The Executive of North Northamptonshire Council met on Tuesday 10 February 2026 to approve the council's final budget for 2026-27, including a council tax increase, and to adopt the Housing Revenue Account budget and Treasury Management Strategy. The meeting confirmed a balanced budget for the upcoming financial year, which includes significant investment in adult social care and children's services, alongside a 4.99% council tax increase. The Housing Revenue Account budget was also approved, proposing a 4.8% rent increase in line with government policy, and the Treasury Management Strategy was endorsed to ensure prudent financial management.

General Fund Final Budget 2026-27, Medium-Term Financial Plan and Capital Programme 2026 to 2030

The Executive approved the General Fund Final Budget for 2026-27, the Medium-Term Financial Plan, and the Capital Programme for 2026 to 2030. This key decision recommends to the Council the adoption of a net revenue budget of £891.3m, which includes the Dedicated Schools Grant. A significant aspect of the budget is the proposed council tax increase of 4.99%, comprising a 2.99% increase in the 'core' council tax and an additional 2% for the Adult Social Care Precept. This increase is intended to address pressures of £47.3m, including the reversal of one-off funding, while also aiming to achieve savings, efficiencies, and income of £20.1m. The budget also includes a provisional Dedicated Schools Grant budget of £458.8m, pending the final settlement from the government.

Councillor Graham Cheatley highlighted the challenging financial landscape, both nationally and locally, with rising demand and demographic shifts. He stated that the budget was balanced, responsible and in line with the Corporate Plan, aiming to protect vital services while enabling transformation and strengthening early intervention in adult social care and children's services. Councillor Elizabeth Wright emphasised the continued pressures on children's services, noting that the budget ensures a careful balance for children by supporting the direction of travel of early help and stability and strengthening our role as corporate parents. She added that Protecting children and the vulnerable was not optional. Councillor Kirk Harrison confirmed that the budget maintained safe services and met legal duties. The Chair, Councillor Martin Griffiths, welcomed the budget as responsible, pragmatic and one that would deliver on our challenges, acknowledging the difficult financial situation.

The decision also delegates authority to the Executive Director of Finance (Section 151 Officer), in consultation with the Executive Member for Finance, Efficiency and Change, to agree any necessary variations to the budget before 1 April 2026. Furthermore, authority is delegated to the Executive Director of Finance to agree the use of specific reserves, including the Transformation Reserve, Public Health Reserve, Waste Management Reserve, Adult Social Care Reserve, Smoothing Reserve, and Business Rates Retention Reserve, to provide flexibility in managing the overall budget during 2026-27. The Executive also noted that the financial position was based on the Provisional Local Government Finance Settlement announced on 17 December 2025, and that some figures might be subject to change pending the Final Local Government Settlement.

Housing Revenue Account (HRA) Final Budget 2026-27 and Medium-Term Financial Plan

The Executive recommended to Full Council the adoption of the 2026/27 Housing Revenue Account (HRA) budget and the HRA Medium-Term Financial Plan for 2027/28 to 2030/31. A key element of this decision is an increase in dwelling rents of 4.8% for 2026/27, which adheres to the Ministry of Housing, Communities and Local Government rent setting formula. Claire Edwards, Executive Director of Finance, explained that the HRA is a ringfenced account that does not impact council tax and that consultation had taken place with tenants.

Councillor Graham Cheatley highlighted that the proposed budget was balanced and sustainable, meeting strategic landlord responsibilities and funding the day-to-day management of homes, capital delivery, safety, and compliance. He noted that the rent increase remained affordable and that there would be significant investment to ensure homes are safe and well-maintained. He also mentioned that the budget would support the homeless and rough sleeper strategy by maintaining good quality temporary accommodation. Councillor Brian Benneyworth welcomed the budget, stating it fundamentally protected homes and the wellbeing of many of our residents and protected our core landlord services. He added that it would continue to ensure planned maintenance and improvements and continued support to the most vulnerable tenants. The Executive also noted the forecast reserves for the HRA up to 2030/31.

Treasury Management Strategy

The Executive endorsed the contents of the report and recommended the proposals on Treasury Management to the Council for approval. This includes the Treasury Management Policy, the Treasury Management Strategy Statement and Prudential Indicators for 2026-27, the Minimum Revenue Provision (MRP) Policy, and the Investment Strategy. The report presented the Annual Treasury Management Strategy Statement, which outlines the Council's strategy for ensuring its capital investment plans are prudent, affordable, and sustainable, and that cash balances are appropriately invested.

Claire Edwards, Executive Director of Finance, explained that the Strategy underpins the responsibility to deliver the capital programme and includes capital considerations, borrowing, and investment. Councillor Graham Cheatley stated that the Strategy supports the financial stability of the Council and is a statutory requirement prepared in line with relevant Codes. He noted that the financial environment is dynamic, with borrowing costs remaining elevated, and that the Strategy takes a forward-looking approach with a disciplined and risk-averse approach to borrowing to safeguard taxpayers' money. Councillor Kirk Harrison welcomed the Strategy, confirming it is a statutory requirement aligned with national guidance and had been considered by scrutiny without any new spending decisions. The decision also delegates responsibility for the implementation and monitoring of treasury management decisions to the Section 151 Officer.