Purpose

To provide a budget update and timetable for the 2026/27-2028/29
budget

Content

The Cabinet considered a report of the
Director of Corporate Services, which sought to inform of the
budget guidelines and timetable to be used in preparing the
detailed 2026/27 budget and provisional budgets for 2027/28 and
2028/29.
 
The Portfolio Holder for Finance and
Growth delivered a brief summary of the report’s key
points.
 
The Deputy Chief Finance Officer was in
attendance to present the information and to address the questions
and the comments of the Cabinet Members.
 
The Senior Officer continued updating
on the Local Government Funding Reforms due to be implemented from
2026/27, and the consultations associated with the reforms. The
reforms would simplify the funding landscape and provide multi-year
settlements giving Local Authorities greater certainty over
funding. They would update how funding would be allocated to make
it fairer, which included Council Tax Equalisation and a Business
Rates Reset.
 
Resolved:

1.   
That the proposed budget timetable detailed at Appendix 1 of the
report be approved;

2.   
That the revenue assumptions, detailed in Appendix 2 of the report,
to be incorporated into the budget setting process, noting the
budget assumes an increase in Council Tax of 4.99% be approved;

3.   
That the revenue budget principles in Appendix 3 of the report be
approved;

4.   
That the capital budget principles in Appendix 4 of the report be
approved;

5.   
That the Local Government Funding Reforms and consultations
outlined in section 5.3 of the report be noted.
 
Reason for decision:
Under the Budget & Policy
Framework, Cabinet is required to approve the proposed guidelines
and timetable for setting the 2026/27 Budget and Provisional
Budgets for 2027/28 and 2028/29 by September.
 
Alternatives considered and
rejected:
The Council is legally obliged to set a
balanced budget. The budget setting process is complex and must be
undertaken in a planned way. It is equally important that
assumptions used in the preparation of the budget are agreed,
reasonable and consistently applied by all services.
 
An alternative would be to wait and
provide the budget update once the Local Government Funding Reform
consultations conclude, and the individual Local Authority funding
allocations are known. However, the allocations would not be known
until the Autumn Statement and Provisional Finance Settlements were
announced in November/December 2025, and it is important to keep
members updated on the budget process throughout the year.