Issue - meetings

The Board considered a report from the Director of Finance, which presented the Medium Term Financial Strategy (MTFS) for the period 2025/26 to 2028/29.

The MTFS sets out a three-year projection of the Council’s resources and spending and was based on information that was currently available.   The MTFS financial year sat outside the period of time covered by the most recent Public Sector Spending Review, published in October 2021. The Chancellor had commissioned a new Spending Review which was intended to set Government departmental limits over a three-year period. The Review was set to conclude in Spring 2025, which would not be in time to inform 2025/26 budgets. Details of the 2025/26 Local Government Finance Settlement are expected to be released in December 2024 on a provisional basis with a final settlement expected in January 2025.

The Board was advised that the uncertainty regarding 2025/26 financial resources meant the financial information included within the MTFS was based on a large number of assumptions and best estimates.  The financial forecast would be updated as and when further information was known.  Appendix 1 therefore detailed the MTFS from 2025/26 – 2028/29 using a prudent estimate of the financial conditions over the course of the next four years.  Appendix 2 presented the Reserves and Balances Strategy and Appendix 3 outlined Approved Budget Savings for 2025/26.

Reason for Decision

To seek approval for the Council’s MTFS for 2025/26 to 2028/29.

Alternative options considered and rejected

The alternative option of not maintaining a MTFS has been considered. However, this would not follow good financial management practice, as the MTFS is a key element in informing the Council’s financial planning and budget setting processes.

Implementation date

The MTFS 2025/26 to 2028/29 will be implemented from 1 April 2025.

RESOLVED:  That

1)    the Medium Term Financial Strategy be approved;

2)    the 2025/26 base budget be prepared on the basis of the underlying assumptions set out in the Strategy;

3)    the Reserves and Balances Strategy be approved;

4)    the award of Council Tax Support for 2025/26 remains at the 2024/25 level of 21.55%; and

5)    Council approve the submission of an application to Government for Exceptional Finance Support.