Issue - meetings

RESOLVED:

That Cabinet

1.     noted the revised MTFP forecasts, as outlined within the report and appendices 1 – 3;

2.     endorsed development of further options to close the budget gap for 2026/27 and through to 2029/30; and

3.     endorsed the approach taken to set the Asset Maintenance and Capital Programme Budgets for 2026/27, including the proposed approach for an enhanced Public Convenience renovation and maintenance programme over the next 2 years.

KEY DECISION:

No

PORTFOLIO:

Finance and Corporate

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None.

DISCUSSION:

The Portfolio Holder for Finance and Corporate introduced the item and explained that the latest changes in the Government’s funding calculations would impact on the New Forest District Council’s (NFDC) finances, with the four-year deficit expected to rise from £0.5m to £3.8m. The outcome of the Fair Funding Review appeared to favour urban areas and cities rather than rural areas. The additional £1.5m investment into the new waste service would, in the short term, be helped by the Extended Producer Responsibility funding to be received, with a further £1.2m anticipated in 2026/27. On pension costs, following the triannual review of the pension fund and the ongoing successful returns on investments, there would be a reduction in contributions required by the Council of £620,000 per annum, expected over the next 3 years. Overall, the Portfolio Holder reported that the Council remained in a strong financial position despite the various impacts.

The Assistant Director of Finance provided some further information on the report and the impacts on the General Fund over the next four years. He stated that the overall position had worsened due to the likely changes to Government financing which would be confirmed by the provisional local government financial settlement later in December 2025. He reported on the unfortunate likely removal  of separately identified New Burdens funding for food waste collection and commented on the new unfavourable methodology for funding of rural councils.

The Assistant Director for Finance explained that on Waste investment, there would be a likely increase in the Extended Producer Responsibility Funding from £1.75m to £2.4m, however future years cannot be guaranteed. There were some options to close the gap over the 4-year period but emphasis would be on maintaining strong financial management.

A non-Cabinet member referenced the Revenue Contribution to Capital Outlay and suggested exploring greater use of the Council capital fund to support local development and projects across the District. The Portfolio Holder for Finance and Corporate explained that NFDC had long-term commitments to meet and that there were various costs, such as the acquisition of new waste-trucks, that would take priority in order to remain responsible in handing over a sound financial position to the new authority