Agenda item

1.      That the assumptions set out in respect of Government funding, council tax, inflation rates and fees and charges (set out in full in section 13 of report CAB3522) and the projections set out in Appendix 1 of the report be noted.

2.      That the Medium-Term Financial Strategy be approved as set out in sections 13 to 17 of the report. 

3.      That the following one-off revenue budget growth requests be approved;

            i.       An additional £0.3m revenue budget, funded by the transitional reserve, towards the Community Governance Review.

          ii.        A revenue budget of £2.280m, funded by the transitional reserve, towards the Local Government Review.

         iii.       A revenue budget of £0.03m in 2025/26, to be funded by higher than budgeted Parking income, towards additional Parking Enforcement overtime costs.

         iv.       A revenue budget of £0.05m in 2025/26, funded by the property reserve, for fees to design and plan works to the Guildhall.

4.      That a detailed budget be prepared for consideration by Council in February 2026 based on the assumptions set out in this MTFS; final spending review announcements; and including the following options shown in Appendix 2 and Section 14 of the report:

a.         That, in relation to services:

                             i.    Forecast increase in utility costs of £0.15m per annum.

                            ii.     Forecast annual savings of £0.3m per annum due to a reduction in the employer’s pension scheme contribution from 18.0% to 15.9%.

                           iii.    An additional baseline £0.115m revenue budget for the permanent recruitment of a Corporate Head of Resources.

b.         That, in relation to other annual budgets:

                             i.    Forecast increase in democratic costs of £0.085m

                            ii.     Increase in garage maintenance budgets of £0.120m per annum.

c.          In relation to management of the council’s property assets:

                             i.    An additional £400,000 per annum be set aside into the Property Reserve for the maintenance of and investment in operational assets.

                            ii.     An additional £100,000 per annum baseline revenue budget, for new requirements highlighted by the latest Asset Management plan and uplifts to existing maintenance budgets.

5.      That the following regarding Car Parking fees from October 2026 be approved:

a.      Freeze on park and walk and market town car park fees

b.      CPI increase to all central parking and overnight charges, generating an additional £150,000 per annum (£85,000 in 2026/27)

6.      That a capital budget of £100,000 be approved, funded by the Homelessness risk reserve, for the conversion of Stable Yard, to the rear of 59 Colebrook St, for temporary accommodation. This is subject to a business case and subsequent approval of expenditure under Financial Procedure Rule 7.4.

Councillor Cutler introduced the report and drew members’ attention to a number of key points.  He advised that the report had been discussed at The Scrutiny Committee on 13 November 2025 where questions and comments were raised which were responded to by Cabinet members and officers at the meeting.  The draft minutes from The Scrutiny Committee had been circulated to all those present at Cabinet.

At the invitation of the Leader, Councillors Lee, Warwick, Godfrey and Bolton addressed Cabinet as summarised briefly below.

Councillor Lee

Councillor Lee sought clarification on several financial details relating to the (MTFS), including whether the estimated £2.28 million costs for Local Government Reorganisation (LGR) included funding for property asset transfer expenses, such as legal and surveying costs for parish asset transfers. He also requested an explanation for the projected fluctuations in rental income risk scheduled for 2028/29 through 2030/31.   He queried whether the solar PV programme would be accelerated.

Councillor Warwick

Councillor Warwick celebrated the recent opening of the Allegra's Ambition outdoor gym.  However, she contrasted this success with the deteriorating condition of the former RPLC building since its closure five years ago.  She also expressed concern about the condition of Nuns Stream adjacent to the site.   She queried whether the MTFS included appropriate provision to secure the derelict building and clear the surrounding area until a decision on the future of the area had been made.

Councillor Godfrey

Councillor Godfrey noted that the expected longer term financial settlement should allow for greater certainty about the next few years.  However, he expressed criticism for a lack of progress on efficiencies, highlighting that the TC25 review had only identified half of its original savings target of £3 million per year.  He believed that Cabinet should recommit to TC25 and utilise the council’s strong financial position to strengthen future services, build more council houses, and reduce unnecessary expenditure.   He was concerned that following LGR, the new unitary council would use any remaining surpluses which might not provide direct benefit to the current Winchester district residents.

Councillor Bolton

Councillor Bolton also challenged the reported success of the TC25 programme. He believed that the council was over-relying on uncertain revenue growth measures rather that prioritising making difficult decisions to achieve meaningful ongoing savings in order to reduce the baseline budget.  He warned that avoiding the difficult decisions regarding meaningful recurring reductions could leave the council financially exposed.  He also expressed concern about the proposal to tender a long-term contract for grounds maintenance and street cleansing (report CAB3528 below refers) suggested a focus on maintaining the status quo.

Councillors Cutler and Tod responded to the comments made, including disputing the criticism of TC25 and emphasising the expected consequences of LGR on the council’s decision-making powers beyond September 2026.  Councillor Learney also responded to the comments made in relation to Nuns Stream by Councillor Warwick and offered to discuss with Councillor Lee the matters raised regarding Solar PV panels further outside of the meeting.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.          That the assumptions set out in respect of Government funding, council tax, inflation rates and fees and charges (set out in full in section 13 of the report) and the projections set out in Appendix 1 of the report be noted.

2.          That the Medium-Term Financial Strategy be approved as set out in sections 13 to 17 of the report. 

3.          That the following one-off revenue budget growth requests be approved;

a.             An additional £0.3m revenue budget, funded by the transitional reserve, towards the Community Governance Review.

b.             A revenue budget of £2.280m, funded by the transitional reserve, towards the Local Government Review.

c.             A revenue budget of £0.03m in 2025/26, to be funded by higher than budgeted Parking income, towards additional Parking Enforcement overtime costs.

d.             A revenue budget of £0.05m in 2025/26, funded by the property reserve, for fees to design and plan works to the Guildhall.

4.          That a detailed budget be prepared for consideration by Council in February 2026 based on the assumptions set out in this MTFS; final spending review announcements; and including the following options shown in Appendix 2 and Section 14 of the report:

a.              That, in relation to services:

                                    i.               Forecast increase in utility costs of £0.15m per annum.

                                   ii.               Forecast annual savings of £0.3m per annum due to a reduction in the employer’s pension scheme contribution from 18.0% to 15.9%.

                                  iii.               An additional baseline £0.115m revenue budget for the permanent recruitment of a Corporate Head of Resources.

b.              That, in relation to other annual budgets:

                                    i.               Forecast increase in democratic costs of £0.085m

                                   ii.               Increase in garage maintenance budgets of £0.120m per annum.

c.              In relation to management of the council’s property assets:

                                    i.               An additional £400,000 per annum be set aside into the Property Reserve for the maintenance of and investment in operational assets.

                                   ii.               An additional £100,000 per annum baseline revenue budget, for new requirements highlighted by the latest Asset Management plan and uplifts to existing maintenance budgets.

5.          That the following regarding Car Parking fees from October 2026 be approved:

a.              Freeze on park and walk and market town car park fees

b.             CPI increase to all central parking and overnight charges, generating an additional £150,000 per annum (£85,000 in 2026/27)

6.          That a capital budget of £100,000 be approved, funded by the Homelessness risk reserve, for the conversion of Stable Yard, to the rear of 59 Colebrook St, for temporary accommodation. This is subject to a business case and subsequent approval of expenditure under Financial Procedure Rule 7.4.