Decision - General Fund Budget Planning and Resource Update 2025-26

This report presents the General Fund resource and cost estimates for 2025-26 and the 4-year MTFS period for noting. The report also seeks approval of the approach for setting the annual revenue and capital budget for 2025-26.

That Cabinet:

1)            Note the planning assumption of a Council Tax increase of 2.99% over the 4-year Medium-Term Financial Plan period and an Adult Social Care Precept of 2.00% or the equivalent in grant funding in 2025/26.

2)            Note the funding assumptions and net expenditure projections for 2025/26 including a projected budget shortfall of £36.730 million.

3)            Note the Medium Term financial projections for 2025/26 to 2028/29 and the predicted budget gaps totalling over £105 million over the period.

4)            Note the proposed budget development approach and that members will use this to develop 4-year medium-term service and financial plans and proposals for Budget Council consideration, including detailed budget proposals to set a legally balanced budget in 2025/26 and enable the Council Tax for the year to be set.

5)            Note the planning assumption of recurrently funding transformation enabling resources of at least £1 million, as set out in paragraphs 7.5 to 7.6, from the revenue budget rather than the previous practice of utilising capital receipts since 2016/17.

6)            Note that projections for next year and the Medium Term Financial Plan (MTFP) will be updated following government funding announcements expected in Autumn 2024 and Spring 2025.