Decision Maker: Cabinet

Outcome: Decision approved (subject to call-in)

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: January 8, 2026

Purpose:

Content: 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