Issue - meetings

To provide details of the budget reduction requirement and the Administration’s budget proposals for 2026/27 having regard to the Provisional Local Government Finance Settlement (PLGFS) published on 17 December 2025. The report also presents the financial forecasts for the remainder of the Medium-Term Financial Strategy (MTFS) period 2028/27 to 2028/29 based on the Settlement information received from Central Government and provides an indicative narrative on the years 2029/30 and 2030/31 which are outside the PLGFS period.

Cabinet Member for Finance, Corporate Services and Sustainability to report.

The Cabinet received a report of the Director of Finance that provided Members with the budget reduction requirement and the Administration’s budget proposals for 2026/27, having regard to the Provisional Local Government Finance Settlement (PLGFS) published on 17^th December 2025 and the subsequent Final Local Government Finance Settlement (LGFS) published on 9 February 2026. The report also presents the financial forecasts for the remainder of the Medium-Term Financial Strategy (MTFS) period 2028/27 to 2028/29 based on the Settlement information received from Central Government and provided an indicative narrative on the years 2029/30 and 2030/31 which are outside the LGFS period.

The submitted report presented the Council’s Revenue Budget for 2026/27 together with the budget reduction requirement and the Administration’s budget proposals for 2026/27 including Council Tax intentions. It also provided the financial forecasts for the MTFS period, 2027/28 to 2028/29 on the known settlement information and a high-level indicative narrative for the years 2029/30 and 2030/31 which were outside the LGFS period. Included within this report were several budget reduction proposals for consideration and a budgeted transfer to reserves for the financial years 2026/27 to 2028/29 which is the second consecutive that the Council’s revenue budget has been balanced without the need to use general revenue reserves to support it.

The Council has reviewed all the underlying assumptions in its approach to setting the revenue budget for 2026/27 onwards having regard for the impact of the Fair Funding Review 2.0 and the allocations published in the Local Government Finance Settlement. The revenue budget gap for 2026/27 is therefore revised to £20.301m. To balance the budget, a resources review has enabled budget adjustments of £10.196m, with Transformation Programme savings of £2.000m to be applied. £8.105m of budget reductions are proposed for delivery in 2026/27 which would balance the revenue budget position.

A version of the Revenue Budget 2026/27 and Medium-Term Financial Strategy 2027/28 to 2028/29 (based on the Provisional Local Government Finance Settlement (PLGFS) received on 17^th December 2025) was presented to the Governance, Strategy and Resources Scrutiny Board on 28^th January 2026. The Board scrutinised the report and the other reports on the agenda that formed a core part of the Council’s strategic financial planning framework and recommended them all to Cabinet. A further meeting of the Scrutiny Board took place on 5^th February 2026, which considered budget proposals put forward by the Liberal Democrat Party. The Board recommended these proposals to Cabinet (minute 7, above, refers).

The report explained that each year, the Council identified what it needs to spend on Council services for the following year as part of the budget setting process. This process also involved the identification of provisional spending plans for future financial years. This ensured that the Council’s future spending plans were balanced against the funding forecasts for Government Grants, Council Tax and Business Rates revenues and aligned with the Council’s corporate plan. These plans formed part of the Council’s Medium Term Financial Strategy (MTFS) which sets out a financial  ...  view the full minutes text for item 9

To provide the Governance, Strategy & Resources Scrutiny Board with the budget reduction requirement and the Administration’s budget proposals for 2026/27 having regard to the Provisional Local Government Finance Settlement (PLGFS) published on 17 December 2025. The report also presents the financial forecasts for the remainder of the Medium-Term Financial Strategy (MTFS) period 2028/27 to 2028/29 based on the Settlement information received from Central Government and provides an indicative narrative on the years 2029/30 and 2030/31 which are outside the PLGFS period.

Consideration was given to a report by the Director of Finance providing the Governance, Strategy & Resources Scrutiny Board with the budget reduction requirement and the Administration’s budget proposals for 2026/27 having regard to the Provisional Local Government Finance Settlement (PLGFS) published on 17 December 2025. The report also presented the financial forecasts for the remainder of the Medium-Term Financial Strategy (MTFS) period 2027/28 to 2028/29 based on the Settlement information received from Central Government and provided an indicative narrative on the years 2029/30 and 2030/31 which are outside the PLGFS period.

This report presented the Council’s Revenue Budget for 2026/27 together with the budget reduction requirement and the Administration’s budget proposals for 2026/27 including Council Tax intentions. It also provided the financial forecasts for the MTFS period, 2027/28 to 2028/29 on the known settlement information and a high level indicative narrative for the years 2029/30 and 2030/31 which are outside the PLGFS period. Included within this report are a number of budget reduction proposals for consideration and a budgeted transfer to reserves for the financial years 2026/27 to 2028/29 which is the second consecutive year that the Council’s revenue budget has been balanced without the need to use general revenue reserves to support it.

The Council had reviewed all the underlying assumptions in its approach to setting the revenue budget for 2026/27 onwards having regard for the impact of the Fair Funding Review 2.0 and the indicative allocations published in the Provisional Local Government Finance Settlement. The revenue budget gap for 2026/27 is therefore revised to £20.301m. To balance the budget, a resources review has enabled budget adjustments of £10.196m, with Transformation Programme savings of £2.000m to be applied. £8.105m of budget reductions are proposed for delivery in 2026/27 which would balance the revenue budget position.

The Leader of the Council and Cabinet Member each presented the budget reduction proposals with their individual Portfolio area. Scrutiny Board members were able to ask questions of the portfolio holder to seek further information and clarification of the proposals.

RESOLVED that the Report and the following recommendations be accepted and commended to Cabinet.

1.    The policy landscape and context in which the Council is setting its revenue budget for 2026/27;

2.    The financial forecast for 2026/27 having regard to the Provisional Local Government Finance Settlement and associated funding announcements;

3.    The Flexible Use of Capital Receipts at a value of £2.6m for 2026/27;

4.    A proposed overall 2026/27 Council Tax increase of 4.99% for Oldham Council services (2.99% for general purposes and 2% Adult Social Care Precept) resulting in the charges set out at Table 10 of the report;

5.    The Transformation Programme savings for 2026/27 at £2.000m

6.    The 2026/27 Budget Reduction proposals at a value of £8.105m;

7.    The proposed transfer to reserves of £1.600m in 2026/27 to improve the financial robustness of the Council;

8.    The proposal to draw on the Collection Fund for major preceptors of £153.167m for Borough Wide services and £129.237m for Council services (subject to confirmation);  ...  view the full minutes text for item 7