Issue - meetings

(i)              That the funding pressures of £1.777m in 2026/27 and £3.069m over

the 5-year period covered by the Medium-Term Financial Strategy (MTFS) be noted.

(ii)             That the approach regarding the development of savings and income generation proposals in the medium-term, be agreed.

(iii)           That the continued uncertainty regarding the medium-term impact of

local government funding, be noted.

(iv)           That the letter sent to the Chancellor of the Exchequer (Appendix B)

from the Portfolio Holder for Finance, Town Centres and Growth requesting further funding in respect of Temporary Accommodation, be noted.

(v)            That the first Medium Term Financial Strategy update be referred to the Finance, Assets and Performance Scrutiny Committee for their views.

The Portfolio Holder for Finance, Town Centres and Growth introduced a report updating Cabinet on the financial pressures facing the Council for the period 2026/27 to 2030/31.

The gap for this year was £1.777m.  There were two main things that were causing the gap; the first being a fair funding review by the Government.  As Newcastle was a well run council, the Government were taking funding away of around £1.5m.  Secondly, the local government reorganisation would require £400,000 of funding.

The Leader endorsed the MTFS stating that the Council was well into the process of setting next year’s budget with the Efficiency Board and efficiency reviews being carried out.

The MTFS would be taken to the Finance, Assets and Performance Scrutiny Committee later this week.

Resolved:    (i)       That the funding pressures of £1.777m in 2026/27 and

£3.069m over the 5-year period covered by the Medium-Term Financial Strategy (MTFS) be noted.

(ii)             That the approach regarding the development of savings and income generation proposals in the medium-term, be agreed.

(iii)            That the continued uncertainty regarding the medium-term impact of local government funding, be noted.

(iv)           That the letter sent to the Chancellor of the Exchequer (Appendix B) from the Portfolio Holder for Finance, Town Centres and Growth requesting further funding in respect of Temporary Accommodation, be noted.

(v)             That the first Medium Term Financial Strategy update be referred to the Finance, Assets and Performance Scrutiny Committee for their views.

Watch the debate here