Agenda item

Report of the Strategic Leadership Team

The Leader introduced the report (previously circulated) of the Strategic Leadership Team to propose a Medium-Term Financial Plan (MTFP) for 2026/27 to 2029/30 for consultation, including setting a budget and Council Tax increase for 2026/27. 

The submitted report stated that the Council was facing significant and unparalleled financial challenges stemming from reductions in public spending; the aftermath of Covid; the current economic climate; increased cost of living; income deprivation and rising poverty; high inflation; and the increased demand for services particularly in relation to adults and children’s social care and homelessness. The Council is facing a spiralling increase in cost and demand for services in Children’s and Adult’s Social Care which have had a direct impact on the Council’s contracted expenditure. 

It was reported that as part of the funding reform consultation, the government confirmed the intention and expectation that councils would increase their Council Tax by 5% per annum, including the Adult Social Care precept. The MTFP then proposes a Council Tax increase of 2.99% and an Adult Social Care precept of 2% which will generate £2.126m and £1.422m respectively. It was explained that Adult Social Care is by far the largest overall budget with a spend of £59.7m and the precept is crucial to meet overall costs, and pressure faced in this service area.

Details of the projected expenditure and income; budget pressures and savings; schedule of proposed fees and charges; assumptions used to prepare estimates; projected Revenue Outturn 2025/26; and proposed Capital Medium Term Financial Plan 2026/27 to 2029/30, were all also appended to the submitted report.

RESOLVED - That the Revenue Medium Term Financial Plan (MTFP) and the Capital Programme, as set out in Appendices 6 and 7 respectively to the submitted report, be approved for consultation, including: -

(a) A Council Tax increase of 2.99% plus a 2% Adult Social Care Precept to help fund social

care for 2026/27.

(b) The Schedule of Charges as set out in Appendix 3.

(c) The efficiency savings and transformation programme proposed.

REASONS - (a) The Council must set a budget for the next financial year.

 (b) To enable the Council to continue to plan services and finances over the medium term.

(c) To ensure decisions can be made in a timely manner.

(d) To reduce the pressures on the MTFT in the medium term

(e) To ensure investment in the Council’s assets is maintained.