Agenda item - General Fund Budget Planning & Resource Update - 2026-27 to 2029-30

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 2026/27.

2)           Note the funding assumptions and net expenditure projections for 2026/27 including a projected budget shortfall of £39.765 million.

3)           Note the Medium-Term financial projections for 2026/27 to 2029/30 and the predicted budget gaps totalling over £95 million over the period.

4)           Agree 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 savings targets, to enable a legally balanced budget in 2026/27 and enable the Council Tax for the year to be set.

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

27.1      Cabinet considered a report that provided a budget planning and resource update as a key part of the preparation for the 2026/27 annual budget and Council Tax setting process together with Medium Term Financial Plan projections over the next 4-year period. The report was considered in tandem with Item 28: Targeted Budget Management 2025/26 Month 2.

27.2      Councillors Williams, Muten, Miller, Robins, Taylor and Sankey asked questions and contributed to the debate of the reports.

27.3      Resolved-

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 2026/27.

2)             Note the funding assumptions and net expenditure projections for 2026/27 including a projected budget shortfall of £39.765 million.

3)             Note the Medium-Term financial projections for 2026/27 to 2029/30 and the predicted budget gaps totalling over £95 million over the period.

4)             Agree 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 savings targets, to enable a legally balanced budget in 2026/27 and enable the Council Tax for the year to be set.

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