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)          
considered the
consultation responses set out in section 13 and specifically: the
recommendation of the Personnel Committee for a pay award for
2026/27 of 4.0%, which would be an additional cost of £200k
per annum to be funded as discussed in paragraph 13.14;

一                  
the addition of
£40k housing support funding as discussed in paragraphs 13.20
and 13.21; and

一                  
the additional
funding of £58k for the Electoral services restructure agreed
by the Personnel Committee, paragraphs 13.18 and 13.19
 

1.3)          
That subject to
1.1 and 1.2 above, Cabinet recommended the draft 2026/27 revenue
budget to full Council for approval.

1.4)          
considered the
revised Medium Term Financial Plan (MTFP) set out in section 11 and
Appendix C, which showed a balanced budgetary position over the
three-year financial period from 2026/27 to 2028/29, and
recommended the MTFP to full Council for approval.
 
Reasons for
decision
 
The Authority was 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.
 
The 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
required 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 were 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.