Derby City Council is set to continue its journey towards long-term financial sustainability.  

The Council has published its draft Medium-Term Financial Strategy (MTFS), which sets out how it plans to manage its finances over the next three years while continuing to protect essential services, support vulnerable residents, and continue to invest in Derby’s future.   

The strategy will be reviewed by the Council’s Cabinet next week and reports a small gap emerging from the balanced position that was approved in February. The MTFS also reflects on the positive impact of the Government's Fair Funding reforms and multi-year funding settlements, alongside the Council's continued focus on responsible financial management, helping to create a more sustainable financial future for Derby.  

Derby is currently forecasting a budget gap of £1.826 million in 2027/28 and £1.690 million in 2028/29, with a small surplus forecast in 2029/30. These projections represent a significant improvement on previous years and reflect the Council's continued efforts to strengthen its finances, rebuild resilience and manage resources effectively.  

While the financial outlook has improved, some uncertainty remains around Local Government Reorganisation (LGR). Following the Government's decision to pause the programme pending a national review, the Council has developed the MTFS based on continuing to operate in its current form. The strategy will be reviewed and updated as more information becomes available.  

Councillor Hardyal Dhindsa, Cabinet Member for Finance, Governance and Digital said:  

Our Medium-Term Financial Strategy demonstrates just how far Derby has come in strengthening its financial position and creating a more sustainable future.  

While this is a much more positive picture than in recent years, we cannot be complacent. Demand for services continues to grow, particularly in Adult Social Care, SEND and homelessness support, and we know there are still challenges ahead.  

However, thanks to responsible leadership, careful financial management, continued investment in transformation, and the hard work of our teams across the Council, we are in a far stronger position to protect essential services, build resilience and continue delivering for the people of Derby. 

The Council's Cabinet will review the Medium-Term Financial Strategy on Wednesday 7 October 2026. The meeting will be available to watch live on the Council's YouTube channel.