To enable Cabinet to consider the updated financial forecast and budget proposals for 2026/27 for consultation with the Resources and Services Overview and Scrutiny Committee.

RESOLVED that Cabinet –

a)   approves the updated Financial Forecast and proposed budget position for 2026/27, as set out in the Portfolio Holder’s report (A.3) and its appendices;

b)   formally requests the Resources and Services Overview and Scrutiny Committee’s comments on this latest financial forecast and proposed position for 2026/27, as required by the Council’s Budget and Policy Framework Procedure Rules; and

c)   formally accepts, on behalf of the Council, funding of £210,298 from Sport England’s Place Partnerships Programme, and requests Officers to bring forward a separate report as part of the associated actions necessary to proceed with those projects. 

Cabinet considered a report of the Corporate Finance & Governance Portfolio Holder (A.3) which enabled it to consider the latest financial forecast and budget proposals for 2026/27 for consultation with the Resources and Services Overview and Scrutiny Committee.

It was reported that the financial position of Tendring District Council remained sound and the proposed budget assessed how the Council could successfully address future key cost pressures. The Council awaited the full financial implications of the Government’s Fairer Funding Settlement and the changing approach to business rates retention system, which would have an impact on the Council’s final position. Therefore, the forecast to date reflected the identification of key cost pressures which needed to be addressed in this report; however, when the final budget position was confirmed further opportunities for funding priorities and cost pressures would be determined. The budget proposals outlined in this report presented a two-year approach and sat with the revised key priorities to 2028 and the associated business plans and together formed an holistic approach to the two-year window leading up to 1 April 2028 (the potential vesting day for the new Unitary authority should Local Government Reorganisation (LGR) proceed on the Government’s current timetable for Greater Essex).

Cabinet was aware that the cost of the new waste contract had presented a significant financial challenge and when taken into account with the potential impact of LGR, which had emerged / evolved since the last forecast had been considered in February 2025, it presented an important financial ‘cross roads’ that set the financial context over the next two years, which could be the Council’s last two budget ‘cycles’ ahead of a successor Unitary Council being established and in place from 1 April 2028.

With the above in mind, it had been acknowledged that there was an underlying and critical need to revisit / revise the Council’s financial plans over the next two years and that Portfolio Holders and Officers would be undertaking a number of activities to enable the necessary detailed information and a funded two year financial plan (2026/27 and 2027/28) to be presented to Cabinet.

It was believed that such an approach would enable the Council to bring together a number of potential risks and opportunities that could be considered collectively and would place the Council in a strong position to support the continued protection of front line services, timely investment in other priorities, alongside meeting any emerging statutory obligations relating to the incoming new Unitary Council from as early as April 2028.

Members were informed that the above had included the identification of savings and responding to cost pressure and investment priorities. Although a significant amount of work had been completed to date, activities remained on-going that would culminate in final budget proposals being presented to Full Council in February 2026.

Based on the above approach, the forecast had therefore been updated to cover a shorter period of two years, along with a review of savings, efficiencies and cost pressures as set out in the respective  ...  view the full minutes text for item 89