Agenda item

Medium Term Financial Plan 2025/26 - 2029/30

Report of Councillor P R Kerry, Deputy Leader of the Council and Portfolio Holder for Strategic Leadership and Finance

Decision:

RESOLVED

 

1.     That all recommendations below are referred to the Council meeting of 26 January 2026.

 

The following recommendations to Council are made:

 

2.     That the view of the Director of Finance & Resources, that the  estimates included in the Medium-Term Financial Plan 2025/26 to 2029/30 are robust and that the level of financial reserves are adequate at this time, is accepted.

 

3.     That officers report back to Cabinet and the Services Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.

 

General Fund

 

4.     A Council Tax increase of £6.48 will be levied in respect of a notional Band D property (2.99%).

 

5.     The Medium-Term Financial Plan in respect of the General Fund as set out in Appendix 1 of this report was approved as the Current Budget 2025/26, as the Agenda Item 4 Original Budget 2026/27, and as the financial projections in respect of 2027/28 to 2029/30.

 

6.     That the General Fund Capital Programme as set out in Appendix 4 was approved as the Current Budget in respect of 2025/26, and as the Approved Programme for 2026/27 to 2029/30.

 

7.     That budget under spends be transferred to the Resilience Reserve to provide increased financial resilience for future years of the plan.

 

Housing Revenue Account (HRA)

 

8.     That Council set its rent levels for 2026/27 in consideration of the Social Housing Rent Standard increasing rents by 4.8% from 1st April 2026.

 

9.     The Medium-Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 of this report was approved as the Current Budget in respect of 2025/26, as the Original Budget in respect of 2026/27, and the financial projection in respect of 2027/28 to 2029/30.

 

10. That the HRA Capital Programme as set out in Appendix 4 was approved as the Current Budget in respect of 2025/26, and as the Approved Programme for 2026/27 to 2029/30.

 

11. That the Management Fee for undertaking housing services at £13.962m and the Management Fee for undertaking capital works at £1.1m to Rykneld Homes in respect of 2026/27 was approved.

 

12. That Members noted the requirement to provide Rykneld Homes with a ‘letter of comfort’ to the company’s auditors and granted delegated authority to the Council’s Director of Finance & Resources (S151 Officer) in consultation with the Deputy Leader of the Council to agree the contents of that letter.

 

This was not a Key Decision and so can be implemented with immediate effect by officers.

Minutes:

Cabinet considered a report seeking approval of the Current Budget for 2025/26 and Original Budget for 2026/27 for the General Fund, Housing Revenue Account and Capital Programme as part of the Council’s Medium Term Financial Plan covering the years 2025/26 to 2029/30.  The report made a number of recommendations proposing to be taken by Council on 26 January 2025. 

 

With the agreement of the Leader, the report recommendations were considered and taken in two parts. Cabinet would consider recommendations 1-7 (relating to the General Fund) followed by recommendations 8-12 (relating to the Housing Revenue Account).

 

Cabinet considered the report and recommendations 1-7. Some Members suggested that the proposed council tax increase was sensible, necessary for services to be fully funded and provided resilience for future years. Cabinet agreed to pass recommendations 1-7.

 

Councillor K Gillott left the meeting

 

Cabinet considered the report and recommendations 8-12. It was highlighted that the proposed rent levels would allow for contingency and resilience. Some Members suggested that it wasn’t an easy decision to increase rents, however it was a necessary decision as additional costs were approaching and there was a need for contingency. Some Members highlighted that Rykneld Homes had achieved a C1 score from the regulator and expressed positivity at the level of service provided. Cabinet agreed to pass recommendations 8-12.

 

RESOLVED –

 

  1. That all recommendations below are referred to the Council meeting of 26 January 2026.

 

The following recommendations to Council are made:

 

  1. That the view of the Director of Finance & Resources, that the estimates included in the Medium Term Financial Plan 2025/26 to 2029/30 are robust and that the level of financial reserves are adequate at this time, is accepted.

 

  1. That officers report back to Cabinet and the Services Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.

 

General Fund

 

  1. A Council Tax increase of £6.48 will be levied in respect of a notional Band D property (2.99%).

 

  1. The Medium-Term Financial Plan in respect of the General Fund as set out in Appendix 1 of the report was approved as the Current Budget 2025/26, as the Original Budget 2026/27, and as the financial projections in respect of 2027/28 to 2029/30.

 

  1. That the General Fund Capital Programme as set out in Appendix 4 was approved as the Current Budget in respect of 2025/26, and as the Approved Programme for 2026/27 to 2029/30.

 

  1. That budget under spends be transferred to the Resilience Reserve to provide increased financial resilience for future years of the plan.

 

 

Housing Revenue Account (HRA)

 

  1. That Council set its rent levels for 2026/27 in consideration of the Social Housing Rent Standard increasing rents by 4.8% from 1st April 2026.

 

  1. The Medium-Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 of the report was approved as the Current Budget in respect of 2025/26, as the Original Budget in respect of 2026/27, and the financial projection in respect of 2027/28 to 2029/30.

 

  1. That the HRA Capital Programme as set out in Appendix 4 be approved as the Current Budget in respect of 2025/26, and as the Approved Programme for 2026/27 to 2029/30.

 

  1. That the Management Fee for undertaking housing services at £13.962m and the Management Fee for undertaking capital works at £1.1m to Rykneld Homes in respect of 2026/27 be approved.

 

  1. That Members noted the requirement to provide Rykneld Homes with a ‘letter of comfort’ to the company’s auditors and granted delegated authority to the Council’s Director of Finance & Resources (S151 Officer) in consultation with the Deputy Leader of the Council to agree the contents of that letter.

 

This was not a Key Decision.

 

 

Councillor K Gillott returned to the meeting

Supporting documents: