Issue - meetings

The Board received a report from the Director – Finance, which included an update on the Council’s Medium Term Financial Forecast for the period 2026/27 to 2030/31. The Medium-Term Financial Strategy set out the five-year projection of the Council’s resources and spending and was based on the most recent information that was currently available. The forecast showed that it was vital that a significant level of budget saving were achieved over the next five years, the scale of which would be extremely difficult to implement.

It was noted that the Government had confirmed that there would be significant and wide-ranging changes introduced to the local government finance system in 2026/27, known as the Fair Funding Review. The aim of the review was to target funding where it was most needed by using updated funding formulae to determine the different needs and costs faced by individual authorities, as well as their ability to raise revenue locally through Council Tax. A consultation was issued in June with a closing date of 15 August 2025. The potential impact of the Fair Funding Review for Halton was set out in Medium Term Financial Strategy at Appendix 1.

Reason(s) for Decision

To seek approval for the Council’s Medium Term Financial Strategy for 2026/27 to 2030/31.

Alternative Options Considered and Rejected

The alternative option of not maintaining a MTFS had been considered. However, this would not follow good financial management practice, as the MTFS was a key element in informing the Council’s financial planning and budget setting processes.

Implementation Date

1 April 2026.

RESOLVED: That

1)    the Medium-Term Financial Strategy presented in Appendix 1, be approved;

2)    the 2026/27 base budget be prepared on the basis of the underlying assumptions set out in the Strategy;

3)    the Reserves and Balances Strategy presented in Appendix 2 be approved; and

4)     the award of Council Tax Support for 2025/26 remains at the 2025/26 level of 21.55%.