Issue - meetings

This report informs the Committee of the Council’s revenue budget targets presented to the Strategy & Resources Committee in July. The report seeks guidance on the preparation of the Committee’s service estimates for 2026/27.

Following consideration, the Committee resolved:

Unanimously to:

(1)      Note the implications of the budget targets presented to Strategy & Resources Committee on 15 July 2025.

(2)      Note that owing to the Council’s projected budget deficit, any additional new revenue growth items (i.e. service enhancements resulting in increased net expenditure) supported by Policy Committees will need to be fully funded from existing budgets.

With 6 votes for, 1 abstention, and the Chair not voting, to:

(3)      Consider how additional income or savings can be generated to address the projected Council wide funding gap of £1.93 million in 2026/27, rising to £5.06 million per annum by 2028/29.

The Committee received a report informing them of the Council’s revenue budget targets presented to the Strategy & Resources Committee in July. The report was seeking guidance on the preparation of the Committee’s service estimates for 2026/27.

The following matters were considered:

a)            2027/28. A Member of the Committee raised that in recommendation 3,  it sets out that the projected Council wide funding gap for 2026/27 is £1.93 million, rising to £5.06 million per annum by 2028/29. The Member asked where the projection for 2027/28 is. The Senior Accountant informed the Committee that the information on 2027/28 could be found in the Medium-Term Financial Strategy report.

b)            Budget Deficit. A Member of the Committee asked how the Council was expecting such a huge deficit and where things had gone wrong. The Member asked what is responsible for such a huge projected deficit. The Vice Chair raised that it is important to note that the Council has not got things wrong and is merely forecasting things and then adjusting in light of actual expenditure. The Senior Accountant explained that one of the biggest pressures the Council is facing at the moment is the overspend on Temporary Accommodation and Housing. The Senior Accountant noted that this is not an Epsom and Ewell specific issue, and councils all over the country as struggling with rising cost of temporary and nightly-paid accommodation. The Member asked for more information on the cost and number of temporary accommodation the Council is currently experiencing. The Senior Accountant explained that there are lots of pressures surrounding housing issues in the borough. The Vice Chair raised that they would be happy to meet with the Member and discuss the issue of temporary accommodation, as the Chair of Strategy and Resources. The Vice Chair also raised that the issue of homelessness and temporary accommodation situation is reported regularly to both Community and Wellbeing Committee and Strategy and Resources Committee. The Chair raised that the relevant figures and reports could be shared with the Member following the meeting. The Member thanked the Chair and Vice Chair and agreed to receive further relevant information following the meeting.

Following consideration, the Committee resolved:

Unanimously to:

(1)      Note the implications of the budget targets presented to Strategy & Resources Committee on 15 July 2025.

(2)      Note that owing to the Council’s projected budget deficit, any additional new revenue growth items (i.e. service enhancements resulting in increased net expenditure) supported by Policy Committees will need to be fully funded from existing budgets.

With 6 votes for, 1 abstention, and the Chair not voting, to:

(3)      Consider how additional income or savings can be generated to address the projected Council wide funding gap of £1.93 million in 2026/27, rising to £5.06 million per annum by 2028/29.