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Councillor Liz Leyshon proposed the
recommendations, which were seconded by Councillor Bill Revans.
 
Having been duly proposed and seconded, the
Council Resolved to:-

·      
NOTE, that the Executive had been asked to approve the
establishment of a cross-party Deficit Management Plan (DMP)
Standing Panel to provide Member oversight of the DSG SEND Reform
Plan and DMP and associated risks; and that authority be delegated
to the Executive Lead Member to determine the membership, terms of
reference and commencement arrangements for the Board.
 

·      
Consider the key findings and the specific recommendations
(highlighted in red) of the Scrutiny Committee Corporate and
Resources in relation to the scrutiny of the Budget Proposals
2026/27, as set out in Appendix W, together with the Executive's
response to those (Appendix X), when finalising the Budget
Proposals 2026/27.
 
Having been duly proposed and seconded, the
Council Resolved to note and approve:-
 
In respect of the Robustness of the Budget

a)   
NOTE the conclusions of the Council’s Interim Chief Finance
Officer (Section 151 Officer) in his Section 25 report confirming
the robustness of the Budget estimates and the adequacy of reserves
for 2026/27 and his warnings about the need to get further grip on
forecast deficits, accelerate the Council’s Transformation
Programme and to re-commit to achieving Financial Sustainability
from 2027/28 without recourse to EFS or reserves.
 
In respect of the General Fund Revenue Budget
2026/27

b)   
APPROVE the General Fund Net Revenue Budget for 2026/27 of
£717.521m including the appendices set out in (i) to (vii)
below:
                       
i.        
The individual Executive and Service Directorate Budgets for
2026/27 as outlined in Appendix A
                      
ii.        
MTFP Movements set out in Appendix E since the report that was
presented to Executive in December 2025
                     
iii.        
The Specific Revenue Grants Schedule 2026/27 set out in Appendix
F
                    
iv.        
The Savings and income generation plans in Appendices H(i) and
H(ii), including the MTFP Equality 2026/27 Equality Due Regard
Consideration in Appendix L
                      
v.        
Fee and Charges Policy in Appendix J(i) and changes to the Fees and
Charges schedule for 2026/27 set out in Appendix J(ii).
                    
vi.        
Additional funding for new spending requirements arising from
pressures/growth as set out in Appendix M.
                   
vii.        
The ‘minded to’ offer from MHCLG in relation to
£30.000m of Exceptional Financial Support and the conditions
attached to the offer as set out in Appendix Z
 

c)   
To NOTE
                       
i.        
That the level of General Reserves was maintained within the
risk-based assessment range of £37.126m minimum to
£74.252m appropriate level.
                      
ii.        
The MTFS 2026/27 – 2030/31 Strategy Document set out in
Appendix D and the MTFP for the next five years set out in Appendix
B
                     
iii.        
The 2026/27 Budget Consultation Feedback (Appendix V)
 
In respect of the Dedicated Schools Grant
(DSG) NOTE

d)   
The overall Dedicated Schools Grant allocation of £626.996m
for 2026/27 and breakdown by block set out in Appendix U(ii).

e)   
That spending on the Dedicated Schools Grant, set out in Appendix
U(i) was forecast to exceed the funding provided by government by
£45.783m in 2025/26 and was projected to reach a cumulative
deficit of £107.775m by 31 March 2026 (£116.800m for
the High Need block within the overall DSG).
 
In respect of the Schools Block Funding
NOTE

f)     
The Schools Block Funding as outlined in the report from paragraph
146 to 152 onwards and Appendix U(ii) to the report; and

g)   
Agree to delegate authority to the S151 Officer to approve the
Schools Block funding in future years in consultation with the
Executive Lead Members responsible for Finance and Children's
Services.
 
In respect of the Earmarked Reserves to
NOTE

h)   
The Earmarked Reserves reprofiling as set out in Appendix N.

i)     
The overall estimated position of Earmarked Reserves outlined in
Table 16 and the proposed use of reserves detailed in Appendix N
which included the estimated use of Earmarked Reserves during the
year.

j)     
Approve the contribution to reserves of £7.000m for the DSG
Deficit (HNB) reserve and £2.000m for the Hardship Fund.
 
In respect of the General Fund Capital
Programme to APPROVE

k)   
The revised Capital Programme of £860.500m 2025/26 to
2030/31, as set out in Appendices O(iii)) and O(iv).

l)     
The Capital Investment Strategy for 2026/27 set out in Appendix
P.

m) 
£303.199 new General Fund Capital proposals 2026/27 to
2030/31 set out in Appendix O(i) and

n)   
Transformation expenditure of up to £9.500m and DELEGATE
authority to the Executive Director of Resources, Strategy and
Transformation, in consultation with the Section 151 Officer and
the Lead Member for Transformation, Human Resources and Localities,
to finalise and enter into the deliverable orders with Newton
Consulting for the development of the business cases, as set out in
Appendix K.
 
In respect of the Treasury Management Strategy
and Prudential Indicators 2026/27, to APPROVE

o)   
The Treasury Management Strategy 2026/27 set out in Appendix Q.

p)   
The Minimum Revenue Provision Policy (MRP) Statement 2026/27 set
out in Appendix R.

q)   
The Flexible Use of Receipt Strategy 2026/27 set out in Appendix
S.

r)    
The Non-Treasury Investment Strategy 2026/27 set out in Appendix
T.
 
In respect of Council Tax to APPROVE

s)   
The calculations for determining the Council Tax requirement for
the year 2026/27 in accordance with the Local Government Finance
Act 1992, which would be set out in the Council Tax Resolution
included in the papers for Full Council.

t)     
The Council Tax precept of £14.65, included in the overall
band D Council Tax for the shadow Somerset Rivers Authority
(representing no increase for 2026/27). This resulted in a Council
Tax Requirement of £3,190,293 for the Somerset Rivers
Authority.

u)   
The increase in Council Tax for a band D property for Somerset
Council, including the Somerset Rivers Authority Precept, by 4.99%
or £92.69 per annum for 2026/27, giving a Band D Council Tax
of £1,950.30 per year, being:
a.   
The General Band D Council Tax by 2.99% or £55.54 per annum,
being the maximum permitted without a referendum; and
b.   
The Adult Social Care Precept by 2.00% or £37.15 per
annum.

v)   
Special Expenses of £129,145 relating mainly to closed church
yards in the former Mendip and South Somerset area.

w)  
The precept requirement for Somerset Council of £424,840,944
(including Special Expenses Rate) £424,711,799 (excluding
Special Expenses Rates).

x)   
The Council Tax resolution as shown in Appendix Y, in accordance
with

y)   
Sections 30 and 36 of the Local Government Finance Act 1992, which
set out the aggregate amounts of Council Tax for 2026/27 for each
part of its area and for each of the categories of dwellings,
incorporating:
·      
The precepting bodies precepts as below:
 

2025/26
£

2026/27
£

Increase
%

Somerset Council

1,593.67

1,649.21

Somerset Council – Social Care

263.94

301.09

Somerset Council
Total

1,857.61

1,950.30

4.99

Police and Crime Commissioner

293.20

308.20

5.12

Devon and Somerset Fire Authority

104.68

109.68

4.78

Sub-Total

2,255.49

2,368.18

5.00

Special Expenses Average

0.71

0.59

(16.90)

City, Town and Parish Council (average)

182.42

191.82

5.15

Total

2,438.62

2,560.59

5.00

 
·      
The Council Tax Base for the year 2026/27, calculated in accordance
with the provisions of the Local Authorities (Calculation of
Council Tax Base) (England) Regulations 1992 as amended and made
under Section 33 (5) of the Local Government Finance Act 1992,
(referred to hereinafter as “the Act”).
 

Legislation

Plain English

1

a

217,767.42

The Council Tax Base 2025/26 for the whole
Council area [Item T in the formula in Section 31B (3) of the Local
Government Finance Act 1992, as amended (the "Act")] and, for
dwellings in those parts of its area to which a Parish precept
related as in Appendix Y(iii).

The Tax Base for the whole District and the
Tax Base for each City/Town/Parish.

 
·      
The Council Tax requirement for the Council’s own purposes
for 2026/27 (excluding Parish precepts and Special Expenses):
 

£

Council Tax
Requirement

2

a

421,521,506

(excluding Parish Precepts and Special
Expenses)

3,190,293

with an additional requirement for the
Somerset Rivers Authority

 
·      
The following amounts calculated for 2026/27 in accordance with
Sections 31B and 34 to 36 of the Act (as amended by the Localism
Act 2011 and Local Government Regulations 2012).
 

£

Legislation

Plain English

3

a

1,542,781,135

being the aggregate of the amounts which the
Council estimated for the items set out in Section 31A (2) of the
Act, taking into account all precepts issued to it by Parish
Councils.

The estimated gross revenue expenditure
(including transfers to reserves and deficits on the collection
fund) for the General Fund, Special Expenses account, other General
Fund revenue reserves and Parish/City/Town precepts
 

b

(1,076,169,693)

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

The estimated gross revenue income (including
the transfer of the surplus on the Collection Fund, formula grant
and transfers from reserves) for the same funds as mentioned
above.
 

c

466,611,442

Being the amount by which the aggregate
expenditure at 3(a) above exceeded the aggregate income at 3(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 31B of the
Act.]
 

The net (expenditure less income) funding
requirement for the General Fund and Special Expenses accounts
plus the Parish precepts issued for the year.
 

d

2,142.71

Being the amount at 3(c) above (Item R), all
divided by Item T (1(a) above), calculated by the Council, in
accordance with Section 31B (1) of the Act, as the basic amount of
it’s Council Tax for the year.

The average Band D Council Tax across Somerset
inclusive of parish precepts and Special expenses. It was not
actually charged anywhere in Somerset but must be calculated by law
as part of the Council Tax setting process.
 

e

41,899,643

Being the aggregate amount of all special
items referred to in Section 34(1) of the Act.

The total of Parish precepts received for the
year and the net Special expenses.
 

f

1,950.30

Being the amount at 3(d) above less the result
given by dividing the amount at 3(e) above by Item T (2 above),
calculated by the Council, in accordance with Section 34(2) of the
Act, as the basic amount of its Council Tax for the year for
dwellings in those parts of its area to which no special items
related.

This was the Band D Council Tax for Somerset
Council (including the Somerset Rivers Authority) only.
 

 
·      
Noting that the Police Authority and the Fire Authority had issued
precepts to the Council in accordance with Section 40 of the Local
Government Finance Act 1992 for each category of dwellings in the
Council’s area as indicated in Appendix Y.