Decision

The Committee has decided to approve recommendations on the Financial Sustainability Plan and Medium-Term Financial Plan, with implications for setting a balanced budget and addressing an underlying funding gap.

Analysis

outcome: Recommendations were approved by the Committee.

summary: The decision involves approving recommendations on the Financial Sustainability Plan and Medium-Term Financial Plan (MTFP) with implications for setting a balanced budget and addressing an underlying funding gap.

topline: The Committee has decided to approve recommendations on the Financial Sustainability Plan and Medium-Term Financial Plan, with implications for setting a balanced budget and addressing an underlying funding gap.

reason_contentious: This issue may be contentious as setting a balanced budget and addressing funding gaps can impact service delivery and may lead to disagreements among stakeholders.

affected_stakeholders: ["Committee Members", "Local government finance stakeholders"]

contentiousness_score: 6

political_party_relevance: There are no mentions or implications of political parties or political influence on the decision.

URL: https://committee.worcester.gov.uk/ieDecisionDetails.aspx?ID=265

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Committee considered an update report on the Financial Sustainability Plan and the Medium-Term Financial Plan (MTFP). The Corporate Director – Finance and Resources presented the report and highlighted the implications of setting a balanced budget in the context of an existing underlying budget gap. In summary, further information was now available on a number of issues since setting the budget in February 2025, but the actual impact on the MTFP was still unclear. In addition, since setting the budget, the Government had released 3 consultation documents relating to local government finance. It was too early to assess to the full impact, but the proposals would create significant uncertainty when looking to set the 2026/27 budget and address the underlying funding gap.      The report set out proposals for consultation regarding the MTFP, which will follow a similar process to previous years.   Officers responded to questions and comments from Committee Members. During the debate, the view was expressed that the budget proposals which are presented to Council for 2026/27 should make it clear where there will be an impact on delivery of services.   RESOLVED: That the Committee agree to note:   1.    the update on the Financial Sustainability Plan; and   2.    the update on the Medium-Term Financial Plan (MTFP) and agrees the budget timetable as set out in paragraph 3.2 of the report.  

Date of Decision: July 15, 2025