Decision details

Cabinet considered a report setting out the Council's draft 2026/27 General Fund Budget, Council Tax Support Scheme and draft proposals for the 2025/26 Council Tax.

The Portfolio Holder for Resources and Performance advised that next year’s proposed budget assumed a 2.99% increase in council tax which equated to a 14pence increase per week on a band D property.She also advised that the report identified the opportunity to approve a further £600thousand of one-off growth and that Officers would be working with Portfolio Holders to agree a set of options.

Members agreed that the proposed budget put the Council in a strong financial position going into LGR. A number of other comments were also made by Members including:

·         Members and Officers were thanked for their work on producing this positive budget and were particularly pleased with the continued investment into the regeneration of the Town which would improve the economy and provide skills, training and opportunities for the residents of Stevenage;

·         The investment into the Town’s 80^th anniversary celebrations, including events across community and business groups was welcomed;

It was RESOLVED:

1.  That the 2025/26 revised net expenditure on the General Fund of £10,540,490 be approved as set out in paragraph 4.8.1.

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 paragraphs 4.2.5-4.2.7.

3.  That the draft General Fund Budget for 2026/27 of £13,586,060 be proposed (subject to additional growth of £800,000 as set out in section 4.9) for consultation purposes, with a contribution to balances of £1,581 and a Band D Council Tax of £253.78, (assuming a 2.99% Council Tax increase).

4.  That the updated position on the General Fund Medium Term Financial Strategy (MTFS) as summarised in section 4.11 be noted.

5.  That 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.

7.  The 2026/27 Balancing the Budget options as set out in section 4.5 and Appendix A, totalling £84,640 for the General Fund, be included into the Council’s budget setting processes for consideration by the Overview & Scrutiny Committee.

8.  That the pressures identified in sections 4.2 and 4.7 to the report be noted.

9.  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 into the Council’s budget setting processes for consideration by the Overview & Scrutiny Committee.

10.  That the sum set aside of Local Enterprise Board (LEP) loans of £500,000 be approved for 2026/27 and for future years as a minimum as set out in paragraph 4.2.2 for subsequent years.

11.  That for 2026/27 the sum of £1,200,000 be approved to support the Draft Capital Strategy as set out in paragraphs 4.2.5-4.2.6.

12.  That for 2026/27 the use of £500,000 Extended Producer Responsibility (EPR) funding for the purchase of two new freighters as set out in paragraph 4.1.13 be approved.

13.  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.

14.  That the approach to additional growth of £600,000 as set out in section 4.9 of the report be approved and be included into the Council’s budget setting processes for consideration by the Overview & Scrutiny Committee.

15.  That the ringfencing of £2,000,000 of Business Rates gain reserves for the repayment of LEP loans as set out in paragraph 4.11.5 be approved.

16.  That the Section 25 Statement on Robustness of Estimates and Adequacy of Reserve as set out in Appendix D be approved.

17.  That the Equalities Impact Assessment (EQIA) for the council tax increase of 2.99% be noted, (Appendix E)

18.  That the decisions taken on recommendations 2.3 – 2.17 above be referred to the Overview and Scrutiny Committee for consideration in accordance with the Budget and Policy Framework rules in the Council’s Constitution.

19.  That approval be granted for engagement to take place with key partners and other stakeholders in order for their views to be considered as part of the 2026/27 budget setting process.