URL: https://councillors.knowsley.gov.uk/ieDecisionDetails.aspx?ID=8043

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: The Cabinet considered the report of the Executive Director (Resources) which, along with the accompanying items being considered at the meeting, provided information and financial strategy planning assumptions for the Cabinet to consider in developing its revenue budget proposals to the Council.   Councillor Mrs J Lonergan, Cabinet Member for Resources, reported that the Council’s Growth Strategy had boosted the Tax Base by 21% over the past 10 years and has secured an extra £1.3m of permanent funding next year. In this respect, Councillor Lonergan indicated that the Council needed to increase Council Tax in line with the Government’s funding assumptions, although it would be preferred not to. However, to not increase Council Tax in line with the Government’s funding assumptions, the Council would lose £4 million of funding every year, forcing the Council to make cuts to services this year and in future years.   Councillor Lonergan reported that the forecasts confirmed that £29m of permanent investment would be required to sustain the Council’s services in the face of growing demand and rising prices. In this respect, Councillor Lonergan highlighted that this investment included £12.2m for demand in Adult and Children’s Social Care, SEND and home to school transport, £3.9m to boost capacity in Children’s Services, and £4.5m to help with social care market stability, including the Council’s continued commitment to the Real Living Wage for care providers.   Councillor Lonergan highlighted that significant risks remained for future years that required a strategic, long?term response and the Council was facing increases in demand and costs in Social Care, particularly Children’s Services, which required the need to continually plan for the long?term and beyond this 3-year period.   Councillor Lonergan indicated that the Council’s forecasts ensured that, wherever possible, resources would be directed towards ensuring financial stability. In this respect, the Council must ensure that its General Balances were sufficient to meet future risks, and it was proposed to increase General Balances to 6% of the Council’s budget and keep those under review in future years if the Council’s risks increased.   Councillor Lonergan also highlighted that the Council would implement a Transformation Programme to focus on demand reduction, service improvement and the reallocation of existing resources to reduce costs and improve services for Knowsley’s residents.   Councillor Lonergan highlighted that the report confirmed that the Council had again been in a strong financial position as a result of its commitment to financial management and long-term decision-making. In this respect, Councillor Aston moved an amended resolution for the 2026/27 Revenue Budget, and the amended resolution had been circulated at the meeting.   RESOLVED – That:-   (i)            the shortfall referred to in paragraph 5.1 of the report which must be addressed in order to set a balanced budget for 2026/27 is now £1.137m;   (ii)           the overall surplus in 2026/27 as referred to in paragraph 5.7 of the report is now £1.543m;   (iii)          the Cabinet’s budget proposals will result in improvements to the Council’s medium-term financial forecasts identified in paragraph 5.9 of the report as follows:-   Revised Medium-Term Financial Forecasts (based on Cabinet budget proposals) 2026/27 £m 2027/28 £m 2028/29 £m Forecast Budget (Surplus) / Deficit balanced 1.098 8.130   (iv)          the £0.736m of one-off resources available for investment, as referred to in paragraph 7.1.6 of the report, along with the further £1.543m arising from resolution b) above (£2.279m in total), be set aside as a Transformation and Financial Sustainability fund; and    (v)           the implications of the Final Local Government Finance Settlement for 2026/27 will be reflected in the 2026/27 Budget Setting Report to the Council on 4 March 2026.   (Note:  That -   (i)            in accordance with the provisions of Section 28(2) of the Localism Act 2011, and the Council’s Code of Conduct for Elected and Co-opted Members, Councillor Mrs D Arnall declared a Disclosable Pecuniary Interest in the above item but, having received a dispensation from the Monitoring Officer, remained in the meeting, took part in the discussion and voted thereon; and   (ii)          in accordance with the requirements of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, it be noted that all those Members present at the meeting, as set out at the start of these minutes, voted in favour of the above resolution.)  

Date of Decision: February 11, 2026