Content

Decision
 
RESOLVED that
Cabinet:
1.1) considered the latest
draft revenue budget position for 2026/27 set out in section 10 and
Appendix B, which shows a net budget requirement of £18,279k
(2025/26, £13,965k).
1.2) recommended this draft
budget to the Policy Review Committee (at its meeting on 26 January
2026) and to all Members, stakeholders and the public for
consultation.
1.3) recommended the proposed
3.0% staff and member pay award to the Personnel Committee and
staff for consultation.
1.4) considered the revised
Medium Term Financial Plan (MTFP) set out in section 11 and
Appendix C, which shows a balanced budgetary position over the
three-year financial period from 2026/27 to 2028/29, recommend the
MTFP to the Policy Review Committee (at its meeting on 26 January
2026) and to all Members, stakeholders and the public for
consultation.
1.5) that the proposals are
amended to include the following:
a) £200k towards
investment in the public realm, including improving street
cleaning, litter cleaning patrols and tackling fly
tipping. 
As well as using
£80k from CIL towards specialist vehicles and
equipment.
b) £150k towards
bolstering Community Safety, in particular the Community
Enforcement Team. 
£50k from
reserve funding will go towards a new vehicle.
c) £75k to support
cultural services and the creative sector through a Screen
Investment Growth Fund.
d) £10k to increase the
Ward Improvement Initiative Scheme from £750 to £1,000
per Member.
e) £40k to tackle
deprivation with an additional £5k per ward Member in the
three most deprived wards.
 
Reasons for
decision
 
The Authority is required by law to set a
balanced budget i.e. the anticipated ongoing costs of providing
services should be equal to anticipated funding resources. Further,
it is vital that the budget is sustainable over the long term while
achieving the Council’s corporate goals.
 
It is critical that the revenue budget is set
in such a way that ensures the Council allocates its limited
available resources effectively and efficiently, in order to
continue providing value for money services and meet both its
statutory obligations and its aims and objectives as outlined in
the Hertsmere Vision 2022/27 and the Corporate Plan.
 
This report presents a balanced budget position
for 2026/27, having taken into account previously agreed as well as
known and anticipated service pressures and efficiencies and the
available funding or core spending power (CSP) set out in the
provisional financial settlement for 2026/27 (adjusted slightly to
reflect Hertsmere’s actual ability to raise Council Tax
locally).
 
Also as resolved by the Council, the MTFP is
required to be reviewed and updated annually and approved as part
of the annual revenue budget setting
process and this report presents a revised
medium term financial plan covering the three-year period 2026/27
to 2028/29.
 
Alternative Options
Considered
 
The Local Government Act 1992, Section 32
requires that all known and anticipated revenue budgetary
requirements of the Authority for the forthcoming year be
calculated prior to setting the Council Tax. This must be done no
later than 11 March in the preceding financial year. Therefore,
there are no alternatives other than to agree a balanced budget by
the statutory deadline.
 
Setting a balanced budget is itself a statutory
requirement whereby the Council’s net budgetary requirement
must be fully financed from the available funding.