Issue - meetings

Budget 2026-27 and Medium Term Financial Strategy

Purpose:

To present the Revenue Budget for 2026/27, Capital Programme and Medium-Term Financial Strategy for 2026/27 to 2029/30.

Recommendation:

That Council resolves to approve:

1. the Medium-Term Financial Strategy set out in Annex B

2. the Budget Pressures and Savings for inclusion in the budget, set out in Annex C

3. the Council Tax Requirement of £7,419,716 for this Council

4. the Council Tax level for Cotswold District Council purposes of £163.93 for a Band D property in 2026/27 (an increase of £5)

5. the Capital Programme, set out in Annex D

6. the Annual Capital Strategy 2026/27, as set out in Annex E

7. the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2026/27, as set out in Annex F

8. the Strategy for the Flexible use of Capital Receipts, as set out in Annex H

9. that £2m is set aside in a new earmarked reserve Council Priority: LGR Transition through the releasing of £2m of the balance currently held in the Financial Resilience Reserve.

10. the balances and reserves forecast for 2026/27 to 2029/30 as set out in Section 7 of the report.

Additional documents:

Minutes:

The purpose of this report was to present the Revenue Budget for 2026-27, Capital Programme and Medium-Term Financial Strategy (MTFS) for 2026-27 to 2029-30.

The Chair invited the Cabinet Member for Finance, Councillor Patrick Coleman, to propose the administration’s budget.

Councillor Coleman noted this was the third budget of the Council’s second-term Liberal Democrat administration, highlighting the Council’s financial remodelling over seven years despite challenges including COVID-19, high inflation, the cost-of-living crisis, and Local Government Reorganisation (LGR). He praised staff professionalism and noted significant savings, including £500,000 per annum from waste collection reorganisation.

The proposed £5 annual Band D Council Tax increase was intended to support the 2026 budget. Councillor Coleman reported that the transition of Publica staff to the Council had improved retention, recruitment, and efficiency, delivering annual savings of £500,000 alongside restored pension scheme funding. Continued support for low-income residents via the Low-Income Families Tracker (LIFT) had helped 49 households out of fuel poverty, assisted 54 with water bills, and secured 181 new Council Tax Reduction claims.

On the Medium-Term Financial Strategy (MTFS), Councillor Coleman welcomed the multi-year finance settlement but expressed concern at the late government announcement, which reduced the funding floor by £700,000 for 2027–28 and 2028–29. The waste fleet replacement programme would be funded from existing resources without borrowing and included greener vehicles. The Financial Resilience Reserve was forecast to rise to £4.3 million. Strong public support for the budget during consultation was noted. Councillor Coleman moved recommendations 1–10, thanking officers and scrutiny members and commending the budget for approval.

The Chair invited Councillor Tristan Wilkinson to speak as seconder, who reserved his right.

Councillor Stowe, Leader of the Conservative Group, also reserved his right to respond.

The Chair then invited Councillor Stowe to propose the Conservative Group’s amendments in accordance with the Budget Council Protocol.

Councillor Stowe then spoke to the amendment proposal:

Amendment Part 1

Establish the “Cotswold District Council Legacy Fund Reserve” - £190,000.

This is to be funded by reallocating funds from the “Council Priorities: Capacity Building” earmarked reserve.

£5,000.00 to be allocated to each Ward Member (£170,000 plus £20,000 administration costs) to support suitable projects in their wards.

Projects are to leave a lasting legacy after CDC ceases to exist and are to align with the Council’s priorities including “Preparing for the Future.”

Examples – supporting youth activity, improving the public realm, improving the local environment and biodiversity.

Amendment Part 2

Additional funding of £40,000 to be allocated to the Planning Services Budget to be used to strengthen the Planning Enforcement Team.

Additional funding of £38,471 to be allocated to the Land Drainage and Flood Defence Budget to create a new Cotswold Flood Team Assistant Role.

These are to be funded by capping the Communications Budget at £300,000.

Councillor Stowe further commented:

Amendment Part 1 – Cotswold District Council Legacy Fund (£190,000)

The proposed Legacy Fund Reserve would be funded through reallocation from the Capacity Building Earmarked Reserve with no increase in overall expenditure
The £5,000 allocated per ward member ... view the full minutes text for item 79

Meeting: 05/02/2026 - Cabinet (Item 202)

Webcast for 05/02/2026 - Cabinet

202 Revenue Budget 2026-27, Capital Programme and Medium Term Financial Strategy PDF 2 MB

Purpose:

To present the Revenue Budget for 2026/27, Capital Programme and Medium-Term Financial Strategy for 2026/27 to 2029/30.

Recommendations:

Cabinet is requested to consider and approve for recommendation to Council:

1. the Medium-Term Financial Strategy set out in Annex B

2. the Budget Pressures and Savings for inclusion in the budget, set out in Annex C

3. the Council Tax Requirement of £7,419,716 for this Council

4. the Council Tax level for Cotswold District Council purposes of £163.93 for a Band D property in 2026/27 (an increase of £5)

5. the Capital Programme, set out in Annex D

6. the Annual Capital Strategy 2026/27, as set out in Annex E

7. the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2026/27, as set out in Annex F

8. the Strategy for the Flexible use of Capital Receipts, as set out in Annex H

9. that £2m is set aside in a new earmarked reserve Council Priority: LGR Transition through the releasing of £2m of the balance currently held in the Financial Resilience Reserve.

10. the balances and reserves forecast for 2026/27 to 2029/30 as set out in Section 7 of the report.

Cabinet is further recommended to approve delegation to the Council’s Deputy Chief Executive, in consultation with the Chief Executive, Leader, and Cabinet Member for Finance

1. To agree changes to the General Fund Summary arising from the Final Local Government Finance Settlement and the Business Rates Retention Scheme estimates prior to submission to Council.

Additional documents:

Decision:

The purpose of the report was to present the Revenue Budget for 2026/27, Capital Programme and Medium-Term Financial Strategy for 2026/27 to 2029/30 to Cabinet for approval.

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report.

It was noted that the Budget and Medium-Term Financial Strategy, had been prepared in the context of ongoing financial pressures and a significant medium-term budget gap. Members noted that, while funding reforms and a three-year provisional settlement provided increased certainty, savings and efficiencies would be required to maintain financial sustainability.

It was noted that there was no immediate risk of the Council requiring Exceptional Financial Support or issuing a section 114 notice. The 2026/27 budget was balanced through the use of reserves, with further gaps forecast in later years.

The Council noted proposals to increase Council Tax by £5 for a Band D property, which had received public support through consultation. Members also noted the planned use and maintenance of reserves, the continued requirement to deliver savings and transformation, and the proposed capital programme, including investment in waste and recycling infrastructure, funded without additional borrowing.

The recommendations were proposed by Councillor Coleman and seconded by Councillor Tristan Wilkinson.

RESOLVED that Cabinet considered the budget report and approved for recommendation to Council:

1. the Medium-Term Financial Strategy set out in Annex B

2. the Budget Pressures and Savings for inclusion in the budget, set out in Annex C

3. the Council Tax Requirement of £7,419,716 for this Council

4. the Council Tax level for Cotswold District Council purposes of £163.93 for a Band D property in 2026/27 (an increase of £5)

5. the Capital Programme, set out in Annex D

6. the Annual Capital Strategy 2026/27, as set out in Annex E

7. the Annual Treasury Management Strategy and Non-Treasury Management Investment Strategy 2026/27, as set out in Annex F

8. the Strategy for the Flexible use of Capital Receipts, as set out in Annex H

9. that £2m is set aside in a new earmarked reserve Council Priority: LGR Transition through the releasing of £2m of the balance currently held in the Financial Resilience Reserve.

10. the balances and reserves forecast for 2026/27 to 2029/30 as set out in Section 7 of the report.

Cabinet approved delegation to the Council’s Deputy Chief Executive, in consultation with the Chief Executive, Leader, and Cabinet Member for Finance

11. To agree changes to the General Fund Summary arising from the Final Local Government Finance Settlement and the Business Rates Retention Scheme estimates prior to submission to Council.

Voting record:

7 For, 0 Against, 0 Abstentions.

Minutes:

The purpose of the report was to present the Revenue Budget for 2026/27, Capital Programme and Medium-Term Financial Strategy for 2026/27 to 2029/30 to Cabinet.

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report.

The Council proposed to increase Council Tax by £5 for a Band D property, which had received public support through consultation. Members also noted the planned use and maintenance of reserves, the continued requirement to deliver savings and transformation, and the proposed capital programme, including investment in waste and recycling infrastructure, funded without external borrowing.

The Leader noted the good level of response to the public budget consultation despite it being concurrent with pre-election period and overlapped with the local plan consultation, and thanked all those who had responded to the consultation, noting that approximately two-thirds of respondents agreed or strongly agreed with the Council’s general approach, including the proposed 5% Council Tax increase, consistent with previous years. The responses to two specific questions were highlighted: 57% of respondents supported transforming services to be more cost-effective and customer-focused rather than maintaining the status quo, and 65% favoured prioritising delivery of capital projects within current capacity and finances rather than pursuing additional investment.

The Deputy Chief Executive and Chief Finance Officer, provided a brief update on the financial position. He noted that, as of 28 January 2026, the forecast for business rates had increased by £178,000 due to retained renewable energy schemes, and the reconciliation of Publica contract sums for 2026/27 was improving the overall position. He cautioned that the final government finance settlement, due on 9 February 2026 , could pose a small risk of change, particularly regarding business rates pooling, but advised that any adjustments were unlikely to be implemented immediately and would more likely affect future years.

The Leader invited questions or observations from Members on the report.

Councillors agreed that the Council’s financial position had been managed exceptionally well, highlighting the prudence in business rates forecasting, the three-year settlement which reduced immediate risk, and the absence of a “cliff edge” in the budget. They welcomed the substantial capital investment of almost £8.5 million in the waste vehicle fleet, noting that it secured a high-quality, environmentally friendly service for at least six to eight years without external borrowing. The contribution from extended producer responsibility funding of £1.721 million was also acknowledged as helping to offset service costs.

Councillors noted the positive impact of budget allocations on local residents, including continued funding for the home ... view the full minutes text for item 202

Meeting: 02/02/2026 - Overview and Scrutiny Committee (Item 299)

Webcast for 02/02/2026 - Overview and Scrutiny Committee

299 Budget 2026-27 and Medium Term Financial Strategy PDF 2 MB

Purpose

To present the Revenue Budget for 2026/27, Capital Programme and Medium-Term Financial Strategy for 2026/27 to 2029/30.

Cabinet Member

Councillor Patrick Coleman, Cabinet Member for Finance

Lead Officer

David Stanley, Deputy Chief Executive Officer and S151

Additional documents:

Minutes:

The purpose of the report was to provide an update on progress on the Council’s priorities and service performance.

The report was introduced by Councillor Patrick Coleman, Cabinet Member for Finance, and David Stanley, Deputy Chief Executive Officer.

The position reflected the latest published update but was subject to change due to two factors: the final local government finance settlement and ongoing reconciliation of the Publica contract sum.
The key message was that the current position was significantly better than anticipated.
Core spending power, which included council tax, revenue support grant, and transitional funding, was higher for 2026/27 than 2025/26 and remained higher for 2027/28 and 2028/29, with transitional protection amounting to approximately £5.2 million in the final year; 2029/30 fell outside the current spending review period and posed a potential concern for the council and the successor unitary authority.
The Council Tax referendum level was set at 5 percent.
The Budget assumed a very cautious estimate for business rates retention (£1.255m), compared with over £5m retained in the current year.
Extended Producer Responsibilities reduced to 60% of 2026/27 level from 2027/28.
Treasury management income for next year was forecast at £1.2m.
The level of Revenue Contribution to Capital Outlay (RCCO) was £1.547 million.

In questioning and discussion, the following points were noted:

Savings included in the MTFS came from existing savings and the transformation programme developed with Cabinet, which focused on measures judged credible and deliverable; further transformation work would continue next year led by Helen Martin, Director of Communities and Place,Councillor Mike Evemy, Leader of the Council, and Councillor Tristan Wilkinson, Cabinet Member for Transformation, to ensure continued financial sustainability if local government reorganisation was delayed.
The three £750k unavoidable growth figures were an estimate of additional charges linked to the new waste fleet contract. Although they appeared as a revenue cost paid out, they were offset by a corresponding deferred capital receipt back to the Council, making them broadly neutral in overall financial impact.
The £200,000 loan referred to the remaining balance of the Council’s Climate Bond borrowing (originally £500,000 taken out a few years earlier), which was the only current borrowing and was scheduled to be fully repaid by the end of the 2027–28 financial year.
It was noted that the Council had maintained a low level of debt because past capital programmes had largely been funded from internal resources and capital receipts rather than borrowing. Whilst low historic interest rates may have presented limited opportunities, no viable capital schemes requiring borrowing had been in place, and this cautious approach had avoided revenue risk.
Although the Council had previously funded capital activity through housing stock receipts, moving back into direct social housing ownership was not considered practical in the remaining period before Local Government Reorganisation. Whilst options had been explored, becoming a stock-holding authority or creating a housing company would have required significant scale, time, and financial risk, with partnership working with registered providers such as Bromford preferred.
The listed savings, including projected car ... view the full minutes text for item 299

Issue - meetings

Budget 2026-27 and Medium Term Financial Strategy

Meeting: 23/02/2026 - Council (Item 79)

Meeting: 05/02/2026 - Cabinet (Item 202)

Meeting: 02/02/2026 - Overview and Scrutiny Committee (Item 299)

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