Agenda item

To approve the Medium Term Financial Strategy 2026/27 – 2029/30.

 

Councillor Z Hannington, Cabinet Member for Finance, Governance and Customer Services, presented the report of the Director for Finance, People and IDT, which sought approval of the Council’s Medium-Term Financial Strategy for the four years 2026/27 to 2029/30.

 

This overview report, along with the following linked reports on the agenda:

 

·The Capital Strategy

· The Medium-Term Capital Programme

· The Investment Strategy

· The Treasury Management Strategy and

· The Prudential Indicators report

 

Together, these reports formed the Council’s overall Medium-Term Financial Strategy for the next four years and the budget framework for 2026/27.

 

The report built on the MTFS report considered at Cabinet on 6 January 2026 which had been subject to public consultation and scrutiny by members of the Council’s cross-party Business and Finance Scrutiny Committee since that date. The January report was itself an update of the Council’s four-year MTFS approved at full Council on 27 February 2025, and this report remained consistent both with that strategy and the approach to prudent and successful financial management exercised by the Council for many years throughout an unprecedented and protracted period of severe financial constraint. 

 

In accordance with the Local Authorities (Standing Orders) (England) Amendment) Regulations 2014, a recorded vote was taken on the recommendations as follows:

 

For (44)

 

Councillors E Aston, K T Blundell, M Boylan, A J Burford, E Callear, L D Cater, C Chikandamina, E Davies, P Davis, F Doran, A England, N England, S Handley, Z Hannington, C Healy, T Janke, A Jhawar, J Jones, J Kaur, L Lewis, G Luter, A D McClements, R Mehta, K Middleton, H Morgan, R A Overton, N Page, L Parker, I Preece, S A W Reynolds, S J Reynolds, H Rhodes, R Sahota, P J Scott, S Syrda, P Thomas, B J Thompson, K Tomlinson, W L Tomlinson, K Tonks, J Urey, O Vickers, P R Watling and D R W White

 

Against (0)

 

Abstentions (5)

 

Councillors S P Burrell, N A Dugmore, A J Eade, T J Nelson and R Tyrrell.

 

RESOLVED that the following, be noted:

 

a)            The Councils priorities to deliver its vision to protect, care and invest to create a better Borough:

·         Every child, young person and adult lives well in their community

·         Everyone feels the benefit from a thriving economy

·          All neighbourhoods are a great place to live

·         Our natural environment is protected, and the Council is taking a leading role in addressing the climate emergency

·         A community focussed innovative council providing efficient, effective and quality services.

 

b)           A proposed Council Tax increase for 2026/27 of £1.20 per week for the average Band B home, supporting investment in social care services, would continue to see Telford and Wrekin Council have the lowest Council Tax in the Midlands for the services it provided, and one of the lowest in the country.

 

c)            The continued strong track record of sound financial management of the Council, which included delivery of a balanced budget for over 17 years.

 

d)           That 70 pence in every £1 the Council spent was allocated to Social Services.

 

e)            That a number of the investments made in this report, such as Nuplace and the Growth fund, also generated a financial benefit, as well as fulfilling their primary purpose, which was invested in front line services. This was equivalent to provision of over 585,000 home care hours or over six million £2 bus fare rides.

 

f)             The savings of £195.3m, delivered since 2009/10 as a result of reduced government funding from 2011, whilst the cost and demand for many Council services had been increasing and in particular for Adult Social Care.

 

g)           The changes to the Local Government Finance Settlement, which were welcomed by the Council, with the implementation of the Fair Funding Review 2.0 for 2026/27, which included a multi-year settlement and an updated formula that incorporated updated data for deprivation and population which would better reflect needs.

 

h)           The changes to the Business Rates System, effective from 1st April 2026, which introduced three new multipliers as well as a reset of the system and a revaluation.

 

i)             National and international economic pressures, which had resulted in a challenging financial outlook with interest rates and inflation remaining higher than Bank of England forecasts.

 

 

RESOLVED, that the following be approved.

 

(i)           The Medium-Term Financial Strategy (MTFS) for 2026/27 to 2029/30 and the budget framework for 2026/27, as set out in this suite of reports.

 

(ii)          A Council Tax increase of 4.99% for 2026/27, which included the Government’s 2% Adult Social Care precept, equivalent to £0.72 per week general Council Tax increase for the average Band B property and £0.48 per week for the ASC precept, which would be fully invested in the provision of social care services for the most vulnerable members of the local community.

 

(iii)        The net investment of £15.8m into Adult Social Care and £2.7m in Children’s Safeguarding in 2026/27.

 

(iv)        The budget savings listed at Appendix 9 with a total of £19.1m ongoing savings, which included new savings of £9.3m in 2025/26 and £11.4m in 2026/27.

 

(v)          The continuation of work with partner organisations, which included Town and Parish Councils and Voluntary Sector and Community Groups, to seek to identify ways to mitigate the impact of some of the cuts to services that the Council Could no longer afford to deliver and to note the availability of the Invest to Save/Capacity Fund which was available to support partnership working.

 

(vi)        The base budget, as set out at Appendix 7.

 

(vii)       The policy framework for Reserves and Balances and their planned use as outlined in Appendix 5.

 

(viii)     The Strategic Risk Register at Appendix 13.

 

(ix)        The endorsement of the Council Tax Reduction Scheme, a link to which was included within Appendix 15, ready for implementation from 1 April 2026.

 

(x)          The continuation of the Council Tax Reduction Hardship Assistance Policy, also within Appendix 15.

 

(xi)        The revenue implications of the medium-term Capital Programme for the period 2026/27 to 2029/30, as set out in the Capital Strategy and Programme reports also on this agenda.

 

(xii)       That authority be delegated to the Director of Finance, People and IDT, following consultation with the Cabinet Member for Finance, Governance and Customer Services, to action any virements required following the final allocation of the Dedicated Schools Grant and other Grants and following the completion of the NNDR1 and final estimates of Business Rates income.

 

(xiii)     That authority be delegated to the Director of Finance, People and IDT to take all necessary steps to implement any future new NNDR reliefs which are fully funded by the Government and introduced under the Council’s Discretionary powers.

 

(xiv)     That authority be delegated to the Director of Adult Social Care, following consultation with the Cabinet Member for Adult Social Care and Health Integration and Transformation, to enter into appropriate Section 256 and Section 75 Agreements under the NHS Act 2006 (as amended).

 

(xv)       That authority be delegated to the Director of Policy and Governance to execute all necessary contract documentation, which included affixing of the common seal of the Council as appropriate to enable the Council to enter into appropriate Section 256 and Section 75 Agreements under the NHS Act 2006 (as amended).

 

(xvi)     This suite of MTFS reports as the Council’s Efficiency Strategy for 2026/27, which included the documentation at Appendix 12, to enable new capital receipts to be used to fund the revenue costs of transformation and efficiency projects as assumed throughout these reports.

 

(xvii)    That authority be delegated to the Director of Finance, People and IDT, following consultation with the Cabinet Member for Finance, Governance and Customer Services, to amend the use of the contingency in 2026/27 and to make any other associated adjustments to accommodate any difference in funding between that currently assumed and final grant allocations when received.

 

(xviii)  That authority be delegated to the Director of Finance, People and IDT, following consultation with the Cabinet Member for Finance, Governance and Customer Services, to make changes to the Medium-Term Financial Strategy with immediate effect to reflect all grants received from Government with authority to incur associated spend.

 

(xix)     The Pay Policy for 2026/27 included as Appendix 16.

 

(xx)       The additional recommendations contained in other reports, included in this suite of Medium-Term Financial Strategy reports on this agenda.