URL: https://democracy.stevenage.gov.uk/ieDecisionDetails.aspx?ID=3645

Decision Maker: Cabinet

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Cabinet received a report updating Members on the General Fund Medium Term Financial Strategy (MTFS) which provided a comprehensive overview of the financial landscape and strategic planning for the Council.   The report highlighted the significant changes and challenges faced by the Council, including the impacts of Local Government Reform (LGR) and the upcoming Fair Funding reforms.  Members were pleased to note that the changes were projected to improve the Council's funding position, allowing for better financial resilience.   Officers advised that although the provisional settlement would not be known until mid-December, when the Fair Funding reforms took effect, there would be the opportunity to include some one off revenue or capital growth once known, and future years savings targets were now projected to be much lower than in recent years.   It was RESOLVED:   1.            That the MTFS principles, as outlined in paragraph 3.10 be re-approved. 2.            That, for modelling purposes, Council tax increases be set at the threshold assumed by the Government in the Fair Funding consultation in order to support the resilience of the Council’s finances as set out in paragraph 4.7.5. 3.            That the updated inflation assumptions used in the MTFS as set out in section 4.1 of the report be approved. 4.            That the impact of Fair Funding grant funding as set out in the report be noted, noting this could be subject to change following consultation feedback. 5.            That the approach to the ‘Balancing the Budget’ options as set out in section 4.10 be approved. 6.            That the Balancing the Budget options identified of £776K be noted (excluding the Fees and Charges estimates including taxi licence fees) to be presented to the October 2025 Cabinet and General Purposes Committee. 7.            That the Balancing the Budget target of £2.284Million, be approved for the period 2026/27- 2029/30, as set out in section 4.10 of the report. 8.            That the indicative General Fund borrowing costs for the Oval as set out in of the paragraph 4.10.3 (3) be approved and included in the MTFS. 9.            That the additional funding to be set aside in an earmarked reserve for the Council’s Queensway LLP of a further £50K per year, (paragraph 4.10.3 (6)) be approved. 10.         That the set aside of £150K per year to support the Council’s apprentice programme as set out in paragraph 4.10.3 (2) be approved. 11.         That the General Fund growth allowance of £75K be noted and approved for the use of the Council’s FTFC priorities. 12.         That a minimum level of balances for the General Fund of £3.57million be approved for 2026/27 as set out in paragraph 4.11.7. 13.         The MTFS be regularly reviewed and revised to reflect any material financial pressures, so forecasts are updated and re-presented to the Cabinet for approval. 14.         That the Trade Unions and staff be consulted on the key messages contained within the MTFS and more specifically when drawing up any proposals where there is a risk of redundancy.

Date of Decision: September 17, 2025