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Issue - meetings

REVENUE AND CAPITAL BUDGETS FOR 2026/27 ONWARDS

 

 

Meeting: 20/01/2026 - Cabinet (Item 16)

16 REVENUE AND CAPITAL BUDGETS FOR 2026/27 ONWARDS pdf icon PDF 174 KB

REPORT OF THE DIRECTOR – RESOURCES

 

This report updates on changes to our spend and funding forecasts since the Medium-Term Financial Strategy and seeks approval from Cabinet on the revenue and capital proposals that should be incorporated into the final budget report in February. It also seeks approval for the level of Council Tax increase to be assumed in that report.

Additional documents:

Decision:

RESOLVED: That Cabinet:

 

(1)   Noted the Council’s expected funding for 2026/27.

 

(2)   Confirmed (in line with the Medium-Term Financial Strategy) that budget forecasts should be based on increasing Council Tax by 2.99% (the maximum amount allowable without a local referendum). Noting that Government have assumed Council Tax will increase by the maximum allowed in calculating Core Spending Power.

 

(3)   Agreed which proposals (revenue and capital) should be taken forward as part of the budget-setting process for 2026/27.

 

REASON FOR DECISIONS: To ensure that all relevant factors are considered in arriving at a proposed budget and level of Council Tax for 2026/27, to be considered by Full Council on 26 February 2026.

Minutes:

Audio recording – 1 hour 44 minutes 34 seconds

 

In the absence of the Chair of Finance, Audit and Risk Committee, the Chair invited Councillor Ian Albert, as Executive Member of Finance and IT, to present the referral and report entitled ‘Revenue and Capital Budgets for 2026/27 Onwards’. Councillor Albert advised that:

 

·        This critical paper had been examined in detail by the Finance, Audit and Risk Committee.

·        There had been discussion around the new information received regarding the staff pension scheme, the level of General Fund reserves required for the Fair Funding Review and some questions over the Churchgate Project Manager role.

·        It was welcomed that the Council had been given the new 3-year funding settlement from the government as this provided a level of funding certainty.

·        When the Council had approved the Medium-Term Financial Strategy (MTFS), there had been a level of uncertainty regarding future funding.

·        The aims and results of the resident budget survey were detailed in Section 8 of the report.

·        On 7 December 2025, the provisional settlement was provided by the government, which had been higher than expected.

·        All assumptions were based on Council Tax being increased by 2.99%, which was the maximum allowed.

·        Freezing Council Tax would result in a loss of funding of over £400k each year for the Council.

·        The Council was looking at a balanced budget by 2028/29, which would mean a manageable use of reserves

·        £1M was being set aside each year for costs associated with the Local Government Reorganisation (LGR).

·        It was hoped that the project to install a Learner Pool at the Royston Leisure Centre would be able to proceed.

·        Churchgate would be reviewed to ensure that the appropriate resources were available for the next stage of the project.

·        This budget sat alongside the Council Delivery Plan.

 

The following Members took part in the debate:

 

·        Councillor Mick Debenham

·        Councillor Donna Wright

·        Councillor Val Bryant

·        Councillor Ian Albert

 

Points raised during the debate included:

 

·        The investment proposals were something for the Council to be proud of.

·        Communication needed to be looked at to ensure awareness of the community.

·        The need to ensure there was capacity in the budget to deliver prudently and with value for money to benefit the community.

 

Councillor Ian Albert proposed and Councillor Laura Williams seconded and, following a vote, it was:

 

RESOLVED: That Cabinet:

 

(1)   Noted the Council’s expected funding for 2026/27.

 

(2)   Confirmed (in line with the Medium-Term Financial Strategy) that budget forecasts should be based on increasing Council Tax by 2.99% (the maximum amount allowable without a local referendum). Noting that Government have assumed Council Tax will increase by the maximum allowed in calculating Core Spending Power.

 

(3)   Agreed which proposals (revenue and capital) should be taken forward as part of the budget-setting process for 2026/27.

 

REASON FOR DECISIONS: To ensure that all relevant factors are considered in arriving at a proposed budget and level of Council Tax for 2026/27, to be considered by Full Council on 26 February 2026.