exercises but had not been delivered in a manner that could be permanently incorporated into the Council’s base budget. Officers explained that, whilst some savings had been achieved, these had often been delivered through measures such as vacancy management rather than through permanent reductions in expenditure. Although some of the efficiencies related to earlier financial years, including 2025/26, their impact remained relevant to the Council’s financial position and had therefore been reflected as a budget pressure within the MTFP for 2027/28.

The Portfolio Holder for Finance commented that the report provided a clear baseline of the financial challenges facing the Council over the medium term. It was emphasised that the administration’s approach to the budget-setting process would be underpinned by transparency, openness and robust governance, ensuring that Members were fully informed of the financial position and the decisions required throughout the process.

RESOLVED that

1) The budget process outlined in this report be followed for the 2027/28 annual budget and the Medium Term Financial Plan (2027/28 to 2030/31), subject to the impact of Local Government Reorganisation and vesting day on 1st April 2028.

2) The current pressures of £1.037 million be noted for consideration as part of the budget process for 2027/28.