Medium Term Financial Strategy 2023/24 to 2026/27 and Budget Update

The Medium Term Financial Strategy 2023/24 to 2026/27 (MTFS) is a four year plan which sets out the council’s commitment to provide services that meet the needs of people locally and that represent excellent value for money within the overall resources available to it.

Overview of Medium Term Financial Strategy and Budget Update

This Medium Term Financial Strategy is what links the priorities set out in the Council Plan 2023 to 2027 with estimated resources to deliver them. It shows how the council’s finances will be structured and managed to support the delivery of the council’s priorities over the medium term planning period.

A key part of this strategy is, therefore, to forecast the key budget issues that will need to be addressed by the council over the coming financial years by estimating the level of available funding available and the potential costs, both in terms of revenue and capital spending.

With a funding gap of £3.22 million predicted in 2025/26 and £3.15m in 2026/27, the context in which we are working to deliver our priorities is challenging as:

• central government is expecting local councils to be more self-sufficient in the way they fund services for residents, but are only providing one year financial settlements, the uncertainty in future grant income makes planning for future years difficult
• government funding reductions also affect Hampshire County Council, which has recently identified significant savings measures likely to impact the borough council provision
• demands for services continue to grow, while just doing the same costs more.

A balanced budget will ensure the council is in a good financial position so we can protect frontline services, look after the borough’s assets, give vulnerable people the help they need, invest in shaping the way the future grows and transform our services through the use of new technology to support the borough’s digital future.

The strategy brings together the key issues affecting the:

• Revenue Budget
• Capital Programme
• Treasury Management Strategy
• Capital and Investment Strategy

Medium Term Financial Strategy 2023/24 to 2026/27(PDF) [3 Mb]