Issue - meetings

This report provides guidance on setting the Council’s budget for 2026/27 and the following two years.

The Group received a report providing guidance on setting the Council’s budget for 2026/27 and the following two years.

Members discussed the following issues:

·                The possibility of borrowing to invest in capital projects to reduce the costs of maintenance of the Council’s assets which contribute to the forecasted revenue budget gap.

·                The possibility of selling some of the Council’s properties to raise the cash needed to maintain assets such as Bourne Hall and the Playhouse.

·                The reasons why the February MTFS budget deficit was significantly lower than the current figures, considering that the time between the two reports is only 4 months.

·                The question was asked as to what else can be done to improve the chances of success of achieving a sustainable balanced budget.

·                The possibility of the new local authority taking over the forecasted budget gap. Other councils in the area are reporting similar budget gaps, some councils have drafted only a year budget plan, it was noted that Epsom and Ewell Borough Council had produced a more comprehensive forecast and opted for a 3-year plan.

Following consideration of the above matters and the report’s contents, the Group moved to consider the report recommendations, which were agreed as follows:

To recommend to the Strategy and Resources Committee:

(1)       The amendment to the Medium Term Financial Strategy position and note the budget gap for the relevant years as set out in table 4.2;

(2)       The proposed Medium Term Financial Strategy is in line with council priorities, prudent and sets a framework for a strong financial control.

The Group also noted the following items:

(3)       The latest 2024/25 outturn position.

(4)       The latest reserves balance.

(5)       The budget reporting timetable in Appendix 2.