Purpose

To refer the Draft Budget 2026/27 to the
meeting of Full Council on 26 February 2026 to allow Council to set
the Council Tax for 2026/27 and to approve the Budget for that year
with the suite of reports which are attached as appendices to this
report.
 
This report brings forward proposals to
benefit the Council and the communities it serves through:
 
i. 
Funding the Council's commitment to secure improvement in SEND
Services.
 
ii. 
Providing to fund the Dedicated Schools Grant Deficit until 2028/29
in line with reform plans set by Government.
 
iii. 
Managing strategically the consequences of the decision - in past
years - to acquire and hold a Very Long Term Investment Portfolio
comprising Government and commercial bonds.
 
iv. 
Investing £99m in frontline services for 2026/27 through
meeting increasing demands and the impact of inflation on
budgets.
 
Table 1: Inflation Requirement
 

 

2026/27

2027/28

2028/29

£m

£m

£m

Adults Services

26.213

47.123

70.362

Children's Services

4.541

8.398

12.179

Waste Services

3.047

6.071

18.804

Highways Services

1.349

2.073

2.760

Transport Services

2.500

5.635

9.025

Property Services

0.436

0.875

1.362

Other Services

1.407

2.028

2.692

Total

39.493

72.203

117.184

 
Table 2: Demand
Growth
 

 

2026/27

2027/28

2028/29

£m

£m

£m

Adults Services

14.068

29.680

46.838

Children's Services

24.097

24.654

22.402

Waste Services

0.434

0.968

1.502

Highways Services

0.032

0.065

0.100

Transport Services

17.729

23.509

29.638

Other Services

3.006

3.641

6.664

Total

59.366

82.517

107.144

 
v. 
Implementing the benefits of an ongoing Efficiency Review and
savings previously identified worth £62m in 2026/27 roughly
equivalent to 5% of the Net Budget for the Council; these resources
are to be re-invested in services (see iv. above).
 
vi. 
Maintaining the level of the General Fund Unearmarked Reserve for
the Council at 5% of Net Expenditure in line with good practice in
the Sector.
 
vii. 
Presenting a Capital Programme worth £292m in 2026/27 to
ensure that the fixed assets over which the Council has charge are
maintained, enhanced and renewed in support of Council services and
the County generally.
 
viii. 
Proposing a Council Tax increase overall of 3.80% reflecting the
September 2025 Consumer Price Index increase published by
Government - compared with the maximum of 4.99% that would be
possible without referendum.
 
This is an additional charge representing 85p
per week for a Band A property and 99p per week for a Band B
property.

Content

The Cabinet approved the recommendation(s) as
set out in the report.