The Group Finance Director submitted a report to propose a Medium-Term Financial Strategy and the 2026/27 Budget for consultation.

Cabinet is recommended to:

1.    Approve the 2026-27 General Fund and Housing Revenue Account budgets for consultation and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-10, noting:

a.    The Council’s General Fund Budget Requirement of £30.945 million for   2026/27 and an increase in the Band D Council Tax of 2.99% or £10.67 per annum representing a Band D Council Tax of £367.38 per annum assuming it is confirmed that the authority is able to do so.    

b.    The Housing Revenue Account budget for 2026/27 of £68.2 million and an increase of 4.8% .(average of £8.47 per week) in social dwelling rents from 1 April 2026 (see paragraphs 90-92) giving a revised weekly average social rent of £143.40 as set out in Appendix 5. 

c.     The increase in shared ownership rental in accordance with the lease as shown in paragraph 93-94 

d.    The General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6. 

2.    Agree the fees and charges shown in Appendix 7  

3.    Delegate to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 29-30 of the report. 

Cabinet resolved to:

1. Approve the 2026-27 General Fund and Housing Revenue Account budgets for consultation and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-10, noting:
   1. The Council’s General Fund Budget Requirement of £30.945 million for   2026/27 and an increase in the Band D Council Tax of 2.99% or £10.67 per annum representing a Band D Council Tax of £367.38 per annum assuming it is confirmed that the authority is able to do so.    
   2. The HRA budget for 2026-27 of £68.2 million and an increase of 4.8% + up to £2 for rent convergence (max) for 2026/27 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2026 giving an average weekly increase of £8.47 per week, and a revised weekly average social rent of £143.40 as set out in the Financial Implications section of this report.
   3. The increase in shared ownership rental in accordance with the lease as shown in paragraph 93-94 
   4. The General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6. 
2. Agree the fees and charges shown in Appendix 7  
3. Delegate to the Section 151 Officer in consultation with the Board Member for Finance and Assets the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 29-30 of the report. 

The Group Finance Director submitted a report to propose a Medium-Term Financial Strategy and the 2026/27 Budget for consultation.

Councillor Turner presented the report. He reminded Cabinet of the process for the approval of their budget, and that they were presenting the current report for budget consultation, and they would be agreeing the full budget in February of next year. He said that they were awaiting information on their funding settlement from central government and that this had caused delays in their budget setting process. He noted that their approach had been cautiously optimistic and that he anticipated that there would be more change between the consultation and final recommendation than normal, due to the delays they had faced. He outlined some of the implications of Local Government Reorganisation on the four-year MTFS but said that it was their view that it was still sensible to have this four-year plan in place. He said that there were positive points in the budget, including funding for council homes. Councillor Turner commended the officers involved for their work in putting the budget together for consultation.

Nigel Kennedy, Group Finance Director, outlined the lack of certainty they had in this budget process, in part due to the implications of Local Government Reorganisation and the delays from central government.

 Councillor Arshad thanked the officers and team for their hard work in putting the budget together for consultation.

Councillor Turner noted that there was a change in the recommendation 1 b in the report. It would now read as following:

The HRA budget for 2026-27 of £68.2 million and an increase of 4.8% + up to £2 for rent convergence (max) for 2026/27 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2026 giving an average weekly increase of £8.47 per week, and a revised weekly average social rent of £143.40 as set out in the Financial Implications section of this report.

Councillor Turner said that the change in the recommendation was to provide cover for the Council in the event of central government proposing any unforeseen restrictions or changes.

Including the change in recommendation 1b,

Cabinet resolved to:

1. Approve the 2026-27 General Fund and Housing Revenue Account budgets for consultation and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-10, noting:
   1. The Council’s General Fund Budget Requirement of £30.945 million for   2026/27 and an increase in the Band D Council Tax of 2.99% or £10.67 per annum representing a Band D Council Tax of £367.38 per annum assuming it is confirmed that the authority is able to do so.    
   2. The HRA budget for 2026-27 of £68.2 million and an increase of 4.8% + up to £2 for rent convergence (max) for 2026/27 (subject to any subsequent cap on increases imposed by central government) in social dwelling rents from 1st April 2026 giving an average weekly increase of £8.47 per week, and a revised weekly average social rent  ...  view the full minutes text for item 111