Skip to main content

Issue - meetings

BUDGET 2026/27 (REVENUE AND CAPITAL BUDGETS)

 

 

Meeting: 26/02/2026 - Council (Item 90)

90 BUDGET 2026/27 (REVENUE AND CAPITAL BUDGETS) pdf icon PDF 457 KB

REPORT OF THE DIRECTOR – RESOURCES

 

For Council to consider and approve a Budget for 2026/27.  

Additional documents:

Decision:

RESOLVED: That Council:

 

(1)         Noted the position on the Collection Fund and how it would be funded.

 

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

 

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

 

(4)         Approved the revenue savings and investments as detailed in Appendix B.

 

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

 

(6)         Approved a net expenditure budget of £27.524m as detailed in Appendix E.

 

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

 

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

 

(9)         Noted that a Council Tax premium on Second Homes would be implemented from 1 April 2026, which adopted the decision taken by Council on 29 February 2024.

 

REASONS FOR DECISIONS:

 

(1)         To ensure that all relevant factors are considered in arriving at a budget (revenue and capital) and Council Tax level for 2026/27.

 

(2)         To ensure that the budget is aligned to Council priorities for 2024-28 as set out in the Council Plan.

Minutes:

Audio recording – 9 minutes 44 seconds

 

The Chair invited Councillor Val Bryant, as Leader of the Council, to present the referral from Cabinet and she advised that:

 

·             The Council had a duty to set the budget for the forthcoming year.

·             The financial settlement from the Government had been better than expected and they would use this to invest in the district through a value for money approach to create a fairer, greener North Herts.

·             500 residents had responded to the Budget Consultation Survey

·             While those who had responded were in favour of freezing Council Tax, this would not be financially viable as they would need to ensure that service would deliver for residents and remain sustainable in the medium-term before Local Government Reorganisation (LGR) in 2028.

·             Council Tax was proposed to be increased by 2.99% in line with the Medium Term Financial Strategy, which was the equivalent to 15p per week for a Band D property. However, the Council continued to see its share of the Council Tax bill decrease despite this.

·             Their Council Tax Reduction Scheme would continue to remove the need for the poorest residents to pay Council Tax, and pension age residents would also continue to receive Council Tax reductions through the Government Scheme.

 

Councillor Ian Albert, as Executive Member for Resources, presented the report entitled ‘Budget 2026/27 (Revenue and Capital Budgets)’ and advised that:

 

·             The reports for the Revenue and Capital Budgets had been combined to cover general spending, and the Investment Strategy which covered more technical matters such as treasury investments would be discussed as a separate item. 

·             The Finance Team should be thanked for their work on producing the budget

·             The budget would be set with the knowledge that they had a 3-year funding settlement from the Government that would cover the next two financial years of the Council and the first year of a new unitary authority. However, if the Council existed beyond 2028, they would ensure that the necessary resources would be available.

·             They were grateful to residents that had participated in the Budget Consultation Survey to ascertain financial priorities following concern over the new fair funding formula.

·             However, the final settlement from this had been positive and enhanced by both a reduction in required pension contributions and a projected increase in Extended Producer Responsibility payments which had removed the need to find a further £2.5M in savings.

·             Funding for the Council through the Core Spending Power would increase by 4.3% next year, and by 2.3% and 2.2% in the following years.

·             Additional funding for homelessness prevention had also been agreed as part of the settlement.

·             There would be a prudent use of financial reserves to enable investment in the district and maintain a medium-term balanced budget.

·             Members had been engaged on the budget process via budget workshops and there had been no opposition to the proposals set out within these such as increased investment in the Economic Development Team to help deliver the Economic Development Strategy.

·             The top four services  ...  view the full minutes text for item 90