Issue - meetings

2026/27 Revenue Budget, Medium Term Finance Plan, and Council Tax Setting

 

 

Meeting: 04/02/2026 - Executive (Item 103)

103 2026/27 Revenue Budget, Medium Term Finance Plan, and Council Tax Setting pdf icon PDF 1 MB

Report for decision and submission to Council.

Additional documents:

Decision:

 

ORDERED the Executive to approve that the following are forwarded to

Council for approval:

 

  1. Proposed service budget growth of £6.460m from 2026/27 in order to reinvest in some direct services to the community and provide reinvestment in the resilience of enabling services (detailed in Appendix 3)

 

  1. Budget provision of £15.549m for 2026/27 rising to £35.963m in 2029/30 to address forecast service demand pressures and re-basing of budgets (including for reduced income levels and legislative requirements). This includes the decision by Executive not to increase school meals prices for parents who do not receive free school meals in order to support families, for which budget provision of £0.230m for 2026/27 rising to £0.371m in 2029/30 has been provided (paragraphs 4.59 to 4.61 and Appendix 1)

 

  1. Budget provision of £0.499m p.a. from 2026/27 for Corporate Demand, and the continuation of the Member Led Ward Schemes budget of £0.235m p.a.  from 2026/27 (Table 7 in paragraph 4.62)

 

  1. Budget provision of £2.458m p.a. from 2026/27 to remove savings from the MTFP which are now found to be unachievable in the manner originally intended (paragraph 4.65)
  2. No increase in core (general) Council Tax for 2026/27, but an increase in Council Tax for 2026/27 of 2% relating to the Adult Social Care precept to fund increased costs of statutory duties in Adult Social Care (paragraph 4.30), resulting in a proposed Council Tax level (Band D) of £2,115.86 excluding parish, Fire, and Police precepts (detailed in Appendix 11)

 

  1. The proposed General Fund revenue budget for 2026/27 with a net budget requirement of £200.675m (Appendix 5)

 

  1. The Financial Reserves Policy for 2026/27 (Appendix 7) including the proposed contributions to reserves to strengthen the Council’s financial resilience and the setting up of a new Budget Smoothing Reserve from 2026/27

 

  1. The proposed Fees & Charges Policy for 2026/27, and the schedule of fees and charges arising from the application of the approved policy for 2026/27 (Appendix 8)

 

  1. The Capital Strategy Report 2026/27 and the proposed 2026/27 to 2029/30 Capital Programme totalling £183.741m which includes the addition of new Council funded schemes and additions to current schemes and extension of schemes deemed Business as Usual totalling £11.735m in 2026/27 and  rising to £56.633m by 2029/30, and the associated financing statement (Appendix 9)

 

  1. The Flexible Use of Capital Receipts (FUoCR) Strategy for 2026/27 including transformation and redundancy expenditure as part of the Transformation Programme amounting to £5.789m which can be capitalised in 2026/27 (Appendix 10)

 

  1. The Pay Policy Statement for 2026/27 which sets out the Council’s policies on remuneration of its staff in accordance with Section 38 of the Localism Act 2011 (Appendix 13)

 

AGREED the Executive:

 

  1. Notes the statutory s25 report of the Council’s Section 151 Officer in respect of the robustness of the estimates within the budget and the adequacy of reserves (Appendix 6)

 

  1. Notes that the Council’s S151 officer recommends that the Council increases the Council Tax each year by the maximum allowed by the Government due to the reasons outlined in paragraph 4.31. However, whilst not recommended, given the  ...  view the full decision text for item 103

Minutes:

The Executive Member for Finance submitted a report for Executive consideration which set out the proposed 2026/27 Revenue Budget, Medium Term Financial Plan (MTFP), and Council Tax proposals following the publication of the Provisional Local Government Finance Settlement.

 

The report outlined key financial assumptions, Government funding allocations, service demand pressures, proposed budget growth, and the recommended Council Tax position for 2026/27, and requested that the Executive approved a series of recommendations for referral to Full Council at its meeting on 18 February 2026.

 

Members noted that Government funding through the Fair Funding Allocation totalled £130.960m, an increase of £14.171m, and that the Council’s Core Spending Power was forecast to increase by £57.369m (28.3%) between 2025/26 and 2028/29. A balanced MTFP had been achieved for all four years, with a proposed Net Revenue Budget of £200.675m for 2026/27. The Mayor and Executive proposed no increase in core Council Tax but a 2% Adult Social Care precept, resulting in a Band D charge of £2,115.86.

 

Members acknowledged the significant service demand pressures and re‑basing requirements amounting to £15.549m in 2026/27, alongside the proposal to remove £2.458m of previously approved savings that were no longer achievable. It also noted the proposals for £6.460m of service budget growth, aligned with Council Plan priorities, and £0.499m of corporate demand pressures, as well as the continuation of the Member‑Led Ward Schemes budget. Details of the proposed Capital Programme were provided, totalling £183.741m over 2026/27–2029/30, together with the 2026/27 Flexible Use of Capital Receipts Strategy amounting to £5.789m.

 

The recommendations on reserves were noted, including maintaining the General Fund at a minimum of £11.1m and building the Financial Resilience Reserve to £10m in 2026/27, rising to £20m by 2029/30. It also considered the outcomes of the public consultation, which saw 54% support for the 2% Council Tax proposal, and received an update on the Dedicated Schools Grant, with an indicative allocation of £222.114m and a forecast cumulative deficit of £31.213m at 31 March 2026.

 

Members proposed a series of amendments to the report which following a vote, were agreed. The budgets for the Members’ Small Scheme programme for 2025/26 and 2026/27 were reprofiled to reflect the earlier decision to allocate £150,000 for 2025/26 and £120,000 for 2026/27. It was further agreed to roll forward the £6,400 underspend from 2025/26 to 2026/27 and to bring forward £7,500 from 2027/28, resulting in a total allocation of £133,900 for 2026/27 to cover all eligible schemes proposed for that year.

 

In relation to Pest Control, the committee agreed that the wording be amended in Appendix 3 to clarify that increased capacity would enable the Council to extend the service beyond back alleys and open spaces to domestic properties, ensuring it was clear that the expanded offer focused on key public health pests. This amendment was made to avoid the wording being interpreted as applying to offices or shops, and it was noted that a separate report would follow setting out detailed operational arrangements.

 

Members were advised that the  ...  view the full minutes text for item 103