For the Executive to consider a report on budget proposals 25/26 and the MTFS.

That the Executive:

(1)       Approves the 2025/28 proposed budget strategy, including the 2025/26 draft revenue budget and the 2026/28 MTFS, noting that the draft income and savings proposals are included for the purposes of informing the Executive of the intended consultations which will be undertaken (where necessary and/or required).

(2)       Notes the draft proposal to increase Council Tax by 4.99% in 2025/26 (comprising 2.0% adult social care precept and 2.99% general increase) and by 2.99% (comprising 1% adults social care precept and 1.99% general increase) for the remaining years of the MTFS 2026/28.

(3)       Notes that the draft proposals are subject to various consultation exercises, further analysis of reserves, savings and income including impact assessments, potential future movements in core funding and specific grants, revised costings and robustness assessments and that these proposals will be subject to a future decision making process which will include a referral to the Scrutiny Committee for their consideration.

(4)       Notes the assumptions made in setting the MTFS in Section 4 and the degree of uncertainty as detailed in the report.

(5)       Notes the remaining budget gap for the years 2026/27 to 2027/28 as identified in the report.

(6)       Notes the commentary of the Director of Finance and Systems, the Council’s statutory S151 officer, regarding the financial sustainability of the Council contained in Section 1 of the report.

(7)       Notes that the bidding process for Capital Programme is ongoing and the prioritisation process to be undertaken to compile an affordable capital programme 2025/26 to 2027/28.

(8)       Notes the continued use of flexible use of capital receipts to support in part the cost of the Modernisation Team in developing the Council’s Finance and Change Programme for 2025/26.

The Executive Member for Finance, Change and Governance and the Director of Finance and Systems submitted a report setting out the Council’ budgetary position, providing details of historical context and rationale for the identification of budget proposals to be further developed to address future financial gaps. The report contained the Executive’s updated 3-year budget strategy proposals and included the draft revenue budget proposals for 2025/26 and the Medium-Term Financial Strategy (MTFS) for the period 2026/28.

The Executive Member for Highways, Environmental and Traded Services spoke to assure members on actions to maintain school crossing patrols, contrary to recent media speculation.

In discussion, queries were raised regarding a range of issues, including: the historic funding position, lobbying and comparators with closest statistical neighbours; the robustness of the financial proposals; significant financial pressures and growing pressures in the High Needs Block; and the Manchester Airport dividend.

In the absence of the Executive Member for Healthy and Independent Lives and the Director of Public Health, Councillor Evans’ queries on the savings on Public Health Grant Maximisation and the Public Health Reserve given the deficit reported in the last budget monitor and a suggestion that this would be recovered from the NHS, would need to be revisited. Councillor Welton queried whether the use of the Public Health Grant could be reviewed and the Leader of the Council suggested that a review of preventative measures could be addressed through the scrutiny process. Councillor Welton also could not find mention of the review of parking charges mentioned the previous year and information on that was to be provided to him.

RESOLVED: That the Executive:

(1)       Approves the 2025/28 proposed budget strategy, including the 2025/26 draft revenue budget and the 2026/28 MTFS, noting that the draft income and savings proposals are included for the purposes of informing the Executive of the intended consultations which will be undertaken (where necessary and/or required).

(2)       Notes the draft proposal to increase Council Tax by 4.99% in 2025/26 (comprising 2.0% adult social care precept and 2.99% general increase) and by 2.99% (comprising 1% adults social care precept and 1.99% general increase) for the remaining years of the MTFS 2026/28.

(3)       Notes that the draft proposals are subject to various consultation exercises, further analysis of reserves, savings and income including impact assessments, potential future movements in core funding and specific grants, revised costings and robustness assessments and that these proposals will be subject to a future decision making process which will include a referral to the Scrutiny Committee for their consideration.

(4)       Notes the assumptions made in setting the MTFS in Section 4 and the degree of uncertainty as detailed in the report.

(5)       Notes the remaining budget gap for the years 2026/27 to 2027/28 as identified in the report.

(6)       Notes the commentary of the Director of Finance and Systems, the Council’s statutory S151 officer, regarding the financial sustainability of the Council contained in Section 1 of the report.

(7)       Notes that the bidding process for Capital Programme is ongoing and the prioritisation process to be undertaken to compile an affordable capital programme 2025/26 to 2027/28.

(8)       Notes the continued use of flexible use of capital receipts to support in part the cost of the Modernisation Team in developing the Council’s Finance and Change Programme for 2025/26.