Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: March 4, 2026

Purpose:

Content: Councillor Liz Leyshon proposed the recommendations, which were seconded by Councillor Bill Revans.   Having been duly proposed and seconded, the Council Resolved to:- ·       NOTE, that the Executive had been asked 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 and associated risks; and that authority be 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 (highlighted in red) of the Scrutiny Committee Corporate and Resources in relation to the scrutiny of the Budget Proposals 2026/27, as set out in Appendix W, together with the Executive's response to those (Appendix X), when finalising the Budget Proposals 2026/27.   Having been duly proposed and seconded, the Council Resolved to note and approve:-   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 EFS 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.         The Savings 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.         Fee and Charges Policy in Appendix J(i) and changes to the Fees and Charges schedule for 2026/27 set out in Appendix J(ii).                      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 Appendix Z   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)   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 NOTE f)      The Schools Block Funding as outlined in the report from paragraph 146 to 152 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 in Appendices O(iii)) and O(iv). l)      The Capital Investment Strategy for 2026/27 set out in Appendix P. m)  £303.199 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). x)    The Council Tax resolution as shown in Appendix Y, in accordance with y)    Sections 30 and 36 of the Local Government Finance Act 1992, which set out the aggregate amounts of Council Tax for 2026/27 for each part of its area and for each of the categories of dwellings, incorporating: ·       The precepting bodies precepts as below:     2025/26 £ 2026/27 £ Increase % Somerset Council 1,593.67 1,649.21   Somerset Council – Social Care 263.94 301.09   Somerset Council Total 1,857.61 1,950.30 4.99 Police and Crime Commissioner 293.20 308.20 5.12 Devon and Somerset Fire Authority 104.68 109.68 4.78 Sub-Total 2,255.49 2,368.18 5.00 Special Expenses Average 0.71 0.59 (16.90) City, Town and Parish Council (average) 182.42 191.82 5.15 Total 2,438.62 2,560.59 5.00           ·       The Council Tax Base for the year 2026/27, calculated in accordance with the provisions of the Local Authorities (Calculation of Council Tax Base) (England) Regulations 1992 as amended and made under Section 33 (5) of the Local Government Finance Act 1992, (referred to hereinafter as “the Act”).         Legislation Plain English 1 a 217,767.42 The Council Tax Base 2025/26 for the whole Council area [Item T in the formula in Section 31B (3) of the Local Government Finance Act 1992, as amended (the "Act")] and, for dwellings in those parts of its area to which a Parish precept related as in Appendix Y(iii). The Tax Base for the whole District and the Tax Base for each City/Town/Parish.   ·       The Council Tax requirement for the Council’s own purposes for 2026/27 (excluding Parish precepts and Special Expenses):       £ Council Tax Requirement 2 a 421,521,506 (excluding Parish Precepts and Special Expenses)     3,190,293 with an additional requirement for the Somerset Rivers Authority   ·       The following amounts calculated for 2026/27 in accordance with Sections 31B and 34 to 36 of the Act (as amended by the Localism Act 2011 and Local Government Regulations 2012).       £ Legislation Plain English 3 a 1,542,781,135 being the aggregate of the amounts which the Council estimated for the items set out in Section 31A (2) of the Act, taking into account all precepts issued to it by Parish Councils. The estimated gross revenue expenditure (including transfers to reserves and deficits on the collection fund) for the General Fund, Special Expenses account, other General Fund revenue reserves and Parish/City/Town precepts     b (1,076,169,693) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the Act The estimated gross revenue income (including the transfer of the surplus on the Collection Fund, formula grant and transfers from reserves) for the same funds as mentioned above.       c 466,611,442 Being the amount by which the aggregate expenditure at 3(a) above exceeded the aggregate income at 3(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 31B of the Act.]   The net (expenditure less income) funding requirement for the General Fund and Special Expenses accounts plus the Parish precepts issued for the year.     d 2,142.71 Being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B (1) of the Act, as the basic amount of it’s Council Tax for the year. The average Band D Council Tax across Somerset inclusive of parish precepts and Special expenses. It was not actually charged anywhere in Somerset but must be calculated by law as part of the Council Tax setting process.     e 41,899,643 Being the aggregate amount of all special items referred to in Section 34(1) of the Act. The total of Parish precepts received for the year and the net Special expenses.     f 1,950.30 Being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (2 above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special items related. This was the Band D Council Tax for Somerset Council (including the Somerset Rivers Authority) only.     ·       Noting that the Police Authority and the Fire Authority had issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in Appendix Y.