Decision Maker: Cabinet, Council

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: February 11, 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)           considered the consultation responses set out in section 13 and specifically: the recommendation of the Personnel Committee for a pay award for 2026/27 of 4.0%, which would be an additional cost of £200k per annum to be funded as discussed in paragraph 13.14; 一                   the addition of £40k housing support funding as discussed in paragraphs 13.20 and 13.21; and 一                   the additional funding of £58k for the Electoral services restructure agreed by the Personnel Committee, paragraphs 13.18 and 13.19   1.3)           That subject to 1.1 and 1.2 above, Cabinet recommended the draft 2026/27 revenue budget to full Council for approval. 1.4)           considered the revised Medium Term Financial Plan (MTFP) set out in section 11 and Appendix C, which showed a balanced budgetary position over the three-year financial period from 2026/27 to 2028/29, and recommended the MTFP to full Council for approval.   Reasons for decision   The Authority was 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.   The 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 required 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 were 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.