Councillor Mark Lowry (Cabinet Member for Finance) introduced the Medium-Term Financial Strategy 2025/26 to 2029/30 and discussed:

a)     The strategy set out the Council’s expected expenditure and income over a five-year period and was produced annually;

b)    The Council had previously received only one-year funding settlements from Government, but now had a three-year settlement, which provided greater transparency. Challenges remained due to the ongoing Fairer Funding Review, Business Rate Reset, and the treatment of the Dedicated Schools Grant (DSG) deficit;

c)     The Council faced ongoing financial pressures in Adult and Children’s Social Care, homelessness, and SEND provision. These figures represented real people with complex needs and required unwavering support;

d)    These pressures could not be resolved through short-term fixes, and the strategy proposed a bold shift to a prevention-first approach, involving investment in early help, smarter service design, and integrated community-based models;

e)     The approach aimed to reduce reliance on high-cost crisis-driven interventions and move towards a more sustainable public service delivery model;

f)      Progress was already being made, including:

                     i.      Expansion of enablement in Adult Social Care;

                    ii.      Strengthening placement sufficiency in Children’s Services;

                   iii.      Investment in new temporary accommodation to meet homelessness demand;

g)     Transformation alone would not close the financial gap, and the strategy identified a savings requirement of £13.7 million for 2026/27, with all directorates engaged in developing proposals to meet this challenge;

h)    Plymouth was well placed to benefit from national investment programmes, including its designation as a National Defence Growth Area and inclusion in the New Towns Task Force programme, which supported housing delivery, infrastructure investment, and economic growth;

i)      The strategy was not just a financial document but provided the fiscal backdrop for setting a balanced budget for 2026 and outlined the roadmap for navigating the next five years;

j)      The Council remained committed to delivering for Plymouth residents and would continue to work with members, partners, and communities throughout the budget-setting process;

k)     A public engagement exercise had been launched alongside the strategy to gather feedback from residents and businesses on priorities, financial challenges, and ideas for savings or income generation;

l)      The survey was accessible via the Council’s website, social media, and email bulletins, and residents were encouraged to participate;

m)   The provisional settlement in December 2025 would provide further clarity, and the strategy would be updated and brought back to Cabinet and Scrutiny before going to Full Council and Budget Scrutiny in January;

n)    Councillor Lowry thanked all officers involved in producing the strategy, with particular thanks to Ian Trisk-Grove for his work during a period of significant change.

Ian Trisk-Grove (Service Director for Finance) added:

o)    The upcoming policy statement, expected the following week, would provide greater visibility on funding formula changes and the outcome of the Fair Funding Review;

p)    The multi-year settlement would support improved financial planning, and work would continue with members and directors over the coming months to finalise the full budget;

q)    Gratitude was expressed to all involved for their engagement and efforts to date.

In response to questions, the Cabinet discussed:

r)     The importance of public engagement in the budget-setting process, with feedback informing Budget Scrutiny and subsequent Council decisions;

s)     Clarification was provided on the apparent increase in the net revenue figure from approximately £250 million to £325 million, which reflected the inclusion of previously uncertain grant funding into the net revenue position, offering greater maturity and stability.

The Cabinet agreed:

1. To approve and recommend the Medium-Term Financial Strategy 2025/26-2029/30 to City Council at its meeting on 24 November 2025.