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The Cabinet considered a report in respect of
the Council’s General Fund, Council Tax Support Scheme and
proposals for the 2026/27 Council Tax for onward recommendation to
Council.
 
The Portfolio Holder advised that the Fair
Funding position for Stevenage remained based on the Provisional
Local Government Finance Settlement, with the Final Settlement
expected to be laid before Parliament imminently. She was pleased
to report that the provisional figures were financially favourable
for the town.
 
The proposed Council Tax increase for 2026/27
was 2.99%, equating to 14 pence per week for a Band D property, or
1 pence per week for working?age households in receipt of maximum
support through the Council Tax Support Scheme.
 
The Portfolio Holder also advised that General
Fund balances remained above the minimum required level of
£3.65 million, leaving the Council in a resilient financial
position to move towards Local Government Reorganisation.
 
The Strategic Director and Chief Financial
Officer informed members that the Financial Settlement had been
received on 9 February.  She advised
that there had been an increase of £83,120 for homelessness,
rough sleeping and Domestic Abuse Services which was
welcomed.  She reiterated that the
Council was in a strong position in terms of financial
resilience.
 
Members welcomed the budget, in
particular:
 

·        
The additional funding available for the environment supporting
improvements to waste and recycling;

·        
funding to strengthen hardship support for residents;

·        
extra support for skills which would improve the life chances for
many residents;

·        
the increase in Members’ Local Community Budgets and the
funding allocated to the 80th Anniversary
celebrations.
 
The Strategic Director and Chief Finance
Officer and her team were thanked for the work put in to this
year’s budget.
 
It was RESOLVED:
 
1.   
That the 2025/26 revised net expenditure on the General Fund of
£10,585,490 as set out in paragraph 4.8.1 be
approved.

2.   
That for 2025/26 the sum of £250,000 be transferred to the
Capital earmarked reserve to support the Draft Capital Strategy as
set out in paragraph 4.2.6 and be included in the revised net
expenditure of £10,585,490.

 
3.   
The draft General Fund Budget for 2026/27 of
£13,587,330 be proposed, with a contribution to
balances of £241 and a Band D Council Tax of
£253.78, (assuming a 2.99% Council Tax
increase).

4.   
The updated position on the General Fund Medium Term Financial
Strategy (MTFS) as summarised in section 4.10 be noted.

5.   
The minimum level of General Fund reserves of
£3,648,355, based on the 2026/27 risk assessment of
balances, as shown at Appendix C to this report, be approved.

 
6.   
The contingency sum of £500,000 within which the
Cabinet can approve supplementary estimates (in addition to the
General Fund net budget), be approved for 2026/27 (reflecting the
level of balances available above the minimum amount).  With a further £500,000 approved
specifically for additional Local Government Reorganisation
transition costs if required.
 
7.   
The 2026/27 Balancing the Budget options as set out in section 4.5
and Appendix A of the report, totalling £84,640 for
the General Fund, be included into the Council’s budget
setting processes.
 
8.   
That the one-off growth bids of £589,000 as set out in
paragraph 4.6.5-4.6.6 and detailed in Appendix G be approved.
 
9.   
That the pressures identified in sections 4.2 and 4.7 to this
report be noted.
 
10. That the 2026/27 Balancing the
Budget growth options as set out in section 4.6 and Appendix B,
totalling £145,140 (and £95,140 from 2027/28)
for the General Fund, be included in the Council’s
budget.
 
11. That the sum set aside of
Local Enterprise Board (LEP) loans of £500,000 be
approved for 2026/27 and for future years the amounts set out in
paragraph 4.2.2 of the report.
 
12. That for 2026/27 the sum of
£1,200,000 be approved to support the Draft Capital
Strategy as set out in paragraphs 4.2.5-4.2.7.
 
13. That for 2026/27 the use of
£500,000 Extended Producer Responsibility (EPR)
funding for the purchase of two new freighters be approved as set
out in paragraph 4.1.14 and also the use of EPR grant funded
recycling initiatives of £751,160 be approved as set
out in Appendix F and paragraph 4.1.15.
 
14. That the sums included in the
2026/27 Budget for Local Government Reorganisation (LGR) transition
budgets of £560,000 be approved and for future years
as set out in paragraph 4.2.4.
 
15. That the ringfencing of
£2,000,000 of Business Rates gain reserves for the
repayment of LEP loans as set out in paragraph 4.10.6 be
approved.
 
16. That the Council Tax Support
scheme for 2026/27 as set out in paragraphs 4.3.6-4.3.10 be
approved.
 
17. That the Section 25 Statement
on Robustness of Estimates and Adequacy of Reserve as set out in
Appendix D be approved.
 
18. That the Equalities Impact
Assessment (EQIA) for the 2026/27 General Fund budget be noted,
(Appendix E) .
 
19. That the feedback on the
budget from Overview and Scrutiny as set out in Para.4.13.1 and
public consultation in section 4.14 be noted.