Issue - meetings

Report from the Executive Director of Corporate Services.

Recommendations:

That Cabinet recommend to Council:

1.    Approval of the Budget and Financial Strategy for 2026/27 as set out in the report and appendices, including a basic Council Tax increase of 1.95% and an Adult Social Care precept increase of 2%.

2.  ...  view the full agenda text for item 122

Consideration was given to the report which presented the Council’s Budget and Council Tax for 2026/27, based on the Council’s Provisional Local Government Finance Settlement for 2026/27, budget consultation and the consideration of Directorate budget proposals. A review of the financial planning assumptions within the Medium Term Financial Strategy (MTFS)  ...  view the full minutes text for item 122

Report from the Executive Director of Corporate Services.

Recommendations:

That Cabinet recommend to Council:

1.    Approval of the Budget and Financial Strategy for 2026/27 as set out in the report and appendices, including a basic Council Tax increase of 1.95% and an Adult Social Care precept increase of 2%.

2.    Approval of the extension to the Local Council Tax Support Top Up Scheme, that will provide up to £131.44 of additional support to low income households accessing the Council’s Council Tax Support Scheme. It will support those most financially vulnerable to rising household costs, through reduced Council Tax bills as described in Section 2.5.15

3.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2028/29, as described within Section 2.6.

4.    Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2025/26.

5.    To delegate authority to the Service Director of Planning, Regeneration and Transport in consultation with the Service Director of Financial Services and Cabinet member for Transport, Jobs and the Local Economy, to approve the specific detailed allocations and use of the Local Plan Reserve. 

6.    To note and accept the comments and advice of the Executive Director of Corporate Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of Reserves for which the Budget provides as set out in Section 2.14.

7.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2026/27 which took place from 28 November 2025 to 9 January 2026, attached as Appendix 5.

8.    Approval of the proposed increases in Adult Social Care provider contracts and for Direct Payments as set out in Section 2.4.

9.    Approval of the proposed approach and increases in Children’s Social Care costs as set out in Section 2.4.23.

10. Approval of the revenue investment proposals set out in Section 2.7 and Appendix 2.

11. Approval of the proposed revenue savings set out in Section 2.7 and Appendix 4.

12. Approval of the Council Fees and Charges for 2026/27 attached as Appendix 7.

13. Application of the Business Rates Reliefs as set out in Section 2.10, in line with Government guidance.

14. Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.12 and Appendices 3A to 3F.

15. Approval of the Treasury Management matters for 2026/27 as set out in Appendix 9 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy. 

16. Approval that any changes resulting from the Final Local Government Finance Settlement 2026/27 be reflected in the Budget and Council Tax Report to Council on 4 March.  

17. Continuation of the principles and measures adopted since April 2020 to make faster payments to suppliers on receipt of goods, works and services  ...  view the full agenda text for item 111

The Cabinet Member for Finance and Community Safety, Councillor Alam OBE introduced the 2026/27 budget, noting that it had undergone extensive consultation with officers, the budget working group, and Cabinet Members, and was now out for wider consultation. It was stated that scrutiny’s views were sought at this meeting, and that any recommendations would be reported to Cabinet. It was noted that a couple of Cabinet Members would contribute, specifically on investments.

The Service Director, Financial Services, Rob Mahon provided a technical overview of the main points from the budget report. Noting that the 2026/27 budget process had been more challenging than in recent years due to delays in the Government’s Fair Funding Review. Although the final outcome was positive, the slow progress had required the Council to plan for both potential savings and potential investment scenarios.

It was reported that the Medium-Term Financial Strategy (MTFS) had been updated in November and that a briefing on the budget journey had been presented to OSMB in January following the outcome of the Fair Funding Review. Key points highlighted included:

• The Fair Funding Review had been positive for the Council, simplifying funding mechanisms and providing a three?year funding position.
• The Council had received an increase of £9.2m for 2026/27, rising to £21.2m by 2028/29, alongside the 2025/26 recovery grant.
• Pensions revaluation was expected to reduce contributions by £6.6m per year from 2026/27.
• September CPI of 3.8% had uplifted certain grants and the settlement funding assessment, improving the funding position.
• Service grants, including extended producer responsibility, had been uplifted, increasing spending power.
• Council Tax and Business Rates collection remained strong overall, despite a significant issue connected to speciality steel.
• Savings for 2025/26 were on track, with route optimisation savings expected to be fully realised in 2026/27.
• The Council’s reserves remained robust, with no further use proposed for 2026/27 onwards other than the Local Plan, identified as appropriate one?off expenditure.

However, continued financial pressures were noted, particularly rising demand and complexity in both adults’ and children’s social care. Market inflation and the loss of a major business rates payer, Speciality Steel, had created further pressures and increased the likelihood of business rates write?offs. Capital financing costs linked to the wider capital programme also continued to impact the MTFS.

The Service Director, Financial Services went on to outline the key financial implications within the budget report. Adult Social Care demand and inflationary pressures had been addressed through an additional £8.6m allocation. CYPS was due to receive £4.8m, including £2.8m to correct historical under?inflation and £2m to meet inflationary pressures in 2026/27.

Home?to?school transport was reported to be in a more stable position following work over the previous 18-24 months; however, national demand pressures remained, and £0.5m per year had been added to the MTFS to accommodate expected growth.

Pay awards, the removal of national pay spine point 2 from 2026/27, and ongoing Real Living Wage obligations had been built into the budget. The update presented to OSMB in January  ...  view the full minutes text for item 111