Issue - meetings

Background:

The report set out initial projections of the Council’s income and cost of services for 2027/28 across the medium term. The Council continued to face severe and unprecedented financial challenges driven primarily by demand-led pressures in Adult Social Care, Children's Services and financing costs. Current projections indicated a budget gap of £65.858 million in 2027/28 rising to £359.314 million across the medium term. Without significant savings, service transformation and further government support, the Council would be unable to deliver a sustainable balanced budget over the planning period.

The Council had been transparent with residents on the issues with finances by ensuring access to all reports and information on its budgetary position and engagement with CIPFA and MHCLG.

Medway continued to experience exceptional challenges with Adult Social Care costs and whilst the financial costs were not limited to this area of service, this remained the biggest financial challenge. The leadership teams continued to explore different measures to do things differently and reduce spend whilst maintaining the quality of services provided to residents.

It was noted that measures were being taken to balance statutory and non-statutory responsibilities, as well as managing demand which continued to rise. Letters had been sent lobbying central government for fair funding for Adult Social Care which had been historically structurally underfunded.

Reason:

The Medium Term Financial Outlook  provides the framework that underpins the budget setting process for 2027/28 and beyond.