A WARNING has been issued over the ‘significant’ financial challenges facing local government.

A report on the medium-term financial plan (MTFP) will come before the council’s cabinet at its meeting on Monday.

The report will update the cabinet on the council’s updated MTFP over the next three years. It will also inform members of the ‘key risks and challenges’, along with an ‘overview of the main assumptions used’.

The MTFP sets out an ‘overarching forecast’ of the financial position for the next three years, says the report.

“The focus is on the general fund revenue budget as this involves the majority of the council’s day to day spending and income,” it adds.

“This report updates the budget approved at full council in March 2024 and extends the medium-term financial plan for a further year to 2027-28.

“The funding position for local government is still undetermined at this point and will be impacted by several central Government policy initiatives due over the coming years, including the fair funding review, impact of the 2021 Census, adult social care reform and business rates reset as well as a new Government comprehensive spending review due next year.”

The report also says the financial challenges facing local government are ‘significant’, adding large numbers of councils across the country are ‘experiencing significant financial pressures and are struggling to balance their budgets’.