Agenda item

To consider Report No. FIN2517 (copy attached), which sets out an update on the key factors influencing the Council’s Medium Term Financial Strategy.

The Cabinet considered Report No. FIN2517, which set out a review of the Medium Term Financial Strategy (MTFS) as at the end of September, 2025. The Chairman welcomed the Cllr S. Trussler who had requested to address the Cabinet on this issue.

Members were informed that the report provided an assessment of existing and newly identified budget pressures and progress to date on delivering the required budget savings to achieve financial sustainability with the MTFS period (2025-26 to 2028-29), which was the Council’s top corporate objective. It was explained that the MTFS was being adversely impacted by increased cost pressures identified in the February 2025 budget setting report and delays in identifying and delivering savings, which had been compounded by the Local Government Reorganisation’s significant impact on the capacity of the Council’s strategic leadership team, along with changes within the senior management team as a result of the departure of the Chief Executive. Members were informed that it was essential that the Council identified long-term underlaying savings to address the Council’s financial challenges over the medium term.

The Cabinet heard from Cllr Trussler, who was a member of the Financial Recovery Working Group and had been a member of the Budget Strategy Working Group before this. From his involvement with the Working Groups, Cllr Trussler expressed concern that potential savings from efficiencies were now running out and that it was unclear where these would be delivered going forward. He also felt that, with the Union Yard disposal being delayed, it was time to revisit some decisions that had been taken in that regard. Cllr Trussler went on to state that, as Shadow Finance & Resources Portfolio Holder, he felt unsighted on the details and timetable for proposed changes to the Council’s commercial property portfolio and that he had been promised two-weekly updates had not materialised. Finally, Cllr Trussler expressed concern over the possibility of a delay to the timetable for Local Government Reorganisation. It was his contention that, should this happen, the Council’s financial position would become increasingly precarious over time and he proposed that the Council should consider taking action now to mitigate this eventuality.

During discussions the Cabinet thanked Cllr Trussler for his contribution to the meeting and also considered the importance of monitoring risks and uncertainties. It was acknowledged that the coming period would continue to be challenging for the Council but it was felt that extra resources had been put in place where required and that financial plans had been drawn up to place the Council in the best possible position to deal with this.

The Cabinet RESOLVED that the Medium Term Financial Strategy, as set out in Report No. FIN2517, be noted and that the following actions be recommended to the Council’s Senior Management Team:

-               to continue with existing plans for the rigorous review of the Council’s services and the finding of efficiency savings within those, including staff structures;

-               to ensure sufficient resources continue to be put into asset disposals, along with regular structured monitoring of the process;

-               to ensure realistic and deliverable timetabling in respect of asset disposals; and

-               to ensure that the Council’s budget process is published as soon as practicable.