The Cabinet of Hertfordshire Council met on Wednesday 14 January 2026 to approve the draft budget for 2026/27 and the Medium-Term Financial Strategy (MTFS) as a basis for seeking feedback. They also approved the Hertfordshire Economic Strategy 2025-2035.

Hertfordshire Economic Strategy 2025-2035

The Cabinet approved the Hertfordshire Economic Strategy 2025-2035, which sets out a vision for the county to become the UK's innovation heartland by 2035. The strategy identifies five key priorities: Digital creativity at the heart of business; Hertfordshire works for everyone; Commercialisation, innovation and sustainability; Places and communities thrive; and Hertfordshire's place in the world. Two wider priorities for the Local Growth Plan were also outlined: building infrastructure for competitiveness and resilience, and valuing the natural and built environment fully. The strategy aims to attract public and private investment and will serve as a foundation for future devolution arrangements, including the potential establishment of a Mayoral Combined Authority.

Budget 2026/27 and Medium Term Financial Strategy

The Cabinet agreed the draft 2026/27 budget and Medium-Term Financial Strategy (MTFS) as the basis for seeking feedback from Service Cabinet Panels, the Overview & Scrutiny Committee, and the Resources and Performance Cabinet Panel. This budget aims to deliver vital services and support Hertfordshire's residents and businesses despite facing unprecedented financial pressures, including a loss of £42 million a year in Government funding over the next three years.

Despite these challenges, the budget includes an additional £108 million investment in services such as children's services, SEND support, and adult social care. A capital programme of £1.3 billion over the next four years will also support SEND school places, roads and transport, and the provision of supported housing and care accommodation.

To balance the budget, the Council will increase income, deliver record levels of efficiencies and savings, and focus on prevention and innovation. However, to protect essential services, a 2.99% Council Tax increase is proposed, along with a 2% Adult Social Care precept, in line with national assumptions. The Cabinet also approved the release of schools budget data to the Department for Education.