Issue - meetings

A report outlining the financial framework for the 2025/26 MTFS refresh for consideration.

Cabinet Portfolio Holder – Councillor Peter Butlin

Councillor Peter Butlin, Deputy Leader, Finance and Property, introduced the report which detailed the emerging financial position of the Council. He highlighted that Warwickshire County Council were one of the few local authorities that produced a five year Medium Term Financial Strategy (MRFS) on a rolling basis.  This report took into account the current situation for local government finances.

Councillor Butlin drew Members attention to paragraph 2.1 of the report which outlined the key components to the framework which aimed to ensure that the Council’s finances were robust, sustainable and financially resilient.  In addition, the key strategic principles on which the 2025/26 MTFS would be developed were highlighted at paragraph 2.4 of the report.  These included expectations for inflation and the savings needed to be delivered over future years.

Councillor Holland spoke to the report and queried the different use of references to RPI or CPI inflation.  He felt that the best way to fund public services was to encourage economic growth and increase productivity.

Councillor Jerry Roodhouse referred to the continued financial challenges facing SEND and transport services, suggesting that Principle 3 on page 14, could be defined further to reflect this.  In relation to Principle 5, Councillor Roodhouse stated that he would like to see how the Council would prioritise those projects that may have to be paused or stopped due to increased cost pressures. 

In response to the comments made, Councillor Butlin expanded on Principle 3 and the ambition for a three-year financial settlement.  With regards to the prioritisation of projects, he assured that consultation would be extensive.  He concluded by reiterating the difficulties that all local authorities were experiencing with finances now and the challenges that lay ahead.

Having proposed the recommendations as laid out, it was

Resolved

That Cabinet

1)    note the emerging financial position within which the 2025/26 budget and 2025-30 Medium-Term Financial Strategy will be developed;

2)    agree the strategic principles that will form the basis of the Medium-Term Financial Strategy, as set out in paragraph 2.4;

3)    subject to the agreement of the principles, approve the proposals for the refresh of the 2025/26 Medium-Term Financial Strategy and Capital Strategy, as set out in Sections 2 and 3;

4)    note the requirement for the Authority to set a sustainable and balanced budget which shows how income will equal expenditure over the short- and medium-term; and

5)    approve the timetable for agreeing the 2025/26 budget and Medium-Term Financial Strategy Refresh.