Purpose

This report sets out the proposed General Fund
Revenue and Capital budget 2026-27 along with the Medium Term
Financial Strategy (MTFS) covering the 4-year period 2026-27 to
2029-30

Content

Resolved to
recommend:

That Cabinet recommends to Council the
following:

1)            
That Council approves
the Administration’s proposed General Fund revenue and
capital budget and Council Tax increase on the Brighton and Hove
element of the council tax for 2026/27, comprising:

i)     
A general Council Tax
increase of 2.99%;

ii)    
An Adult Social Care
Precept increase of 2.00%;

iii)  
The council’s
net General Fund budget requirement for 2026/27 of
£341.476m;

iv)  
The 2026/27 budget
allocations to services as set out in Appendix 1 incorporating
budget savings proposals detailed at Appendix 2;

v)   
The one-off resource
allocations as set out in the table at paragraph 6.8;

vi)  
A recommended working
balance of between £12.000m to £15.000m (approximately
4% of the net budget) to be maintained over the period of the
Medium Term Financial Strategy.

2)            
That Council approves
the changes to Fees & Charges set out in Appendix 3 that relate
to any non-executive functions which have not already been
approved.

3)            
That Council notes
that Exceptional Financial Support of £15.000m has been
requested from the Ministry of Housing, Communities and Local
Government to assist with the setting of a legally balanced budget
in 2026/27;

4)            
That Council notes the
plans to address future projected budget shortfalls set out in the
4-Year Medium Term Financial Strategy at Appendix 4.
 

5)            
That Council approves
the Capital Strategy for 2026/27 at Appendix 5
comprising:

i)   
Funding for investment
in transformation and change, supported by the flexible use of
capital receipts as set out in paragraph 11.2;

ii)  
The capital resources
and proposed borrowing included at Annex A of the Capital
Strategy;

iii) 
The Capital Investment
Programme for 2026/27 of £239.816m included at Appendix 5
incorporating allocations to strategic funds.

6)            
That Council approves
the Treasury Management Strategy Statement as set out in Appendix 6
comprising:

i)   
The Annual Investment
Strategy;

ii)  
The Prudential and
Treasury Indicators;

iii) 
The Minimum Revenue
Provision policy;

iv)The authorised borrowing limit for the year commencing
1 April 2026.

7)            
That Council notes and
considers the Equalities Impact Assessments to cover all relevant
budget proposals as set out in Appendix 7.

8)            
That Council approves
serviced accommodation to be an exception to the council tax
premium determination for second homes as described in Section 16
and Appendix 8.
 

9)            
That Council further
notes that approval of the budget is an indicative resourcing
decision to be taken in the context of the explanation given in the
Legal Implications in Section 20.
 

10)        
That Council notes
that supplementary information needed to set the overall council
tax, including a detailed Budget Book, will be provided for the
Budget Council meeting as listed in paragraph 14.1.
 
Resolved-
 
That Cabinet agrees:
 

11)        
The changes to Fees & Charges
set out in Appendix 3 that relate to executive functions
 
12)        
That the council’s S151 Chief Financial
Officer be authorised to make any necessary technical,
presentational or consequential amendments to this report before
submission to Budget Council.