Issue - items at meetings - FINAL GENERAL FUND AND COUNCIL TAX SETTING 2026/27

To consider the Council's draft 2026/27 General Fund Budget, Council Tax Support Scheme and draft proposals for the 2025/26 Council Tax.

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 80^th 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 ... view the full decision text for item 4

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 for Resources and Performance informed Cabinet that for the current year, the budget had increased by £45,000. This included £30,000 of recommended growth to fund a post supporting the Stevenage Valour Hub bid. Looking ahead to 2026/27, she was pleased to advise that there was £589,000 of recommended growth bids, including:

£189,000 to strengthen hardship support for residents through additional Discretionary Housing Payments and the Council Tax Hardship Fund;
£210,000 to support skills and enterprise;
£170,000 to improve our local environment; and
£20,000 to increase local community budgets.

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 penny 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. She stated that this increase, combined with improved funding, meant that the Council could address future budget gaps through annual fees and charges increases, while still investing in the theatre, neighbourhoods and town parks through revenue contributions to capital, ensuring continued support for residents and delivery of the Council’s priorities.