URL: https://councillors.knowsley.gov.uk/ieDecisionDetails.aspx?ID=8041

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 set out the context within which the Council should make decisions on its future financial strategy and the setting of the 2026/27 Revenue Budget.   Councillor Mrs J Lonergan, Cabinet Member for Resources, reported that the Council continued to show strong financial management, and for 2025/26 the Council delivered a balanced budget without cuts to jobs and services for the sixth consecutive year.   Councillor Lonergan reported that the Council had now received the final Local Government Finance Settlement which would cover not only next year but the following 2 years, which would help the Council to plan effectively in order to make long term decisions for Knowsley’s residents.   Councillor Lonergan highlighted that the Council, over the past couple of months, had engaged with Government having received the provisional settlement in early December, and this work had resulted in the council receiving substantial additional funding via a recovery uplift grant. In this respect, Councillor Lonergan indicated that this would see the Council receive a further £12.7m over the next 3 years and the additional resolutions circulated at the meeting provided an update on the Council’s overall position.   Councillor Lonergan reported that, due to the government writing off 90% of the high needs deficit next year, a deficit created by a system that did not work and introduced by the previous Government, the Council would have £2m additional funding in future years to support the Council’s change agenda.   In this respect, Councillor Aston moved an amended resolution for the Medium-Term Financial Strategy, and the amended resolution had been circulated at the meeting.             RESOLVED – That:-   (i)            the Government’s announcement that the Final 2026/27 Local Government Finance Settlement includes significantly improved funding for Knowsley Council which equates to 9.4% over the next 3 years was welcomed;   (ii)           that the three-year financial forecasts referred to in paragraph 7.1 of the report are revised as follows, be noted:-   Revised Medium-Term Financial Forecasts 2026/27 £m 2027/28 £m 2028/29 £m Forecast Budget Deficit 1.137 5.778 14.310   (iii)           that full details of the Final 2026/27 Local Government Finance Settlement, and the updated financial forecasts, will be provided in the medium-term financial strategy report to the Council on 4 March 2026.   (Note:  That 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.)  

Date of Decision: February 11, 2026