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Issue - meetings

BUDGET 2026/27 (REVENUE AND CAPITAL BUDGETS)

 

 

Meeting: 17/02/2026 - Cabinet (Item 30)

30 BUDGET 2026/27 (REVENUE AND CAPITAL BUDGETS) pdf icon PDF 247 KB

REPORT OF THE DIRECTOR – RESOURCES

 

Cabinet recommends a budget for 2026/27 to Council for their consideration and approval.

Additional documents:

Decision:

RECOMMENDED TO COUNCIL: That it:

 

(1)            Notes the position on the Collection Fund and how it will be funded.

 

(2)            Notes the position relating to the General Fund balance and that due to the risks identified a minimum balance of £3.5 million is recommended.

 

(3)            Notes the Chief Finance Officer’s section 25 report (Appendix D) which provides a commentary on the risks and reliability of estimates contained in the budget.

 

(4)            Approves the revenue savings and investments as detailed in Appendix B to be amended.

 

(5)            Approves the capital programme as detailed in Appendix C.

 

(6)            Approves a net expenditure budget of £27.323m, as detailed in Appendix E with amount and detail to be amended.

 

(7)            Approves a Council Tax increase of 2.99%, which is in line with the provisions in the Medium Term Financial Strategy.

 

(8)            Approves bringing forward the capital budget for pool covers at the outdoor pools to 2025/26.

 

(9)            Notes that a Council Tax premium on Second Homes will be implemented from 1st April 2026, which is adopting the decision taken by Council on 29 February 2024

 

REASON FOR RECOMMENDATION: To ensure that all relevant factors are considered in arriving at a budget (revenue and capital) and Council Tax level for 2026/27. To ensure that the budget is aligned to Council priorities for 2024-28 as set out in the Council Plan.

Minutes:

Audio recording – 55 minutes 38 seconds

 

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

 

·        No concerns had been raised at Finance, Audit and Risk Committee concerning the budget from their prospective.

·        Finance, Audit and Risk Committee had noted that the Council was having to borrow to fund capital projects but were aware that management of the budget and the general fund was good.

·        Finance, Audit and Risk Committee were keen to support the allocation to investigate the provision of allotments in Great Ashby, as this was a long-standing issue.

·        The budget being proposed was in line with the Council Plan.

·        There had been engagement with Members during the budget setting process and budget workshops had been held.

·        The Council knew how important resources were to enable the delivery of strategic services.

·        The provisional settlement from the government was positive alongside the changes to pension contributions.

·        The General Fund balance was strong and was more than £10m above the minimum balance recommended of £3.5M.

·        The Council could therefore look to fund some projects by transferring some of the revenue reserves into a capital programme to benefit communities across the district.

·        The final settlement from government included an extra £70K in homelessness grants for 2026/27.

·        The provision of the three-year settlement provided additional security, however the Council needed to bear in mind that the allocations for years 2 and 3 were provisional.

·        Details of uncertainties on future costs and incomes were set out in the Section 25 report of the Chief Financial Officer which was included in Appendix D.

·        Council Tax was proposed to increase by 2.99% which would generate over £400K of extra funding and was in line with the Medium Term Financial Strategy.

·        The Council provided a good Council Tax Reduction Scheme for those residents in most need.

·        The overall position meant that there would be a balanced budget in 2028/29.

·        £2M across the next two years had been set aside to cover any costs associated with the Local Government Reorganisation (LGR).

·        Some of the new capital investment proposals for 2026/27 included £4.7M for a learner pool at the Royston Leisure Centre, £200K for digital and other signage at Hitchin car parks and £200K for additional water play features at North Herts Leisure Centre.

·        There were already many existing projects the Council had committed to, such as the museum storage project, which would protect vital archives to be of benefit to communities for many years to come. 

·        The Council was working with the Great Ashby Community Council and residents to provide additional allotment provision if possible.

·        Recommendation 2.8 was to allow the spend on pool covers to be brought forward to this financial year to enable the work to be carried out before the pools opened.

·        A Council Tax premium on second homes would be applied from  ...  view the full minutes text for item 30