URL: https://democracy.lichfielddc.gov.uk/ieDecisionDetails.aspx?ID=814

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Purpose: To approve and recommend to Council:   •           The MTFS including the Revenue Budget and Capital Programme. •           The MRP Policy. •           Treasury Management Strategy. •           Prudential Indicators.

Content: To approve and recommend to Council:   •           The MTFS including the Revenue Budget and Capital Programme. •           The MRP Policy. •           Treasury Management Strategy. •           Prudential Indicators. Cabinet:   2.1 Cabinet delegated to the Cabinet Member for Finance and Commissioning and the Director – Finance, Regulation and Enforcement (Section 151) responsibility to update the MTFS prior to Council to reflect any significant changes in the Final Local Government Finance Settlement for 2026/27.   Cabinet recommended to Council for approval:   2.2 The 2026/27 Revenue Budget of £16,147,000, Council Tax Requirement of £8,502,000 and a District Council proposed Band D Council Tax for 2026/27 of £201.79 (an increase of £3.94 or 1.99%).   2.3 The MTFS 2025-30 Revenue Budgets and 25-year revenue financial planning model set out in APPENDIX A including the approach to budget pressures, additional income, specific grants and spend plans, potential forward funding of capital projects, the pay award in 2026/27 and Treasury Management income.   2.4 The MTFS 2025-30 Capital Strategy including the 25-year capital investment model and the Capital Programme shown in APPENDICES B & C including the recommended approach to funding Business-asUsual Capital Investment in 2029/30.   2.5 The Minimum Level of General Reserves remaining at £2,000,000.   2.6 The updated Corporate Fees and Charge Policy at APPENDIX E.   2.7 The Minimum Revenue Provision Statement for 2026/27, at APPENDIX F, which sets out the Council’s policy of using the asset life method for making prudent provision for debt redemption.   2.8 Treasury Management Strategy Statement for 2026/27 at APPENDIX G.   2.9 The Investment Strategy Report at APPENDIX H where no changes are recommended for 2026/27.   2.10 The Capital and Treasury Prudential Indicators for 2025-30 in the financial implications section.   2.11 The Authorised Limit Prudential Indicator shown within the financial implications section.   Cabinet noted:   2.12 The requirements and duties that the Local Government Act 2003 places on the Authority on how it sets and monitors its Budgets, including the CFO’s report on the robustness of the Budget and adequacy of Reserves shown in APPENDIX D.   2.13 The results of the Budget Consultation summarised at APPENDIX I 1.1 The ability to deliver the outcomes set out in Lichfield District 2050 is in part dependent on the resources available in the MTFS. The longer-term aspirations of this strategy, however, are constrained by Local Government Reorganisation due to be implemented from 1 April 2028 and guidance from the Government on financial decisions in the interim.   1.2 The Council received a letter from the Government outlining the approach to be taken on financial decisions before Local Government Reorganisation is implemented.   1.3 The MTFS was approved by Council on 25 February 2025, and this is refreshed each year to: •       Remove the previous financial year and in this MTFS this is 2024/25. •       Formally add the new financial year and in this MTFS this is 2029/30. •       Refresh and update assumptions to reflect the latest information available.   1.4 The MTFS is the overall budget framework and consists of the Revenue Budget, Capital Strategy and Capital Programme, Earmarked Reserves and General Reserves.   1.5 There have been reports to Cabinet and Council that have updated the MTFS since its initial approval.   1.6 The Treasury Management Strategy Statement and Annual Investment Strategy are also important components of the MTFS. These components, under the Constitution are the responsibility of the Audit Committee and will be considered by that Committee as part of the development of the MTFS   1.8 The level of uncertainty surrounding the Local Government Finance regime has reduced significantly with the publication of the Provisional Local Government Finance Settlement covering the three-year period 2026/27 to 2028/29.   1.9 The Council has a statutory duty to undertake budget consultation, set a balanced budget and to calculate the level of Council Tax for its area In the main, the options are focused on the level of resource allocated to Strategic Priorities, the strategy to be utilised to achieve a balanced budget and the level of Council Tax increase.

Date of Decision: February 10, 2026