Purpose

To consider the draft Council Budget 2026/27
and the Four Year Medium Term Financial Plan

Content

That
Cabinet note and endorse the following draft budget proposals,
which are subject to the outcomes of consultation, due to commence
on 17 December 2025, and confirmation of the Local Government
Finance Settlement.  The decision
includes noting the Capital Programme and approving additional
schemes and changes to the Programme with it noted that the
decision to release funding will be made by the s151 Officer once
confirmation of available funding has been received:

(a)        the
draft General Fund Revenue Budget for
2026/27 (attached at Annex A1 to the report)
and the latest MTFO forecast for 2026/27 to 2029/30 (attached at
Annex A2 to the
report);

(b)       to
request approval to proceed with the draft budget and initiate
a public consultation starting on 17 December 2025;

(c)        to note the
new budget pressures attached at Annexes A3 and A4 to the
report;

(d)       to note the proposed
budget reductions and additional income proposals attached at Annex
A5 to the report;

(e)       
the provisional
Council Tax at Band D of £2,192.12 for the Milton Keynes
element of the Council Tax be agreed for
consultation,
a 4.99% increase on the previous year (2.99% core increase plus a 2.00% Adult Social Care
Precept);

(f)        the Council’s current estimate of the
2026/27 Business Rates Baseline shown in table 4 of Annex A to the report, retaining the delegation to
the Director of Finance and
Resources to
finalise this Baseline, based on the latest data for submission to
Ministry of Housing, Communities and Local Government
(MHCLG) in January 2026;

(g)       
the estimated position
for the Dedicated Schools Grant and the
planned consultation with the Schools Forum;

(h)       that the Director -
Children’s Services makes decisions around the school funding
formula, the funding arrangements for pupils with high needs and
the early year’s single funding formula for 2026/27 in
consultation with the Cabinet Members for Children and Families,
and the Director for Finance and Resources.

(i)        
the proposed fees and charges for 2026/27, which are exceptions to the Income and Collection
Policy (attached at Annex A6 of the
report);

(j)         the
draft forecast parking surplus of £13.326m (attached at Annex
A7 of the report);

(k)        the draft
Capital Programme for 2026/27 to 2030/31 (attached at Annex D1 of
the report);

(l)        
the resource allocation for the draft Tariff
Programme (attached at Annex D2of the
report);

(m)      the equalities impact assessments for the draft
Revenue Budget 2026/27, as set out in Section
4 and detailed in Annex F of the report; and

(n)       the draft Housing
Revenue Account (HRA) budget which has been updated for technical
adjustments, revenue pressures and savings and a refresh of the
capital programme, including a rent increase of 4.8% for tenants
and 2.7% for shared owners (attached at Annex
B of the report).