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Cabinet agrees medium-term financial plan, with continued reliance on government support needed
A plan that sets out the council’s financial forecasts for the next five years, and the framework within which it will set the budget, was approved by the Royal Borough’s Cabinet when they met on Tuesday 22 July 2025.
While based on high-level assumptions which are subject to change, given the stage of the financial cycle, the Medium-Term Financial Strategy makes clear that without significant changes to the level of funding, the council will continue to need Exceptional Financial Support from government to become sustainable over the medium-term.
Government support received so far, in a capitalisation direction of £103m, has allowed the council to spread the shortfall in funding for day-to-day services over the next 20 years, alongside permission to raise council tax for 2025/26 by 8.99% to enable the delivery of key services.
However, the outcome of the government’s Spending Review in June indicates that the next settlement, due in November, will be tough - with much smaller increases than in recent years.
This, coupled with potential government plans to shift resources to more deprived areas of the country, as part of their Fair Funding Review 2.0 from next year on a three-year basis, will not be beneficial to the borough.
Read more in our press release
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