The Group Finance Director submitted a report to Cabinet to present the outcome of the budget consultation and agree the Council’s Medium Term Financial Strategy for 2027-28 to 2029-30 and 2026-27 Budget for recommendation to Council.

Recommendations: Cabinet is asked to consider the outcome of the public consultation, agree the amendments to the Consultation Budget and recommend that Council resolves to:

1.    Note the approval by Cabinet on 21 January 2026 and subsequently agreed by the Council on 26 January of an increase of 4.8% i.e. CPI+1% in line with the recent Government announcement referred to in paragraph 28 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 Appendix 5 based on a HRA budget as set out in Appendix 4; 

2.    Approve the 2026-27 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-9, noting:

a.    the Council’s General Fund Budget Requirement of £32.185 million for 2026/27 and an increase in the Band D Council Tax of 2.99% or £10.66 per annum representing a Band D Council Tax of £367.38 per annum; and

b.    the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6;

3.    Agree the fees and charges shown in Appendix 7;

Cabinet considered the outcome of the public consultation, agreed the amendments to the Consultation Budget and recommended that Council resolves to:

1.       Note the approval by Cabinet on 21 January 2026 and subsequently agreed by the Council on 26 January of an increase of 4.8% i.e. CPI+1% in line with the recent Government announcement referred to in paragraph 28 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 Appendix 5 based on a HRA budget as set out in Appendix 4; 

2.       Approve the 2026-27 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-9, noting:

a.       the Council’s General Fund Budget Requirement of £32.185 million for 2026/27 and an increase in the Band D Council Tax of 2.99% or £10.66 per annum representing a Band D Council Tax of £367.38 per annum; and

b.       the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6;

3.       Agree the fees and charges shown in Appendix 7;

The Group Finance Director submitted a report to Cabinet to present the outcome of the budget consultation and agree the Council’s Medium Term Financial Strategy for 2027-28 to 2029-30 and 2026-27 Budget for recommendation to Council.

Councillor Turner presented the report. He noted that they had received their funding settlement from government at a late stage. He said that the settlement proved beneficial to the city and that they would be receiving additional funding to address areas such as homelessness. He said that they had reflected on where best to invest the additional funds which had been released and that the changes they were proposing would have significantly positive impacts on the lives of people in the city, including investments to tackle anti-social behaviour and additional gritting. He thanked the officers for their work on the budget. He invited opposition members to discuss their proposed changes and amendments to the budget in cooperation with officers and himself.

Nigel Kennedy, the Group Finance Director, said that the three-year settlement was good for their financial planning. He noted the difficulties they had faced due to the late receival of information from central government. He noted the changes in funding made possible through the settlement and the positive aspects of the budget.

Councillor Brown thanked Nigel and his team for their work on the budget. She noted that they welcomed the three-year settlement, which they had advocated for several years. She said that it was good news that they had been given additional allocation to address areas such as homelessness.

Cabinet considered the outcome of the public consultation, agreed the amendments to the Consultation Budget and recommended that Council resolves to:

1.       Note the approval by Cabinet on 21 January 2026 and subsequently agreed by the Council on 26 January of an increase of 4.8% i.e. CPI+1% in line with the recent Government announcement referred to in paragraph 28 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 Appendix 5 based on a HRA budget as set out in Appendix 4; 

2.       Approve the 2026-27 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Strategy as set out in Appendices 1-9, noting:

a.       the Council’s General Fund Budget Requirement of £32.185 million for 2026/27 and an increase in the Band D Council Tax of 2.99% or £10.66 per annum representing a Band D Council Tax of £367.38 per annum; and

b.       the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6;

3.       Agree the fees and charges shown in Appendix 7;