Agenda item

RESOLVED:

That Cabinet recommend to Council that:

1.     Council’s MTFP continues to be prepared on a going-concern basis, until such a time that LGR plans for the District are backed by appropriate legislation.

2.     revised MTFP forecasts, as outlined within the report and appendices be adopted.

3.     options identified to close the budget gap for 2026/27 and through to 2029/30 are developed further.

4.     reporting timeline as set out in paragraph 82 be agreed.

5.     proposed car parking fees and charges from 1 January 2026 as referenced in paragraph 53 and detailed in appendix 5 are approved.

KEY DECISION:

Report to Cabinet and Council.

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 this was the first update since the setting of the 2025/2026 budget back in February 2025. He was pleased to report that the Council was comfortably able to invest in its service delivery whilst continuing to allocate the necessary funding to support priority projects and Council services. Assumptions contained in the report from the fair funding review were positive however caution must be taken as this was not set in stone and there was still some clarity required on new burden funding for waste services.

Fees and charges had been updated and the Portfolio Holder reminded Cabinet that this was an important process that must be maintained and reviewed on an annual basis to keep up with the inflationary costs of these services to ensure the Council remains in a sound financial position.

On the Housing Revenue Account, this continued to see growth in costs over the next four years, however the HRA provides exceptional delivery to social housing and accommodation residents within the District.

The Portfolio Holder was positive of the financial position of NFDC and was proud to pass this position on the newly formed authority after LGR.

The Assistant Director of Finance explained that the position presented in the report does contain various assumptions and is subject to change. The Council remain reliant on the government’s provisional settlement following the fair funding consultation, with the outcome due in December.

The MTFP included provision for future pay awards, increments and inflation uplifts as well as further investment in waste and street scene services. Work continues to quantify resources to support LGR, and a review of the Council’s Capital Programme is underway too.

Overall, the position is positive in the short term, however there is a gap of over £500,000 in the medium term and this could change when clarity over the stated matters comes forward.

The Assistant Director of Finance explained that the fees and charges play an important role in the Council balancing the budget, with specific reference being made to the increase in car parking charges and the Keyhaven River fees coming into force in January 2026.

Finally, the Assistant Director of Finance reminded Cabinet of the various bodies that would continue to input prior to the usual Cabinet and Council meetings in February.