Updates on the council’s budget setting process for 2025/26 will be heard at a Cabinet meeting on 20 January.
In November, there was a budget gap of £17.351m, but with determined efforts across the council, and with the inclusion of the provisional Local Government Financial Settlement for the next financial year, the gap now stands at £3.299m. The Government has asked for all councils that are finding it difficult to balance their budget to make contact and we have done so.
Work to balance the budget will be ongoing in preparation for the annual Budget Council meeting on 27 February. The Local Government Finance Settlement will be finalised at the end of January when we will find out if we have received any additional funding which will help bridge the current gap.
The council has made an initial application for £13.909m in Exceptional Financial Support for 2025/26 which is line with the Medium Term Financial Strategy approved in March 2024, and does not increase the overall planned level of Capitalisation Direction, which remains at £348m. We will find out the decision on this in February.
Cabinet is asked to agree the budget proposals.
Councillor Dexter Smith, leader of the council, said: “Our challenging financial position is no secret and costs in certain areas such as adult social care and temporary accommodation keep going up significantly, with increasing demand. Everyone within the council is working hard to make savings, bring about efficiencies and to provide essential services for residents.
“We do need to make tough choices, but we will continue to put vulnerable residents at the heart of our decisions, while meeting our financial responsibilities.
“There will be much more work happening in the coming weeks to close the gap and create a balanced budget to put us on a more sustainable footing for the future.”
The meeting will also include an update on the Medium Term Financial Strategy 2025/26 to 2028/2029.
The meeting papers can be found online.
Future meetings to discuss the budget will include Cabinet on 17 February and Budget Council on 27 February.