Purpose

To approve the Council’s Revenue Budget
and Capital Plan Budget for 2026/2027 including the setting of fees
and charges for Council services and Capital Strategy.

There are currently a number of unknown elements in respect of
Government’s financial settlement including the implications
of the Autumn Budget expected end November 2025 and the
Government’s provisional local government finance settlement
due to be announced in December 2025. The Cabinet will launch its
draft budget for six weeks consultation at its Cabinet meeting on 2
December 2025, with the final recommendations being considered by
Cabinet and Council in February 2026. As the budget proposals will
not be submitted before 8 February 2026, Standing Orders F2.7 to
2.11 will not apply (whereby the Council provides any objections to
the Cabinet to review before determining the budget).

Decision

That Cabinet recommend
to Council;
 

that Council Tax is
increased by 4.99% for 2026/27, which includes a 2.99% increase
plus a 2% levy for Adult Social care);

 

that for 2026/27 net
revenue expenditure of £205.3m, resulting in a Council Tax
requirement of £101.2m, (a 4.99% increase in Council Tax, of
which 2% is for Adult Social Care), be approved;

 

that the proposed
Fees and Charges for 2026/27 be approved.

 

that, in accordance
with the requirement of the Local Government Act 2003, the advice
given by the Chief Finance Officer with respect to the robustness
of the budget estimates and the adequacy of the Council’s
Reserves, (as set out in the Reserves Statement published in
November 2025), be noted;

 

that it be noted that
the Brixham Town Council precept for 2026/27 of £656,123 will
be included as part of the Torbay Council budget for Council Tax
setting purposes;

 

that the Capital
Strategy 2026/27 and Treasury Management Strategy 2026/27 be
approved as published for Cabinet on 2 December 2025;

 

that any technical
adjustments to the Revenue and Capital Budget be delegated to the
Section 151 in consultation with the Cabinet Member for Housing and
Finance; and

 

that it is agreed
that any underspend from the current financial year, (2025/2026),
will be considered for allocation into priority areas, which
take into account the consultation
results on the 2026/2027 budget.

Reasons for the decision

The Council has a
statutory obligation to set a budget each financial year and must
take account of all factors when setting the budget.  The Cabinet’s response to the
recommendations of the Overview and Scrutiny Board were set out in
the submitted report.

Alternative options considered

None