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Salford City Council - Record of Decision (Cabinet)
I Paul
Dennett, City Mayor, in
exercise of the powers contained within the City Council
Constitution do hereby
approve the proposed Revenue Budget for
2026/27 as set out in this report and refer it for approval by Full
Council on 25th February 2026. In doing so I:  

Note
and support assumptions made in preparing the revenue budget for
2026/27 and accordingly approve a revenue budget of
£463.351m. 

Approve in accordance with the formal resolution set
out in Appendix 2: 

That
the revenue estimates for 2026/27 as set out in this report be
approved. 

That
the council confirms the decision Deputy City Mayor and Lead
Member for Finance, Support Services and Regeneration on 6 January
2026 to approve the calculation of 80,709 as the
council’s council tax base for the year 2026/27 (Item T
in the formula in Section 31B (1) of the Local Government Finance
Act 1992, as amended). 

That
the council confirms the action of the Chief Finance Officer (S151
officer) in approving a business rates estimate which
shows £147.827m as the council’s share of its
retained business rates and disregarded amounts for
2026/27. 

That
the following amounts be now calculated by the council for the year
2026/27 in accordance with Sections 31 to 36 of the Local
Government Finance Act 1992 (the Act): 

£ being the aggregate of the amounts which the
council estimates for the items set out in Section 31A (2) of the
Act representing the gross revenue budget of the
council. 

£ being the aggregate of the amounts which the
council estimates for the items set out in Section 31A (3) of the
Act. 

£173,944,037 being the amount by which the aggregate
at (a) above exceeds the aggregate at (b) above, calculated by the
council, in accordance with Section 31A (4) of the Act,
as its council tax requirement for the year. (Item R in the formula
in Section 31A (4) of the Act). 

£2,155.20 being the amount at (c) above, divided by
Item T ((2) above) calculated by the council, in accordance
with Section 31B (1) of the Act, as the basic amount of its
council tax for the year. 

Options considered and
rejected were: None
Assessment of
Risk:
The
Council’s budget and financial position is a
key corporate risk that has been highlighted as being
high priority for monitoring and reporting on the Corporate Risk
Register. The proposals in this report have sought to ensure
adequate budget provision for 2026/27 with a clear reporting
of risks with the budget strategy. 
 
Legal Advice
obtained:

The Local Government
Finance Act 1992 sets out what the Council has to base
its budget calculations on and requires the Council to set a
balanced budget for the following year by 11
March.  

 

Section 25 of the Local
Government Act 2003 requires the Council to have regard to the
advice of the Chief Finance Officer (S151 officer) as to the
robustness of the estimates made for the purposes of the
calculations and the adequacy of the proposed financial
reserves. 

 

The Chief Financial
officer has a statutory duty, under Section 151 of the Local
Government Act 1972 and Section 73 of the Local Government Act
1985, to ensure that there are proper arrangements in place to
administer the Council’s financial
affairs. 

The Council’s
Treasury Management activity must be carried out in accordance
with the requirements of the Local Government Act 2003. In
addition, the Local Government and Housing Act 1989 sets out
requirements for local authorities in respect of capital
controls, borrowing and credit arrangements. The
Council is also required to comply with the relevant
secondary legislation including the Local Authorities (Capital
Finance and Accounting) (England) Regulations 2003 (as
amended).  

 

Treasury Management
relates to the management of the Council’s cash
flow, borrowing and cash investments. This involves
seeking the best rates of interest for borrowing, earning interest
on investments, whilst managing risk in making financial decisions
and adopting proper accounting
practice.  

 

The Local Government Act
2003 brought in the current regime for capital finance for local
authorities. It reduced the level of central control over local
authority borrowing and capital
expenditure. 

 

The Local Government and
Housing Act 1989 regulates the operation of the Housing Revenue
Account.  

 

The ‘CIPFA Code of
Practice for Treasury Management in the Public
Services’, contains Treasury Management indicators
and advice on Treasury Management Strategy. Investment Strategy is
regulated by ‘MHCLG Guidance on Local Government
Investments’ issued initially in 2004 and reissued in 2010
and 2018. This guidance includes statutory
guidance.  

 

The aim of the reporting
arrangements as detailed above are to ensure that those with
ultimate responsibility for the treasury management function are
fully aware of the implications of treasury management policies and
activities, and that those implementing policies and executing
transactions have properly fulfilled their responsibilities with
regard to delegation and reporting. 

It is the responsibility
of members to ensure the Council sets a balanced budget for the
forthcoming year. In setting such a budget members and officers of
the Council have a legal requirement to ensure it is balanced in a
manner which reflects the needs of both current and future
taxpayers in discharging these responsibilities. In essence
this is a direct reference to ensure that council sets a
financially sustainable budget which is mindful of the long-term
consequences of any short-term
decisions.  

 

Although the calculation
of the council tax requirement and the formulation of plans and
strategies for control of the Council’s borrowing,
investments, capital expenditure and for determining the
Council’s minimum reserve position are executive functions,
the approval of such plans and strategies is a function reserved to
full Council. 

 

The process to be
followed to set the budget is therefore that the City Mayor (
with Cabinet) recommends a draft budget to Council for
approval. If the majority of Council does not
approve the budget it will be referred back to the
City Mayor. The City Mayor will consider the comments of Council
and then present a further draft budget to Council, which can only
be rejected by a two thirds majority of
Council. 

 

The financial position
must be closely monitored and members must satisfy
themselves that sufficient mechanisms are in place to ensure the
delivery of savings as well as to ensure that any new expenditure
is contained within the available
resources. 

In approving the budget,
members must also have regard to the Public Sector Equality Duty in
making their decision. Further information in respect of this duty
is set out earlier in this report. 

 

It is important to note
that section 106 of the Local Government Finance Act, 1992 places
restrictions on Councillors voting if they are in arrears with
their Council Tax. Any Councillor who is two months or more in
arrears is not allowed to vote on certain issues relating to the
Council Tax. These include the setting of the Council Tax itself
and determining the Council’s budget. Since every
item of expenditure might affect budget decisions, the real effect
of the provisions is wide ranging. 

 

If a Member fails
to disclose at any Council meeting that he or she is two
months or more in arrears, or votes on issues covered by Section
106, then he or she is committing a criminal offence. Prosecution
in the Magistrates Court could lead to a fine of up to £1,000
per offence. There are no councillors who fall within this
provision and therefore all Councillors are entitled to vote at the
relevant meetings in relation to this report. The view of the
Monitoring Officer is that the proposed budget meets the legal
obligations set out above and ensures that the Council sets a
balanced budget.  
Financial Advice obtained: As detailed in the report
Procurement Advice obtained:
The
procurement team will continue to work collaboratively with
stakeholders, service areas, suppliers and partner
organisations to deliver best value,
service/budget efficiencies and improved outcomes,
ensuring that all revenue budget savings identified are
delivered and reported
as required.  
HR Advice obtained: Not applicable
Climate Change Advice obtained:
Not applicable
 
The following documents have been used
to assist the decision process:
Revenue Budget 2026/27
Contact Officer:  Rachel Rosewell         , Chief
Finance Officer       
           
Telephone number: 07855066602
 
The
appropriate scrutiny to call-in the decision is the Overview and
Scrutiny Board

Signed:
Paul Dennett         
Dated: 17th February 2026
           
City Mayor
 

For
Democratic Services use only

 

This decision was
published on  18.02.26                                           

This decision will
come in force at 4.00 p.m. on 25.02.26 unless it is called-in in accordance with the
Decision Making Process Rules.