Agenda item

To consider the recommendations from the meeting of the Cabinet held on 19^th November 2025.

Council considered the outstanding recommendations arising from the meeting of Cabinet held on 19^th November 2025.

 

Medium Term Financial Plan Budget Update and Consultation Report

 

The Cabinet Member for Finance presented the Stage One update of Bromsgrove District Council’s Medium Term Financial Plan (MTFP) for 2026/27 to 2028/29, alongside the proposed budget consultation.

 

This report was presented to the Finance and Budget Working Group on 17^th November 2025 and subsequently at a Cabinet meeting on 19^th November 2025.

 

The report detailed the financial landscape including any significant challenges and the strategy to ensure financial stability for the District.

 

As in previous years, the budget-setting process was split into two stages:

-        Stage One: This was based on known data up to December 2025 and was presented at this Council meeting.

-        Stage Two: Was to be finalised in January 2026 and approved in February 2026, following the Local Government Finance Settlement.

 

Members were informed that the Stage One budget report presented to Cabinet had highlighted a challenging financial position for the upcoming years. The forecast included an approved MTFP position as agreed at full Council in February 2025. At this time, the Council had a projected deficit of just under £1million pounds for the fiscal year 2026- 27 and a projected deficit of just under £400,000 for the fiscal year 2027-28.

 

There were five key factors which influenced these deficit projections. The first being inflationary pressures. It was reported that the Council had experienced increased costs due to inflation. In June 2024, the rate of inflation in the UK was 2 per cent. This peaked at 3.8 per cent in July, August, and September 2025. Whilst there was a welcome fall to 3.6 percent in October, the rate was stubbornly high and above the government target.

 

The second factor was pay awards. A high proportion of the Council’s costs were salaries and on costs such as pensions and National Insurance contributions. Nationally agreed pay awards had not been fully funded by the Government.

 

The third impact was a reduction in grant funding. Anticipated reductions in grant funding continued to contribute to the budget gap. The provisional impact of the Fairer Funding Review was still ongoing.

 

Finally, Local Governement Reorganisation (LGR) would inevitably impact on budgets going forward. The move towards unitary authorities in Worcestershire would significantly alter the local government finance landscape in 2026-27. Consequently, the Council needed to be mindful that the Reserves formed part of this proposal,and any use would need to be factored into the budget setting process.

 

It was reported that the Council had developed a new budget timetable and would take a strategic approach over the coming months. Financial reporting was now all up to date. However, the accounts were still to be audited.

 

The Council was adapting its operations to be more sustainable in response to economic and environmental conditions.

 

One of the key components of the budget process was public consultation which started on 20^th November 2025 and would run through to 2^nd January 2026. The consultation would provide feedback to Officers and Members which could be fed into the second stage of the budget setting process. The consultation asked residents to provide their views on the Council's key priorities, including economic development, environmental environment, housing, and infrastructure. The consultation was available primarily online with paper copies available at libraries and at customer service centres within the District. It was noted that a focus group session was planned for December 2025 to encourage further engagement with residents.

 

In terms of the Capital programme there had been an increase in costs due to inflation and rising interest rates. An updated Capital Program would be provided within the final budget report in February 2026.

 

It was requested that Members worked together over the coming months to ensure financial sustainability for the Council.

 

Following the presentation of the report Members requested further information on several areas contained within the report as follows:

 

·       Did the current deficit of approximately £1 million for the financial year 2026-27 include the forecast overspend for the year? – It was reported that the information within the report were the best estimates of the information at the present time within the budget setting process. The Council needed to be cautious throughout the process however it was unlikely that there would be a deficit of £1 million once the process had been undertaken thoroughly and the budget presented in February 2026.

·       Play Investment Strategy – Given that there was only £160,000 allocated to this Strategy in 2025-26 and £159,000 allocated in 2026-27, which were the only years that the Council could guarantee investment as a result of LGR, would it be possible to revisit these amounts and look to implement the Strategy with greater funds allocated? It was stated that there was a shared ambition across Members of the Council that the Play Investment Strategy be implemented. It was stated that Members were welcome to attend meetings of the Finance and Budget Working Group meetings in order to look at any areas of change in spending within the Strategy. Members also requested clarification whether there would be the opportunity to upgrade Upland Grove to make it accessible for all residents? A response to this specific query would be provided following the meeting.

·       The implementation of a reduction in Council Tax for terminally ill residents – A policy was to be brought forward that would look into this specific matter for consideration by Members in due course.

·       The former Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) funding – Members queried whether the monies held in trust by Birmingham City Council on behalf of the former GBSLEP should be considered a risk for the Council? -  It was reported that there had been a recent Programme Board meeting where this matter had been discussed. It was anticipated that Birmingham City Council would consider the release of the funding at a meeting on 20^th January 2026.

·       Use of Reserves – was there a policy on how the Council offset any deficit with Reserves and what was the trigger point for this? Members were reminded that these matters could be a potential area of discussion at a future FBWG meeting.

 

The recommendation was proposed by Councillor S. T. Nock and seconded by Councillor K. May.

 

RECOMMENDED that

 

The Consultation on the Budget 2026/27 be noted.

 

Homelessness Prevention Grant and Domestic Abuse Grant

 

The Cabinet Member for Health and Wellbeing, Leisure and Culture presented the Homelessness Prevention Grant and Domestic Abuse Grant report for Members’ consideration.   In doing so, it was explained that the report related to the Government's plans to award a consolidated homelessness and rough sleeper grant and a domestic abuse grant. The Government had proposed to make changes to how the grant was awarded and had indicated that a proportion of the grant would be transferred to the revenue support grant from 2026 to 27.

 

The report sought Members’ approval to award the Ministry of Housing,

Communities and Local Government (MCHLG) homelessness prevention grant, including rough sleeping prevention and recovery grant and domestic abuse new burdens grant in addition to the Council's own homelessness grant to specific schemes recommended by the Development and Enabling manager. In addition, it was noted that it was proposed that authority be delegated to the Assistant Director of Community and Housing Services in consultation with the Portfolio Holder for Strategic Housing to allocate any underspend grant during 2026-27 on schemes to prevent homelessness and assist those who become homeless.

 

Members were informed that the report had been considered by the Overview and Scrutiny Board prior to its consideration at the Cabinet meeting 19^th November 2025.

 

Councillor Webb thanked the Officers for their hard work with service providers to help prevent homelessness within the District.

 

Members expressed that this was a positive report about a service that worked extremely well particularly during times of severe weather. Members queried the role of the part-time empty Homes Officer. It was explained that this role had not yet been recruited to however when information became available this would be provided.

 

It was queried how those people who were on the borders of the District were allocated housing if they found themselves homeless. It was noted that the Council had a duty to home rough sleepers and homeless within Bromsgrove where possible and for those in a domestic abuse situation. However, temporary accommodation was sometimes situated outside of the District.

 

Members requested further information on veterans that found themselves homeless. It was reported that veterans did appear as a high priority in terms of the housing list. It was agreed that any further information would be provided following the meeting.

 

The term ‘static accommodation’ was queried by Members. It was noted that this was a term for temporary accommodation and did not refer to static caravan accommodation.

 

The recommendations were proposed by Councillor S. Webb and seconded by Councillor K. Taylor.

 

RESOLVEDthat

 

1)    Subject to the final decision by central Government, that the proposed element of the Revenue Support Grant 2026/27 attributed to Temporary Accommodation bering fenced to the Homelessness Prevention and Rough Sleeping Grant.

 

 

 

Homelessness Grant Allocation	2026/27 £ (up to £495,917)
The Council is committed to maintain the spend below to meet its statutory duties under homelessness legislation
BDHT Housing Agency Agreement Top Up Staffing Costs	52,475
Static Temporary Accommodation for an additional 4 units of accommodation	30,688
Worcestershire Strategic Housing Partnership Co-ordinator – contribution towards county-wide development and delivery of housing initiatives in partnership with other agencies	10,500
Severe Emergency Weather Provision	18,347
St Basils Foyer – provides stable accommodation/support for young people - 14 units – fully occupied during last financial year	50,203
St Basils Crash pad – provides emergency temporary accommodation for 16 and 17 year olds	19,711
Bromsgrove Home Choice CBL and Homelessness Module	14,600
Sub Total	£196,524
The services support the delivery of the Council’s Homelessness Service.
St Basils Young Persons Pathway Worker – support to prevent homelessness for under 25’s and Crash Pad to provide a unit of emergency accommodation for young people.	41,116
NewStarts - Provide Furniture and Volunteering Opportunities for Ex-Offenders – supports tenancy sustainment and provides future employment opportunities/reduces risk of reoffending	10,000
GreenSquare Accord Housing Related Support – helping ex-offenders remain housed/seek employment	31,172
Maggs Rough Sleeper outreach and prevention service targeting rough sleepers and those at risk of rough sleeping.	35,607
North Worcestershire Basement Project - Support for young people at risk of homelessness	30,000
BDHT - Sunrise Project intensive support	46,886
Mental Health Link Worker (part funded)	21,554
CAB – Debt Advice for Home Owners and Private Renters	27,611
CAB – Affordability Assessments	6,021
Housing First/Housing Led Service	29,563
Part time Empty Homes Officer	7,680
Spend to Save Top Up	5,683
County Rough Sleeper Coordinator	5,500
Rough Sleeper Access to Accommodation Fund and NFNO/NSNO	1,000
Sub Total	299,393
Total committed expenditure	£495,917
Underspend	£0

 

 

Quarter Two 2025/26 Finance and Performance Monitoring Report (including Financial Savings and Half Yearly Treasury Management Report)

 

This report provided a comprehensive overview of the Council’s financial position, capital programme, savings delivery, and performance against strategic priorities to the end of September 2025. It was reported that the report had been considered at the Finance and Budget Working Group meeting on 17^th November 2025 prior to its consideration at the Cabinet meeting on 19^th November 2025.

 

During consideration of report the following areas were highlighted:

 

·       As of the end of Quarter 2, the Council was forecasting a £336,000 revenue overspend for the full financial year. This was primarily driven by the following:

·       Increased costs in Waste Management, due to the aging fleet and agency staffing.

·       Additional costs in Finance, including agency cover and VAT consultancy.

·       Shortfalls in parking income and increased costs in Lifeline Services.

It was reported that these pressures had been partially offset by:

·       Vacancy management savings.

·       Increased income in waste services.

·       Underspends in Corporate Financing.

 

·       In terms of savings delivery, at the time of the meeting, £894,000 of £1.213 million savings target had been delivered. Leaving a further £319,000 to be achieved. Work was ongoing to meet this target by year-end.

·       The Capital expenditure stood at £4.872 million against a revised budget of £21.876 million, which included £14.891 million of carry forwards from 2024-25.

·       Key projects included:

·       Windsor Street: Phase one remediation was complete and awaiting Environment Agency feedback on PFAS levels prior to the commencement of phase two.

·       Nailers’ Yard: Construction was progressing well, with a revised completion date of 6th May 2026. A further £500,000 had been committed to this scheme.

·       Reserves and Treasury – there was currently earmarked Reserves of £11.266 million. There had been no new borrowing undertaken. There was £7 million held in short-term investments and Treasury performance and prudential indicators were compliant and stable.

·       Ward Budgets – At the time of the meeting eighteen Members had allocated a total of £15,968.80 of available funding. It was noted that £46,031.20 remained unallocated and must be spent by 31st March 2026. It was confirmed that any unallocated funds would not be carried forward into the next financial year.

·       Collection Fund Performance

·       Council Tax collection was slightly below target at 56.58% for Quarter Two.

·       Business Rates collection was strong at 56.82 per cent, which exceeded the national average.

·     Benefits Processing – on average new claims were processed in sixteen days. Any changes to claims were processed in nine days. This was well within the Department for work and Pensions expectations.

·     Procurement Pipeline – There were ten contracts that exceeded the £200,000 key decision threshold on the pipeline. Five contracts had been procured by Redditch Borough Council on behalf of Bromsgrove District Council.

·     Strategic and Operational Implications - Financial monitoring was fully aligned with the Council’s strategic purposes. Managers continued to work closely with Finance to mitigate risks and ensure delivery of priorities.

 

Following the presentation of the report Members raised several areas, as follows:

 

·       Vacancy management savings – was this a risk in terms of providing quality of services if these vacancies were not managed effectively. It was agreed that this was an area that would continue to be monitored.

·       Clarification provided on the £9,000 underspend car parks – it was agreed that this would be provided to Members following the meeting.

·       Windsor Street Site – whether the level of groundwater at this site was acceptable and if not, would remediation works be necessary and what would the costs be for these works – it was reported that the level of PFAS was still being monitored on this site by the Environment Agency. Any remediation works would be covered within current monies allocated to the project. Members were concerned that due to the possible areas raised that the site might not be ready for completion by the deadline of May 2026. It was noted that the Planning process could still commence alongside any continued monitoring whilst any areas of snagging could be completed if necessary.

·       Dog Kennelling – There were costs of £45,000 for the kennelling of dogs within the procurement pipeline appendix. It was noted that Bromsgrove was the host Authority for Worcestershire Regulatory Services (WRS) who required kennelling services. However, it was confirmed that this amount would be split across all partner authorities.

·       Details of the overspend in car parking – it was noted that a briefing paper would be provided in due course on car parking matters.

 

The recommendations were proposed by Councillor S. T. Nock and seconded by Councillor K. May.

 

RESOLVED that

 

1)    That the Balance Sheet Monitoring Position for Quarter Two be noted – which is the Treasury Monitoring Report and required to be reported to Council.

2)    The Council’s Treasury performance for Q2 of the financial year 25/26 be noted.

3)    The position in relation to the Council’s Prudential indicators be noted.