Agenda item

To consider the report of the Director of Finance (copy enclosed).

The Committee considered the report of the Director of Finance setting out the guiding principles governing the Medium-Term Financial Strategy (MTFS) of the Council and the reasons for them, in order to inform detailed annual budget setting.

The MTFS set out the themes affecting financial planning for council services in the coming years, along with the estimated financial values arising from this. These considerations then informed detailed planning for the coming year. The report outlined the four strategic key issues facing the Council and figure 1 detailed the key risks and opportunities arising from these. It was noted that the recommended financial strategy of the Council included a number of key elements which were detailed in figure 2 to the report.

The report provided further information on the following related areas:

·                Medium-term financial plan – this was constructed by translating the MTFS into financial value leads.

·                Funding – set out in the report and showing the current year overall funding position.

·                Operational net spending – including the main spending budgets provided for service delivery, plus locally generated resources. Figure 4 provided estimated operational net spending for 2026 – 29.

·                Capital investment as set out in the capital programme. Figure 5 gave a summary of the proposed capital programme for 2026 – 29.

·                Use of Reserves – figure 6 detailed the estimated reserves for 2026 – 28.

Members noted that there were a number of key issues for the Council which were set out in the report, supplemented by charts from the Institute for Government ‘performance tracker 2025: Local Government’. These charts provided an overview of the general position for local government and context for the Maldon position.

The Director of Finance gave a presentation which provided further detail regarding the MTFS including operating context, funding, spending, the Council’s financial position and core spending power and the provisional Government funding settlement. Members noted that this was due to be presented to the Finance Working Group and at scheduled Member training prior to the Council meeting on 12 February 2026. The Director highlighted how the MTFS was based on the assumption that Local Government Reorganisation took place in April 2028 and how setting an operational end date for the Council meant that budget planning after that date was not required.

The Chairperson moved the recommendations set out in the report with an additional one (see below) as set out in the presentation:

That the Committee notes that further adjustments to the MTFS may be necessary depending on the final 2026/27 financial settlement. Any significant changes will be highlighted in the Council papers.

The Director of Finance explained that although the provisional settlement had been received the final settlement was not expected for a week or so and as a result small changes may be required to the budget papers.

In response to a question, the Director explained that the Whole Time Equivalent figure had been taken from the annual HR return on the gender pay gap analysis. However, he would clarify if this data included those staff members that came to the Council under a grant scheme.

The Chairperson advised that although not detailed in the report, the Council had to approve the MTFS and there would therefore need to be a recommendation to the Council. This was duly noted.

In response to questions and comments raised, the Director of Finance provided further detail regarding grants received from the Government in respect of homelessness and rough sleeping.

The Chairperson then moved the recommendations set out in the report and additional recommendation (as detailed above) along with a further recommendation to the Council. Upon a vote being taken these were duly agreed.

RESOLVED

(i)             That the Committee considered the principles of the MTFS set out in the report, agreed any changes, and makes recommendations as appropriate to the Council;

(ii)            That the Committee recognised that the MTFS had been developed through ongoing consultation with the Finance Member Working Group in its meetings from June 2025.

(iii)           That the Committee notes that further adjustments to the MTFS may be necessary depending on the final 2026 / 27 financial statement, any significant changes will be highlighted in the Council papers.

RECOMMENDED

(iv)           That the revised Medium-Term Financial Strategy (Appendix 1 to the report) and any subsequent necessary adjustments, be approved.