Issue - meetings

a) Approved the Medium-Term Financial Plan (MTFP) 2026–2031 as set out in Appendix A, along with the financial assumptions and modelling used to forecast resources and pressures over the MTFP period.

b) Noted the projected budget gap of £531k in 2026/27 and the cumulative gap of £2.41 million through to 2030/31.

c) Noted the adequacy of General Fund balances and the ongoing review of grants and reserves, with outcomes to be reported as part of the 2026/27 budget report later in the year.

d) Noted the financial planning framework and timetable for future reporting and decision-making.

The Executive Member for Financial Sustainability presented the Medium-Term Financial Plan 2026-2031. The Executive Member advised that despite uncertainty around Local Government Reorganisation, the Council was required to produce a financial plan, which sought to provide a balanced budget by 2028. It was noted that Government funding levels remained unknown which made budgeting largely speculative. Members heard that a cautious approach had been adopted to model worst-case scenarios and prepare accordingly.

Members heard that the Government’s Fair Funding review had been a key development, with the Council anticipating a funding reduction of over £2 million across three years. This raised concerns about the district’s areas of need and the council’s limited flexibility to raise income to compensate the funding gap.

Members noted that the budget-setting timetable was outlined in section 8 of the report, with updates planned as new information emerged.

The Executive Member for Financial Sustainability proposed that the amended recommendation be supported. Councillor Goldspink seconded the proposal.

The Leader of the Council thanked officers for the report acknowledging the high-quality presentation, background detail and graphics included.

The Leader of the Council queried the table on page 272 of the report, which detailed EV charge income on Council premises, noting that income appeared to drop after 2026/27. Officers clarified that this was not a reduction and Member heard that there was £25,000 of new income expected in 2026/27, followed by an additional £15,000 in 2027/28, bringing the total to £40,000.

Councillor Devonshire raised a concern regarding the fairness of business rate retention, noting that East Herts had only retained 9% due to being considered a high-revenue area. Members heard that the Government was reviewing the business rates system, however it was unlikely to provide an improved position.

The Executive Member for Corporate Services expressed disappointment at repeatedly facing budget constraints, wishing instead to focus on positive initiatives for the community. The Executive Member commented on the lack of financial clarity surrounding Local Government Reorganisation (LGR), which had demanded significant officer time without adequate funding. Members noted that an update from the Government was expected following the autumn budget in late November 2025.

The motion to support the recommendation, having been proposed and seconded, was put to the meeting and upon a vote being taken, was declared CARRIED.

RESOLVED – that (A) the Medium-Term Financial Plan (MTFP) 2026–2031, as set out in Appendix A, along with the financial assumptions and modelling used to forecast resources and pressures over the MTFP period, be approved;

(B)   the projected budget gap of £531k in 2026/27 and the cumulative gap of £2.41 million through to 2030/31, be noted;

(C)   the adequacy of General Fund balances and the ongoing review of grants and reserves, with outcomes to be reported as part of the 2026/27 budget report later in the year, be noted; and

(D)   the financial planning framework and timetable for future reporting and decision-making, be noted.