Lead Member – Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer – James Walton, Executive Director (S151)

REPORT TO FOLLOW

RESOLVED:

That Cabinet:

1.     Work with Officers during Q4 in the current year and into 2026/27 to develop a Financial Sustainability Strategy and transformation and change programme which will deliver savings and generate income, in order to reduce the duration of time for which EFS (exceptional financial support) is required across the medium-term financial period.  

2.     Work with Officers during Q4 in the current year and into 2026/27 through the establishment of a joint working group to develop and progress an approach to business and budget planning.  

3.     Ask Officers to continue to work with MHCLG in support of its application for exceptional financial support and actions required to return to financial stability. 

The Portfolio Holder for Finance presented the draft Medium Term Financial Strategy (to be known as a Plan in future), highlighting the Council’s financial challenges, reliance on exceptional financial support, and the need to borrow up to £130 million. He highlighted the disparity in funding between rural and urban authorities.

Members noted that a public consultation on budget proposals was conducted, with findings to inform the final MTFS. The Portfolio Holder assured members that the Council was working to be transparent, increase staff capacity, and improve internal competence, with scrutiny reports being brought forward.

Members were advised that the MTFS represented a realistic assessment of the Council’s financial position; transformation and improved processes are expected to chip away at the funding gap. It was clarified that the MTFS presented a worst-case scenario, and any successful transformation would improve the outlook.

Cabinet members called for cross-party and MP support to lobby for fairer funding and interest terms, stressing the impact on residents and the importance of joint action.

RESOLVED:

That Cabinet:

1.     Work with Officers during Q4 in the current year and into 2026/27 to develop a Financial Sustainability Strategy and transformation and change programme which will deliver savings and generate income, in order to reduce the duration of time for which EFS (exceptional financial support) is required across the medium-term financial period.  

2.     Work with Officers during Q4 in the current year and into 2026/27 through the establishment of a joint working group to develop and progress an approach to business and budget planning.  

3.     Ask Officers to continue to work with MHCLG in support of its application for exceptional financial support and actions required to return to financial stability.