Purpose

This report requests approval
by Cabinet to recommend to Council the budget proposals and council
tax proposals for the Budget 2026-27 and Medium Term Financial
Strategy 2026-30.     The
Budget 2026-27 and Medium Term Financial Strategy 2026-30 following
Cabinet, is to be submitted to Budget Council 25 February
2026

Content

For the reasons set out in the
report and its appendices, the Executive Mayor and Cabinet
AGREED to:
 
2.1      
Approve the responses to the Scrutiny and Overview Committee
recommendations (to follow publication of this report) on the
budget proposals as set out in paragraph 7.3.
 
2.2      
Note the Council’s request for Exceptional Financial Support
(EFS) in the form of a Capitalisation Direction from the Ministry
for Housing, Communities and Local Government (MHCLG) of up to
£119m for 2026-27, decreasing to £69m by
2029-30.
 
2.3      
Propose to Full Council for approval the budget proposals set out
throughout this report.
 
2.4      
Propose to Full Council for approval an increase in the Croydon
element of the 2026-27 Council Tax of 4.99% (including the Adult
Social Care precept levy of 2.00%).
 
2.5      
Note that the Greater London Authority (GLA) will be meeting on
26th February 2026 to agree the GLA element of Council Tax (i.e.
GLA precept) and this is a day after the Full Council budget
meeting scheduled for 25th February.
 
2.6      
Owing to paragraph 2.5 above, recommend to Full Council the
establishment of a special Council Tax Setting Committee to meet
following receipt of the GLA precept and to agree the final Council
Tax calculation and within the remit approved by Full
Council.
 
2.7      
Propose to Full Council for approval the setting of the
Council’s own total net expenditure budget for 2026-27 at
£485.401m.
 
2.8      
Propose to Full Council for approval the Reserves Policy set out in
Appendix G.
 
2.9      
Propose to Full Council for approval that the Corporate Director of
Resources be authorised to collect and recover National
Non-Domestic Rate and Council Tax in accordance with the Local
Government Finance Act 1988 (as amended) and the Local Government
Finance Act 1992.
 
2.10
   Consider the statement (Appendix
F of the Report) of the Corporate Director of Resources and S151
Officer, under Section 25 of the Local Government Act 2003,
regarding the adequacy of reserves and robustness of
estimates.
 
2.11
   Propose to Full Council for
approval that the Council Tax Support scheme (statutory local
Council Tax reduction scheme) under Section 13A(2) of the Local Government Finance Act 1992 is not
changed from that agreed by Full Council resolution on 6th March
2024 and endorsed without change by Full Council resolution on 26
February 2025.
 
2.12
   Consider the responses to the
statutory consultation with businesses on the budget proposals and
referred to in Section 7 of this report.
 
2.13
   Consider and have due regard to
the equalities impact assessment undertaken on the budget proposals
as set out in Appendix H.