Purpose

To recommend to Council the proposed 2026/27
revenue budget, Medium Term Financial Strategy and the Treasury
Management Strategy

Decision

That Cabinet recommends to Council for
approval:

a)   
the council tax base of 74,315.25 Band D equivalents in
2026/27;
 

b)   
an increase in core council tax for 2026/27 of 2.99%;
 

c)    
an additional precept in respect of adult social care costs of 2%
applied to council tax in 2026/27 resulting in a total council tax
increase of 4.99%, increasing the Band D charge from
£1,969.36 to £2,067.63 for Herefordshire Council in
2026/27;
 

d)   
the balanced 2026/27 revenue budget proposal totalling £234.1
million, subject to any amendments approved at the meeting,
specifically the net spending limits for each directorate as at
appendix C;
 

e)   
delegates to the section 151 officer the power to make necessary
changes to the budget arising from any variations in central
government funding allocations via general reserves;
 

f)     
the Medium Term Financial Strategy
(MTFS) 2026/27 to 2029/30 at appendix A be approved;
 

g)   
the Treasury Management Strategy at appendix D be approved;
 

h)   
the responses to scrutiny committee recommendations at appendix G
to be approved; and
 

i)     
that any further additional funding above that assumed in this
revenue budget and received in the Final Local Government Finance
Settlement for 2026/27, is applied to fund the revenue budget with
a corresponding reduction in the reserve funding assumed from the
Business Rates Risk Reserve

Alternative options considered

1.    
It is open to Council to recommend alternative spending proposals
or strategies; however, given the legal requirement to set a
balanced budget, should additional expenditure be proposed
compensatory savings proposals must also be identified. If it is
proposed to spend less, the impact on service delivery of the
proposed reduction should be considered.
 

2.    
Council can agree a council tax increase above the referendum
principle levels. This is not recommended as doing so would require
the increase to be subject to a local referendum, incurring
additional costs to the council.