Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 25, 2026

Purpose:

Content: Having been duly proposed and seconded, the Executive considered and agreed to:   Approve the establishment of a cross-party Deficit Management Plan (DMP) Standing Panel to provide Member oversight of the DSG SEND Reform Plan and DMP Plan and associated risks; and that authority was delegated to the Executive Lead Member to determine the membership, terms of reference and commencement arrangements for the Board.   Consider the key findings and the specific recommendations of the Scrutiny Committee Corporate and Resources in relation to the scrutiny of the Budget Proposals 2026/27, as set out in Appendix W and Appendix 1 of that report, when finalising its Budget Proposals 2026/27 that would be recommended to Full Council on 4 March 2026.   Having been duly proposed and seconded, the Executive considered, agreed and recommended to Full Council:   In respect of the Robustness of the Budget   a)    NOTE the conclusions of the Council’s Interim Chief Finance Officer (Section 151 Officer) in his Section 25 report confirming the robustness of the Budget estimates and the adequacy of reserves for 2026/27 and his warnings about the need to get further grip on forecast deficits, accelerate the Council’s Transformation Programme and to re-commit to achieving Financial Sustainability from 2027/28 without recourse to ERP or reserves.   In respect of the General Fund Revenue Budget 2026/27   b)    APPROVE the General Fund Net Revenue Budget for 2026/27 of £717.521m including the appendices set out in (i) to (vii) below:                         i.         The individual Executive and Service Directorate Budgets for 2026/27 as outlined in Appendix A                        ii.         MTFP Movements set out in Appendix E since the report that was presented to Executive in December 2025.                       iii.         The Specific Revenue Grants Schedule 2026/27 set out in Appendix F                      iv.         TheSavings and income generation plans in Appendices H(i) and H(ii), including the MTFP Equality 2026/27 Equality Due Regard Consideration in Appendix L                        v.         Changes to the Fees and Charges schedule for 2026/27 set out in Appendix J.                      vi.         Additional funding for new spending requirements arising from pressures/growth as set out in Appendix M.                     vii.         The ‘minded to’ offer from MHCLG in relation to £30.000m of Exceptional Financial Support and the conditions attached to the offer as set out in the letter from the Minister.   c)    To NOTE                         i.         That the level of General Reserves was maintained within the risk-based assessment range of £37.126m minimum to £74.252m appropriate level.                       ii.         The MTFS 2026/27 – 2030/31 Strategy Document set out in Appendix D and the MTFP for the next five years set out in Appendix B                      iii.         The 2026/27 Budget Consultation Feedback (Appendix V)                      iv.         That further minor changes would need to be made to a number of appendices presented to Full Council reflecting the late clarification of certain details and Government’s announcements regarding Exceptional Financial Support.   In respect of the Dedicated Schools Grant (DSG) NOTE   d)    The overall Dedicated Schools Grant allocation of £626.996m for 2026/27 and breakdown by block set out in Appendix U(ii). e)    That spending on the Dedicated Schools Grant, set out in Appendix U(i)was forecast to exceed the funding provided by government by £45.783m in 2025/26 and was projected to reach a cumulative deficit of £107.775m by 31 March 2026 (£116.800m for the High Need block within the overall DSG).   In respect of the Schools Block Funding APPROVE   f)      The Schools Block Funding as outlined in the report from paragraph 144 to 150 onwards and Appendix U(ii) to the report; and   g)    Agree to delegate authority to the S151 Officer to approve the Schools Block funding in future years in consultation with the Executive Lead Members responsible for Finance and Children's Services.   In respect of the Earmarked Reserves to NOTE   h)    The Earmarked Reserves reprofiling as set out in Appendix N.   i)      The overall estimated position of Earmarked Reserves outlined in Table 16 and the proposed use of reserves detailed in Appendix N which included the estimated use of Earmarked Reserves during the year.   j)      Approve the contribution to reserves of £7.000m for the DSG Deficit (HNB) reserve and £2.000m for the Hardship Fund.   In respect of the General Fund Capital Programme to APPROVE   k)    The revised Capital Programme of £860.500m 2025/26 to 2030/31, as set out inAppendices O(iii)) and O(iv).   l)      The Capital Investment Strategy for 2026/27 set out inAppendix P.   m)  £303.199m new General Fund Capital proposals 2026/27 to 2030/31 set out in Appendix O(i)and   n)    Transformation expenditure of up to £9.500m and DELEGATE authority to the Executive Director of Resources, Strategy and Transformation, in consultation with the Section 151 Officer and the Lead Member for Transformation, Human Resources and Localities, to finalise and enter into the deliverable orders with Newton Consulting for the development of the business cases, as set out in Appendix K.   In respect of the Treasury Management Strategy and Prudential Indicators 2026/27, to APPROVE   o)    The Treasury Management Strategy 2026/27 set out in Appendix Q.   p)    The Minimum Revenue Provision Policy (MRP) Statement 2026/27 set out in Appendix R.   q)    The Flexible Use of Receipt Strategy 2026/27 set out in Appendix S.   r)     The Non-Treasury Investment Strategy 2026/27 set out in Appendix T.   In respect of Council Tax to APPROVE   s)    The calculations for determining the Council Tax requirement for the year 2026/27 in accordance with the Local Government Finance Act 1992, which would be set out in the Council Tax Resolution included in the papers for Full Council.   t)      The Council Tax precept of £14.65, included in the overall band D Council Tax for the shadow Somerset Rivers Authority (representing no increase for 2026/27). This resulted in a Council Tax Requirement of £3,190,293 for the Somerset Rivers Authority.   u)    The increase in Council Tax for a band D property for Somerset Council, including the Somerset Rivers Authority Precept, by 4.99% or £92.69 per annum for 2026/27, giving a Band D Council Tax of £1,950.30 per year, being:   a.    The General Band D Council Tax by 2.99% or £55.54 per annum, being the maximum permitted without a referendum; and   b.    The Adult Social Care Precept by 2.00% or £37.15 per annum.   v)    Special Expenses of £129,145 relating mainly to closed church yards in the former Mendip and South Somerset area.   w)   The precept requirement for Somerset Council of £424,840,944 (including Special Expenses Rate) £424,711,799 (excluding Special Expenses Rates).