Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: February 10, 2026

Purpose:

Content: Salford City Council - Record of Decision (Cabinet) I Paul Dennett, City Mayor, in exercise of the powers contained within the City Council Constitution do hereby approve the proposed Revenue Budget for 2026/27 as set out in this report and refer it for approval by Full Council on 25th February 2026. In doing so I:   Note and support assumptions made in preparing the revenue budget for 2026/27 and accordingly approve a revenue budget of £463.351m.  Approve in accordance with the formal resolution set out in Appendix 2:  That the revenue estimates for 2026/27 as set out in this report be approved.  That the council confirms the decision Deputy City Mayor and Lead Member for Finance, Support Services and Regeneration on 6 January 2026 to approve the calculation of 80,709 as the council’s council tax base for the year 2026/27 (Item T in the formula in Section 31B (1) of the Local Government Finance Act 1992, as amended).  That the council confirms the action of the Chief Finance Officer (S151 officer) in approving a business rates estimate which shows £147.827m as the council’s share of its retained business rates and disregarded amounts for 2026/27.  That the following amounts be now calculated by the council for the year 2026/27 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 (the Act):  £ being the aggregate of the amounts which the council estimates for the items set out in Section 31A (2) of the Act representing the gross revenue budget of the council.  £ being the aggregate of the amounts which the council estimates for the items set out in Section 31A (3) of the Act.  £173,944,037 being the amount by which the aggregate at (a) above exceeds the aggregate at (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 31A (4) of the Act).  £2,155.20 being the amount at (c) above, divided by Item T ((2) above) calculated by the council, in accordance with Section 31B (1) of the Act, as the basic amount of its council tax for the year.  Options considered and rejected were: None Assessment of Risk: The Council’s budget and financial position is a key corporate risk that has been highlighted as being high priority for monitoring and reporting on the Corporate Risk Register. The proposals in this report have sought to ensure adequate budget provision for 2026/27 with a clear reporting of risks with the budget strategy.    Legal Advice obtained: The Local Government Finance Act 1992 sets out what the Council has to base its budget calculations on and requires the Council to set a balanced budget for the following year by 11 March.     Section 25 of the Local Government Act 2003 requires the Council to have regard to the advice of the Chief Finance Officer (S151 officer) as to the robustness of the estimates made for the purposes of the calculations and the adequacy of the proposed financial reserves.    The Chief Financial officer has a statutory duty, under Section 151 of the Local Government Act 1972 and Section 73 of the Local Government Act 1985, to ensure that there are proper arrangements in place to administer the Council’s financial affairs.  The Council’s Treasury Management activity must be carried out in accordance with the requirements of the Local Government Act 2003. In addition, the Local Government and Housing Act 1989 sets out requirements for local authorities in respect of capital controls, borrowing and credit arrangements. The Council is also required to comply with the relevant secondary legislation including the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 (as amended).     Treasury Management relates to the management of the Council’s cash flow, borrowing and cash investments. This involves seeking the best rates of interest for borrowing, earning interest on investments, whilst managing risk in making financial decisions and adopting proper accounting practice.     The Local Government Act 2003 brought in the current regime for capital finance for local authorities. It reduced the level of central control over local authority borrowing and capital expenditure.    The Local Government and Housing Act 1989 regulates the operation of the Housing Revenue Account.     The ‘CIPFA Code of Practice for Treasury Management in the Public Services’, contains Treasury Management indicators and advice on Treasury Management Strategy. Investment Strategy is regulated by ‘MHCLG Guidance on Local Government Investments’ issued initially in 2004 and reissued in 2010 and 2018. This guidance includes statutory guidance.     The aim of the reporting arrangements as detailed above are to ensure that those with ultimate responsibility for the treasury management function are fully aware of the implications of treasury management policies and activities, and that those implementing policies and executing transactions have properly fulfilled their responsibilities with regard to delegation and reporting.  It is the responsibility of members to ensure the Council sets a balanced budget for the forthcoming year. In setting such a budget members and officers of the Council have a legal requirement to ensure it is balanced in a manner which reflects the needs of both current and future taxpayers in discharging these responsibilities. In essence this is a direct reference to ensure that council sets a financially sustainable budget which is mindful of the long-term consequences of any short-term decisions.     Although the calculation of the council tax requirement and the formulation of plans and strategies for control of the Council’s borrowing, investments, capital expenditure and for determining the Council’s minimum reserve position are executive functions, the approval of such plans and strategies is a function reserved to full Council.    The process to be followed to set the budget is therefore that the City Mayor ( with Cabinet) recommends a draft budget to Council for approval. If the majority of Council does not approve the budget it will be referred back to the City Mayor. The City Mayor will consider the comments of Council and then present a further draft budget to Council, which can only be rejected by a two thirds majority of Council.    The financial position must be closely monitored and members must satisfy themselves that sufficient mechanisms are in place to ensure the delivery of savings as well as to ensure that any new expenditure is contained within the available resources.  In approving the budget, members must also have regard to the Public Sector Equality Duty in making their decision. Further information in respect of this duty is set out earlier in this report.    It is important to note that section 106 of the Local Government Finance Act, 1992 places restrictions on Councillors voting if they are in arrears with their Council Tax. Any Councillor who is two months or more in arrears is not allowed to vote on certain issues relating to the Council Tax. These include the setting of the Council Tax itself and determining the Council’s budget. Since every item of expenditure might affect budget decisions, the real effect of the provisions is wide ranging.    If a Member fails to disclose at any Council meeting that he or she is two months or more in arrears, or votes on issues covered by Section 106, then he or she is committing a criminal offence. Prosecution in the Magistrates Court could lead to a fine of up to £1,000 per offence. There are no councillors who fall within this provision and therefore all Councillors are entitled to vote at the relevant meetings in relation to this report. The view of the Monitoring Officer is that the proposed budget meets the legal obligations set out above and ensures that the Council sets a balanced budget.   Financial Advice obtained: As detailed in the report Procurement Advice obtained: The procurement team will continue to work collaboratively with stakeholders, service areas, suppliers and partner organisations to deliver best value, service/budget efficiencies and improved outcomes, ensuring that all revenue budget savings identified are delivered and reported as required.   HR Advice obtained: Not applicable Climate Change Advice obtained: Not applicable   The following documents have been used to assist the decision process: Revenue Budget 2026/27 Contact Officer:  Rachel Rosewell         , Chief Finance Officer                    Telephone number: 07855066602   The appropriate scrutiny to call-in the decision is the Overview and Scrutiny Board Signed: Paul Dennett          Dated: 17th February 2026             City Mayor   For Democratic Services use only   This decision was published on  18.02.26                                            This decision will come in force at 4.00 p.m. on 25.02.26 unless it is called-in in accordance with the Decision Making Process Rules.