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Having been duly proposed and seconded, the
Executive considered and agreed to:
 
Approve the establishment of a cross-party
Deficit Management Plan (DMP) Standing Panel to provide Member
oversight of the DSG SEND Reform Plan and DMP Plan and associated
risks; and that authority was delegated to the Executive Lead
Member to determine the membership, terms of reference and
commencement arrangements for the Board.
 
Consider the key findings and the specific
recommendations of the Scrutiny Committee Corporate and Resources
in relation to the scrutiny of the Budget Proposals 2026/27, as set
out in Appendix W and Appendix 1 of that report,
when finalising its Budget Proposals 2026/27 that would be
recommended to Full Council on 4 March 2026.
 
Having been duly proposed and seconded, the
Executive considered, agreed and recommended to Full Council:
 
In respect of the
Robustness of the Budget
 

a)   
NOTE the conclusions of the Council’s Interim
Chief Finance Officer (Section 151 Officer) in his Section 25
report confirming the robustness of the Budget estimates and the
adequacy of reserves for 2026/27 and his warnings about the need to
get further grip on forecast deficits, accelerate the
Council’s Transformation Programme and to re-commit to
achieving Financial Sustainability from 2027/28 without recourse to
ERP or reserves.
 
In respect of the
General Fund Revenue Budget 2026/27
 

b)   
APPROVE the General Fund Net
Revenue Budget for 2026/27 of £717.521m
including the appendices set out in (i)
to (vii) below:
                       
i.        
The individual Executive and Service Directorate Budgets for
2026/27 as outlined in Appendix A
                      
ii.        
MTFP Movements set out in Appendix E since the
report that was presented to Executive in December 2025.
                     
iii.        
The Specific Revenue Grants Schedule 2026/27 set out in Appendix F
                    
iv.        
TheSavings and income generation plans in Appendices
H(i) and H(ii), including the MTFP
Equality 2026/27 Equality Due Regard Consideration in Appendix L
                      
v.        
Changes to the Fees and Charges schedule for 2026/27 set out in
Appendix J.
                    
vi.        
Additional funding for new spending requirements arising from
pressures/growth as set out in Appendix
M.
                   
vii.        
The ‘minded to’ offer from MHCLG in relation to
£30.000m of Exceptional Financial Support and the conditions
attached to the offer as set out in the letter from the
Minister.
 

c)   
To NOTE
                       
i.        
That the level of General Reserves was maintained within the
risk-based assessment range of £37.126m minimum
to £74.252m appropriate level.
                     
ii.        
The MTFS 2026/27 – 2030/31 Strategy Document set out in
Appendix D and the MTFP for the next five years set
out in Appendix B
                    
iii.        
The 2026/27 Budget Consultation Feedback (Appendix
V)
                    
iv.        
That further minor changes would need to be made to a number of appendices presented to Full Council
reflecting the late clarification of certain details and
Government’s announcements regarding Exceptional Financial
Support.
 
In respect of the
Dedicated Schools Grant (DSG) NOTE
 

d)   
The overall Dedicated Schools Grant allocation of £626.996m
for 2026/27 and breakdown by block set out in Appendix
U(ii).

e)   
That spending on the Dedicated Schools Grant, set out in Appendix U(i)was forecast to
exceed the funding provided by government by £45.783m in 2025/26 and was projected to reach a
cumulative deficit of £107.775m by 31 March
2026 (£116.800m for the High Need block within the
overall DSG).
 
In respect of the
Schools Block Funding APPROVE
 

f)     
The Schools Block Funding as outlined in the report from paragraph 144 to 150 onwards and Appendix
U(ii) to the report; and
 

g)   
Agree to delegate authority to the S151 Officer to approve the
Schools Block funding in future years in consultation with the
Executive Lead Members responsible for Finance and Children's
Services.
 
In respect of the
Earmarked Reserves to NOTE
 

h)   
The Earmarked Reserves reprofiling as set out in Appendix N.
 

i)     
The overall estimated position of Earmarked Reserves outlined in
Table 16 and the proposed use of reserves detailed
in Appendix N which included the estimated use of
Earmarked Reserves during the year.
 

j)     
Approve the contribution to reserves of £7.000m for the DSG Deficit (HNB) reserve and
£2.000m for the Hardship Fund.
 
In respect of the
General Fund Capital Programme to APPROVE
 
k)   
The revised Capital Programme of £860.500m 2025/26 to
2030/31, as set out inAppendices O(iii)) and
O(iv).
 
l)     
The Capital Investment Strategy for 2026/27 set out inAppendix P.
 

m) 
£303.199m new General Fund Capital proposals
2026/27 to 2030/31 set out in Appendix O(i)and
 

n)   
Transformation expenditure of up to £9.500m and
DELEGATE authority to the Executive Director of
Resources, Strategy and Transformation, in consultation with the
Section 151 Officer and the Lead Member for Transformation, Human
Resources and Localities, to finalise and enter
into the deliverable orders with Newton Consulting for the
development of the business cases, as set out in Appendix K.
 
In respect of the
Treasury Management Strategy and Prudential Indicators 2026/27, to
APPROVE
 
o)   
The Treasury Management Strategy 2026/27 set out in Appendix Q.
 
p)   
The Minimum Revenue Provision Policy (MRP) Statement 2026/27 set
out in Appendix R.
 
q)   
The Flexible Use of Receipt Strategy 2026/27 set out in
Appendix S.
 
r)    
The Non-Treasury Investment Strategy 2026/27 set out in Appendix T.
 
In respect of
Council Tax to APPROVE
 

s)   
The calculations for determining the Council Tax requirement for
the year 2026/27 in accordance with the Local Government Finance
Act 1992, which would be set out in the Council Tax Resolution
included in the papers for Full Council.
 

t)     
The Council Tax precept of £14.65, included
in the overall band D Council Tax for the shadow Somerset Rivers
Authority (representing no increase for 2026/27). This resulted in
a Council Tax Requirement of £3,190,293 for
the Somerset Rivers Authority.
 

u)   
The increase in Council Tax for a band D property for Somerset
Council, including the Somerset Rivers Authority Precept, by
4.99% or £92.69 per annum for 2026/27, giving a Band D Council Tax of
£1,950.30 per year, being:
 
a.   
The General Band D Council Tax by 2.99%
or £55.54 per annum, being
the maximum permitted without a referendum; and
 
b.   
The Adult Social Care Precept by 2.00% or £37.15
per annum.
 

v)   
Special Expenses of £129,145 relating mainly
to closed church yards in the former Mendip and South Somerset
area.
 

w)  
The precept requirement for Somerset Council of £424,840,944 (including Special Expenses Rate)
£424,711,799 (excluding Special Expenses
Rates).