Agenda item

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);

9.    The proposed net revenue expenditure budget for 2026/27 for the Council set at £367.259m;

10.The proposed fees and charges as set out in the schedule included at Appendix 8

11.The level of general fund balances supporting the 2026/27 budget of £18.865m underpinned by the agreed policy on Reserves.

Councillor Hughes made known her disagreement with recommendation 4.