Decision
Analysis
outcome: The Cabinet agreed to the updated medium term financial forecast, next steps for maintaining a balanced budget, underwriting a share of costs for local government reorganisation, creating an earmarked reserve, and approving virements to manage pressures in 2025/26.
summary: The decision involves agreeing to updated financial forecasts, next steps for maintaining a balanced budget, underwriting costs for local government reorganisation, creating a reserve for future costs, and approving virements to manage pressures in 2025/26.
topline: The Cabinet has decided to agree to updated financial forecasts and next steps for maintaining a balanced budget, underwriting costs for local government reorganisation, creating a reserve for future costs, and approving virements to manage pressures in 2025/26.
reason_contentious: This issue may be contentious as it involves financial decisions that could impact various stakeholders and services provided by the council.
affected_stakeholders: ["Council members", "Local residents", "Service users"]
contentiousness_score: 5
political_party_relevance: There may be implications of political influence as decisions around budgeting and financial planning can be politically charged.
URL: https://www.southampton.gov.uk/modernGov/ieDecisionDetails.aspx?ID=3548
Decision Maker: Cabinet
Outcome:
Is Key Decision?: No
Is Callable In?: Yes
Purpose: To consider the report of the Cabinet Member for Finance and Corporate Services detailing an update of the Medium Term Financial Strategy.
Content: i) To agree the updated medium term financial forecast set out in Appendix 1. ii) To agree the next steps to developing the MTFS and maintaining a balanced budget over the medium term. iii) To agree to underwrite a proportionate share of the costs of local government reorganisation and devolution alongside the other upper tier authorities. iv) To agree the creation of an earmarked reserve for future costs associated with Local Government Reorganisation and Devolution. v) To agree the virements requested in relation to managing pressures in 2025/26 as a set out in paragraph 9. The council’s agreed financial strategy sets out the MTFS will be updated on a quarterly basis in line with best practice. The MTFS is a dynamic plan which requires regular review and update to ensure the council has clear oversight of its medium term financial position, ensuring assumptions are reviewed and revised where necessary alongside progress on the delivery of the plan. The council is legally obliged to set a balanced budget for 2026/27 and it would be imprudent not to review whether the council is still on track to achieving this.
Date of Decision: July 15, 2025