Decision

For the reasons set
out in this report and its appendices, Cabinet RESOLVED:
 
2.1 To agree, for
the purposes of scrutiny and engagement, the draft 2026/27 Revenue
Budget proposals, as summarised in this report and detailed in the
accompanying appendices.
 
2.2 To note the
revised MTFS position following the latest updates to financial
forecasts, and the release of the Provisional Local Government
Finance Settlement on the 17th December
2025.
 
2.3 To note the
intended allocation of the Dedicated Schools Grant (DSG) in section
9, including: the Schools block transfer
to the High Needs block; the DSG deficit position; the drop in
pupil numbers in the borough and the strategy to manage the impact
of that.
 
2.4 To note the
approach intended for the allocation of the Public Health Grant in
section 13.
 
2.5 To agree an
average 4.8% rent increase on all Council-owned rented
accommodation (including homes managed under a PFI contract), and
service charge increases as set out from section 11.7 of this
report.
 
2.6 To agree, for
the purposes of the scrutiny and engagement process, the draft
Capital Strategy for the year 2026/27, as summarised in this report
and detailed in Appendix D.
 
2.7 To receive and
approve both the final 2026/27 Revenue and Capital budget proposals
informed by the results of the scrutiny and engagement, at its
meeting on the 17th February 2026 for
recommendation to full Council on 26th February 2026.
 
2.8 To agree the
Community Infrastructure Levy (CIL) Infrastructure List 2026/27
which remains unchanged from the previous year (refer to section
10.31).
 
2.9 To note that
MHCLG have advised that applications for EFS, by any Council, are
unlikely to be determined until late February 2025 and that we
should consider setting a “reserve” date for Full
Council early in March, the arrangements for which are in hand.
 
2.10 To note the
reduction in the budget for the People Powered Places 2025 to 2027
programme, drawn from the Neighbourhood CIL, from £1.6m to
£800k, so that £800k can be used for environmental
public realm improvements in accordance with CIL use
requirements.
 
Alternatives
considered:
 
1. 
The Council has a legal duty to set a balanced budget in 2026/27,
so whilst there are alternatives to the savings and growth measures
proposed in this report, the budget would still have to total and
match to the annual resources available.
 

2. 
Savings options were considered in the following areas, but the
administration does not propose to implement these options.

 
•  Changes to the offer to the workforce
in terms of pay and terms and conditions. £5m
•  Community Safety service reductions
£0.2m.
•  Public Realm and Street Scene savings
£1.2m.
•  A Council Tax rise of above 4.99%
£4.8m