Issue - meetings

To consider a report of the Cabinet Member for Finance and Capital Strategy.

(a)           That the updated cost pressures set out in the Cabinet report of 11 November 2025 and the validation work that had been carried out on them, be noted.

(b)           That the assumptions being used in the Medium-Term Financial Plan (MTFP) be agreed.

(c)           That the financial gap arising from (b) and (c) above be noted.

(d)           That Cabinet agrees the 2026/27 principles for budget setting outlined in section 13 of the report of 11 November 2025.

(e)           That the approach to closing the budget gap set out in the report of 11 November 2025 be noted, recognising that the work was in progress.

(f)            That Cabinet continues to lobby local MPs and work with peers to press the case for additional, multi-year funding.

(g)           That Cabinet Members work with officers to continue to identify and develop further efficiencies and savings.

(h)           That Cabinet endorse the next steps and timetable leading up to the 2026/27 budget which will presented to full Council on 10 February 2026.

Reason for the decision

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

The report of 11 November 2025 was presented to Cabinet to provide an update on the projected budget gap for 2026/27 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 2025/26 against the approved budget.

The Cabinet Member for Finance and Capital Strategy set out the framework for the 2026/27 budget and the Medium-Term Financial Plan (MTFP). The report also outlined the ongoing challenging work throughout the autumn to enable the budget to be finalised ahead of the Full Council meeting in February 2026. The Cabinet Member proposed the recommendation as set out in the report.

In seconding the recommendation Cllr B Wilson advised that given the ongoing uncertainty, this highlighted that the council must continue its transformation journey. As a whole organisation, this evolution was essential to ensure that services remain efficient, deliver value, and meet the needs of the community.

In response to questions, the Cabinet Member for Finance and Capital Strategy confirmed that no additional car parking charges were anticipated within the budget.  He further noted that setting a balanced budget remained highly challenging and due to pressures, there was very little flexibility available to the council.

Decision

(a)           That the updated cost pressures set out in the Cabinet report of 11 November 2025 and the validation work that had been carried out on them, be noted.

(b)           That the assumptions being used in the Medium-Term Financial Plan (MTFP) be agreed.

(c)           That the financial gap arising from (b) and (c) above be noted.

(d)           That Cabinet agrees the 2026/27 principles for budget setting outlined in section 13 of the report of 11 November 2025.

(e)           That the approach to closing the budget gap set out in the report of 11 November 2025 be noted, recognising that the work was in progress.

(f)            That Cabinet continues to lobby local MPs and work with peers to press the case for additional, multi-year funding.

(g)           That Cabinet Members work with officers to continue to identify and develop further efficiencies and savings.

(h)           That Cabinet endorse the next steps and timetable leading up to the 2026/27 budget which will presented to full Council on 10 February 2026.

Reason for the decision

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

The report of 11 November 2025 was presented to Cabinet to provide an update on the projected budget gap for 2026/27 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 2025/26 against the approved budget.