Issue - meetings

Report of Assistant Director of Finance (Section 151 Officer)

Purpose of the report

This report is to inform the Committee of the proposed approach to the 2026/27 Budget Process, as approved by the Executive at its meeting 2 September 2025.  The report provides context and background information on the existing Medium-Term Financial Strategy and information on latest government announcements relevant to the Strategy.

Recommendations

The Budget Planning Committee resolves:

1.1         To note the Budget Process for 2026/27.

1.2         To note the base assumptions to be used for the 2026/27 budget.

1.3         To note that a five-year period for the Medium-Term Financial Strategy to 2030/31 and five-year period for the Capital Programme to 2030/31 has been set.

Resolved

(1)        That the Budget Process for 2026/27 be noted.

(2)        That the base assumptions to be used for the 2026/27 budget be noted.

(3)        That it be noted that a five-year period for the Medium-Term Financial Strategy to 2030/31 and five-year period for the Capital Programme to 2030/31 has been set.

The Assistant Director of Finance (Section 151 Officer) submitted a report to inform the Committee of the proposed approach to the 2026/27 Budget Process, as approved by the Executive at its meeting 2 September 2025. The report provided context and background information on the existing Medium-Term Financial Strategy (MTFS) and information on latest Government announcements relevant to the Strategy.

The Portfolio Holder for Finance, Property and Regeneration advised that there was an uncertainty in Government funding for 2026/27 and beyond, however, the Government had committed to providing a 3-year settlement. The Provisional Financial Settlement was not expected until late November 2025.

The Portfolio Holder for Finance, Property and Regeneration reported that the Government had consulted on phased relief and the use of ‘funding floors’. The planning assumption in the MTFS as at February 2025 was for the Fairer Funding formula and a reset of business rates to be phased over three years, beginning in 2026/27. That would remain until the Government provided a policy statement in October 2025.

In response to a Committee question asking for clarification on the funding floor, the Head of Finance explained that in the consultation, the Government had advised some Councils would be in a category of 0% floor and others would be in a minus 5 to minus 7% floor, The Head of Finance confirmed that Cherwell was proposed to be in the minus 5 to minus 7% floor. The Council’s response on this aspect of the consultation was that all Councils should be included in the 0% floor category.

In response to a Committee comment regarding  the process and that non-Budget Planning Committee  members  would not have an opportunity to  comment on the budget until it was discussed at Full Council in February 2026, the Portfolio Holder for Finance, Property and Regeneration advised that budget setting was  following the timetable that had been followed in previous years and this included meetings for Group Leaders.

Resolved

(1)      That the Budget Process for 2026/27 be noted.

(2)      That the base assumptions to be used for the 2026/27 budget be noted.

(3)      That it be noted that a five-year period for the Medium-Term Financial Strategy to 2030/31 and five-year period for the Capital Programme to 2030/31 has been set.