Skip to main content

Agenda item

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.

 

Cabinet Member

Councillor Patrick Coleman, Cabinet Member for Finance

 

Lead Officer

David Stanley, Deputy Chief Executive Officer and S151

 

 

 

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 park income increases, would be incorporated into the final MTFS figures, whilst fees and charges remained subject to annual Cabinet decisions, and future car parking income assumptions would be reviewed once new ticket machines were installed and provided more reliable usage data.
  • It was clarified that the fuel bunkering estimate had been increased from £60,000 to £100,000 to provide for additional works, particularly due to the environmental sensitivity of the proposed bunker location.
  • The Council used around 508,000 litres of fuel per year, and would have a 20,000-litre fuel bunker. A 15p per litre differential was assumed to manage the revenue impact of switching to HVO fuel, with flexibility required depending on fuel prices, availability, and sustainable sourcing. Contingency funds had been included to cover potential fuel price fluctuations.

The Budget consultation received 171 responses, significantly higher than the 42 received the previous year, though lower than a peak year of over 550. The increase was largely attributed to improved social media engagement and public awareness campaigns.

Supporting documents:

 

Related Pages