Decision details

Medium Term Financial Plan (MTFP) and budget strategy.

(i)             That the updated cost pressures and savings set out in the paper and the validation work that has been carried out on them, be noted.

(ii)            That the assumptions being used in the Medium-Term Financial Plan, be noted;

(iii)          That the financial gap arising from (i) and (ii) above, be noted

(iv)          That the 2027/28 principles for multiyear budget setting outlined in section 13 of the report to cabinet of 10 November 2026, be noted.

(v)           That the approach to closing the budget gap set out in the report, be noted recognising that this work was in progress

(vi)          That Cabinet continued to lobby local MPs and work with peers to press the case for fair funding for Dorset

(vii)         That Cabinet agree that Cabinet Members work with officers to continue to identify and develop further efficiencies and savings

(viii)       That Cabinet endorse the next steps and timetable leading up to the 2027/28 budget which will be presented to full Council on 11 February 2027.

Reason for the decision

Local authorities were legally obligated to set a balanced annual budget, meaning that planned expenditure must be matched by sustainable income sources. This excluded reliance on one-off or short-term funding that could not be maintained over time.

The Cabinet report of 10 November 2026 provided an update on the projected budget gap for 2027/28, and the subsequent years covered by the MTFP. It also outlined progress made to date on identified actions and savings, including the forecasted financial performance for 2026/27 against the approved budget.