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Budget 2026/27 & medium term financial strategy

 

 

Meeting: 25/02/2026 - Council (Item 8.)

8. Budget 2026/27 & medium term financial strategy pdf icon PDF 551 KB

Purpose:

To provide the proposed budget for 2026/27, whilst also seeking approval for:

1.    The Draft Base Budget for 2026/27

2.    The Council’s Capital Programme for 2026/27 to 2030/31

3.    The level of Council Tax for 2026/27

4.    The Medium-Term Financial Strategy (MTFS) for 2026/27 to 2030/31

5.    The Capital Strategy 2026/27

6.    The Investment Strategy 2026/27

7.    The Treasury Management Strategy 2026/27

8.    The Council’s Pay Policy Statement 2026/27

 

Recommendations:

The Executive resolves to recommend the following to Council for approval:

1.    The General Fund Revenue Budget 2026/27 as Summarised in Annex A.

2.    The Medium-Term Financial Strategy for 2026/27 to 2030/31 in Annex B.

3.    The Capital Programme for 2026/27 to 2030/31 as set out in Annex C.

4.    The Council’s Pay Policy Statement as set out in Annex I.

5.    The Council’s Capital Strategy as set out in Annex J.

6.    The Council’s Investment Strategy as set out in Annex K.

7.    The Council’s Treasury Management Strategy as set out in Annex L.

 

Additional documents:

Meeting: 11/02/2026 - Executive (Item 460)

460 Budget 2026/27 & medium term financial strategy pdf icon PDF 530 KB

Purpose:

This report provides an update on the budget for 2026/27 following the provisional government funding settlement on 17 December 2025.

To consider:

1.    The Draft Base Budget for 2026/27

2.    The Council’s Capital Programme for 2026/27 to 2030/31

3.    The level of Council Tax for 2026/27

4.    The Medium-Term Financial Strategy (MTFS)

5.    The Capital Strategy 2026/27

6.    The Investment Strategy 2026/27

7.    The Treasury management Strategy 2026/27

8.    The Responses from the Statutory Budget Consultation 2026/27

9.    The Pay Policy Statement 2026/27

 

Recommendations:

That the Executive resolves to:

  1. Note the Parish Precepts and Tax Levels set out in Annexes G.

 

And resolves to recommend to Council to:

  1. Approve the General Fund Revenue Budget as Summarised in Annex A.
  2. Approve the Updated Medium Term Financial Strategy in Annex B.
  3. Approve the Capital Programme for 2026/27 to 2030/31 as set out in Annex C.
  4. Approve the Council’s Pay Policy Statement as set out in Annex I
  5. Approve the Level of District Council Tax for 2026/27 for a Band D property of £134.38 as shown in Annexes D-G.

 

Additional documents:

Minutes:

Councillor Alaric Smith, Executive Member for Finance, introduced the report, the purpose of which was to provide an update on the budget for 2026/27 following the provisional government funding settlement on 17 December 2025. The report was to consider the following:

1. The Draft Base Budget for 2026/27

2. The Council’s Capital Programme for 2026/27 to 2030/31

3. The level of Council Tax for 2026/27

4. The Medium-Term Financial Strategy (MTFS)

5. The Capital Strategy 2026/27

6. The Investment Strategy 2026/27

7. The Treasury management Strategy 2026/27

8. The Responses from the Statutory Budget Consultation 2026/27

9. The Pay Policy Statement 2026/27 

 

In his presentation Councillor Smith focussed on the following aspects of the report:

 

  • Full Council would consider the budget for 2026/27 on 25 February 2026.
  • The final draft had been updated with the provisional government funding settlement announced on 17 December 2025, and for updated Publica and Ubico contract sums, investment property information and Retained Business Rates.
  • The strategy papers for Capital, Investment and Treasury Management had been reviewed by the Audit and Governance Committee on 22 January 2026 and were included in the report.
  • The final Local Government Finance Settlement was published on 9 February 2026, and a supplementary briefing note had been published to address this. Councillor Smith advised that the government's methodology for the calculation of Business Rates pooling in the Funding Floor baseline had been adjusted, with the result that there was a reduction in funding of £2.318m over the three-year funding period, when compared to the provisional settlement. The Business Rates pooling gain was still included in Core Spending Power, but the methodology had changed, giving 50% to Counties and 50% to the districts. This had meant that there was a reduction in funding in years two and three. However, a new Adjustment Support grant introduced for 2026/27 ensured that no Council received less Core Spending Power than had been announced in the provisional settlement. 
  • The final draft budget resulted in a contribution to general fund reserves of £683,814 before growth requests and was balanced after growth requests.
  • The table at section 2 of the report showed key movements in the budget from that proposed to the Executive in January. Changes had included: the reduction in the Ubico contract; the Publica contract in which a re-based cost model had been adopted; additional movements to earmarked reserves for the Waste and Environmental Services Project and the next phase of Local Government Reorganisation (LGR); the removal of cost of interest on external borrowing from the base budget.
  • The Council proposed to invest in areas such as: management of the property portfolio; shared positions in Pollution Services, Tenancy Relations and Private Water Supplies; habitat improvements on Council land, species recovery projects; projects to prevent violence against women and girls; Environmental Officer and Field Worker posts; and a Planning Services Transformation Lead.
  • Councillor Smith paid tribute to the Officers responsible for the budget, which he considered to be good in the circumstances faced by the Council.
  • Councillor  ...  view the full minutes text for item 460

Meeting: 04/02/2026 - Overview and Scrutiny Committee (Item 90)

90 Budget 2026/27 & medium term financial strategy pdf icon PDF 515 KB

Purpose

This report provides an update on the developing budget for 2026/27 following the provisional government funding settlement announcement on 17 December 2025.

 

To consider:

1) The Draft Base Budget for 2026/27

2) The Draft Medium Term Financial Strategy (MTFS)

3) The Draft Capital Programme for 2026/27 to 2030/31

4) The Capital Strategy 2026/27

5) The Investment Strategy 2026/27

6) The Treasury Management Strategy 2026/27

 

Recommendation

That the Overview and Scrutiny Committee resolves to:

1.              Note the report and agree any recommendations it wishes to submit to the Executive.

Additional documents:

Minutes:

Councillor Alaric Smith, Executive Member for Finance, introduced the Budget and Medium-Term Financial Strategy, highlighting that:

-      The associated strategies for treasury, capital and investment had been considered by the Audit and Governance Committee.

-      The budget was balanced based on the 3-year government settlement.

-      There was a contribution to general fund reserves of £650,884 before growth items, which would help the Council to deliver its priorities.

-      There were sufficient reserves to see the Council through to vesting day for the successor authority, although there were a number of unknowns.

-      The Committee was considering the second draft of the budget. Version 3 had been published for the Executive the previous day and included some changes from version 2, including savings related to the Ubico contract and the reallocation of Publica costs, which had been favourable for the Council.

-      Officers were thanked for their work in delivering a satisfactory budget.

 

The Committee asked questions and the following points were noted from the responses:

-      More information was requested on the £156k growth item for sovereign posts. Negotiations were underway with a small number of employees in shared posts about working 100% for the Council and the Director of Finance agreed to consult SLT on providing more specific information to the Committee.

-      There would be costs associated with local government transformation but those costs unknown at this stage and may differ depending on the future unitary model.

-      The capital programme reflected the Council’s intention to invest in temporary emergency accommodation to better support people experiencing homelessness and, at Woodford Way, the delivery of affordable housing.

-      All growth requests included in the budget had been subject to an internal approval process involving the Council’s senior leadership team. Where posts were being funded for fixed periods, these could potentially be extended through the same process if there was a business case for doing so.

-      An additional Environmental Crime Officer post would provide additional capacity to address offenses such as fly tipping and meet the demands on that service.

-      The change to the bottom line from version 2 to version 3 of the budget was only £32k but within that there a number of changes, including:

o   Additional external audit costs (fees were set externally).

o   An increased Council Tax surplus.

o   Reduced interest on external borrowing as the Council was now not expected to undertake prudential borrowing in 2026/27.

o   Adjustments to commercial property income.

o   The inclusion of mileage costs for Council employees who undertake site visits (previously employed by Publica).

o   Reduced costs related to the Ubico contract and the rebasing of the Publica cost model.

o   £50k for exploratory work on undertaking a community governance review following a Council motion.

 

The Committee thanked the Executive Member and officers for providing clear explanations.

 

The Committee agreed to consider how to approach scrutinising the budget next year. Members commented that it would have been helpful for the changes in version 3 to have been  ...  view the full minutes text for item 90

 

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