URL: https://democracy.middevon.gov.uk/ieDecisionDetails.aspx?ID=1341

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Cabinet had before it a report * from the Deputy Chief Executive (S151) and the Head of Finance, Property and Climate Resilience on the draft Budget 2026/27.   The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:   The update on the 2026/27 draft budget for the General Fund and Housing Revenue Account, highlighted the forecast shortfalls on the basis of what the Council currently knew, recognising that the Council were not likely to be aware of the full financial context until the funding allocation after the Chancellor’s national budget was received. To that end, Cabinet had deferred aspects of this report from the last meeting in order to seek greater clarity on the status and deliverability of the proposals put forward from the Policy Development Groups (PDG) that had been categorised as ‘amber’. As a result of this, the recommendation in the report was not to approve these savings, but to retain them in the budget planning process until this Council had greater certainty and confidence over the budget gaps that remained following upcoming national government statements on the reconfiguring of Council funding allocations. It was further highlighted that the potential of savings in economic development grants was overstated in the previous version that came to Cabinet and would be revised within future reports. This approach continued this administration’s commitment to financial responsibility and would allow time to assess the true extent of the funding shortfall before making amendments to budget options based on that position. The report also introduced the emerging 2026/27–2030/31 Capital Programme including expenditure profiles for consideration.  Members were reminded of the ongoing challenges due to significant funding uncertainties prevalent at this time.  Further updates were expected before the final budget approval decisions in February 2026.   RESOLVED that:   The amber budget options remained as budget planning assumptions until clarity was received following the Government financial settlement announcement and that was AGREED. Consideration and comments were given regarding the emerging Capital Programme covering the period 2026/27 to 2030/31 within Appendix 1a and 1b; There remained little clarity on the financial settlement currently and that this was likely to require additional ad hoc updates as and when greater information was known, particularly following the announcement of the Local Government Finance Settlement be NOTED.   (Proposed by Cllr J Downes and seconded Cllr S Keable)    Reason for Decision: By undertaking regular reviews of the Medium-Term Financial Plan, the Council could ensure that the Corporate Plan priorities were affordable. The implications of the budget gap were set out within the paper. Many areas required greater clarity, particularly around national funding and possible changes to Government Policy.   Note: *Report previously circulated      

Date of Decision: November 4, 2025