Purpose

The report will set out future financial
projections along with the policy framework for improving financial
efficiency and meeting the long term investment needs of the Town,
as well as proposals for the annual budget process.

Content

RESOLVED
 
That Full
Council be recommended to:
 
a)              
acknowledge the following key factors within the
Budget Strategy 2026/27– 2027/28 as set out in
report
FIN/706a:

i.                  
the Budget is aligned to the Council’s
Corporate Priorities.

ii.                
the outline two year forecast as shown in table 2
paragraph 6.1 of report FIN/706, this is likely to be subject to
significant change depending on the outcome of the Local Government
Finance Settlement for 2026/27 due to the redistribution of
Government Funding from the Spending Review 2.0.

iii.              
the forecast budget deficit of
£2.439m for 2026/27 (section 6.2) is
based on a Council tax increase of 2.99% which
is £7.15 for a band D equivalent.  Table 2 (section
6.2 of report
FIN/706a)
highlights the budget gap modelling different
assumptions. 

iv.              
the forecast does not include any fundamental
changes in service delivery as these would be too speculative in
nature at this stage.

v.                
there are significant uncertainties around
Government funding prior to the provisional Local Government
Finance settlement in December due to the
unknown outcome of the Spending Review
2.0.

and
approve:

b)               
the Budget Strategy 2026/27 to 2027/28 and
overriding principles as set out in section 6 of
report
FIN/706a.

c)               
the minimum recommended General Fund Balance remains
at £3m.

d)               
the Flexible Use of Capital Receipts Strategy
2025/26 contained within Appendix C of report

FIN/706a
(paragraph 8.4
refers).

Reasons for the
Recommendations

To agree the Council’s
Budget Strategy for 2026/27 to 2027/28 including the assumptions
made which will set the budget parameters for 2026/27.

The 2026/27 General Fund and
Housing Revenue Account Budgets and the revised capital programme
will be set by the Full Council in February 2026.  The Treasury Management Strategy and Capital
Strategy will be considered at the same meeting. 

To note that until the
provisional Local Government Finance Settlement is published in
December 2025 these projections are highly likely to
change.