Decision Maker: Cabinet, Policy Review Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: January 14, 2026

Purpose:

Content: Decision   RESOLVED that Cabinet: 1.1) considered the latest draft revenue budget position for 2026/27 set out in section 10 and Appendix B, which shows a net budget requirement of £18,279k (2025/26, £13,965k). 1.2) recommended this draft budget to the Policy Review Committee (at its meeting on 26 January 2026) and to all Members, stakeholders and the public for consultation. 1.3) recommended the proposed 3.0% staff and member pay award to the Personnel Committee and staff for consultation. 1.4) considered the revised Medium Term Financial Plan (MTFP) set out in section 11 and Appendix C, which shows a balanced budgetary position over the three-year financial period from 2026/27 to 2028/29, recommend the MTFP to the Policy Review Committee (at its meeting on 26 January 2026) and to all Members, stakeholders and the public for consultation. 1.5) that the proposals are amended to include the following: a) £200k towards investment in the public realm, including improving street cleaning, litter cleaning patrols and tackling fly tipping.  As well as using £80k from CIL towards specialist vehicles and equipment. b) £150k towards bolstering Community Safety, in particular the Community Enforcement Team.  £50k from reserve funding will go towards a new vehicle. c) £75k to support cultural services and the creative sector through a Screen Investment Growth Fund. d) £10k to increase the Ward Improvement Initiative Scheme from £750 to £1,000 per Member. e) £40k to tackle deprivation with an additional £5k per ward Member in the three most deprived wards.   Reasons for decision   The Authority is required by law to set a balanced budget i.e. the anticipated ongoing costs of providing services should be equal to anticipated funding resources. Further, it is vital that the budget is sustainable over the long term while achieving the Council’s corporate goals.   It is critical that the revenue budget is set in such a way that ensures the Council allocates its limited available resources effectively and efficiently, in order to continue providing value for money services and meet both its statutory obligations and its aims and objectives as outlined in the Hertsmere Vision 2022/27 and the Corporate Plan.   This report presents a balanced budget position for 2026/27, having taken into account previously agreed as well as known and anticipated service pressures and efficiencies and the available funding or core spending power (CSP) set out in the provisional financial settlement for 2026/27 (adjusted slightly to reflect Hertsmere’s actual ability to raise Council Tax locally).   Also as resolved by the Council, the MTFP is required to be reviewed and updated annually and approved as part of the annual revenue budget setting process and this report presents a revised medium term financial plan covering the three-year period 2026/27 to 2028/29.   Alternative Options Considered   The Local Government Act 1992, Section 32 requires that all known and anticipated revenue budgetary requirements of the Authority for the forthcoming year be calculated prior to setting the Council Tax. This must be done no later than 11 March in the preceding financial year. Therefore, there are no alternatives other than to agree a balanced budget by the statutory deadline.   Setting a balanced budget is itself a statutory requirement whereby the Council’s net budgetary requirement must be fully financed from the available funding.