This meeting sees the launch of the council's budget consultation for the 2025/26 financial year. It also sees discussions of a number of proposals that relate to the council's significant financial challenges, including proposed changes to council tax and a number of potential reductions to services. There will also be discussions of proposed new ways of working with parish councils, and an update on the council's progress towards Net Zero by 2030.

Budget Consultation 2025/26

The report pack contains a draft of the budget consultation that the council will launch during the meeting.

The document sets out the council's proposed budget for 2025/26, alongside the stark financial challenges it is currently facing.

These are unprecedented times for local government and the context in which we are operating is becoming increasingly more challenging. That is not just the case in Peterborough, but for most councils in the UK.

- Budget Consultation 2025-6 Launch

In particular, the report pack notes an increase in demand for Adult Social Care services, a rise in the number of homeless people presenting to the council, and pressures caused by a number of recent high-profile job losses in the city.

The document sets out a number of proposals for how the council will make the necessary changes to balance its budget. In particular it highlights:

• Proposed changes to leisure, heritage and library services, including the potential closure of the Lido, a reduction in opening hours for Peterborough Museum and Art Gallery and a proposed reduction in the number of libraries in the city.
• Proposed changes to City College Peterborough which would see the college brought back under direct council control.
• A proposal to increase council tax by 4.99%, alongside a proposal to consider increasing council tax beyond the 4.99% referendum limit.
• A range of proposed increases to fees and charges across a number of services.
• A number of proposed savings in relation to the contract with Aragon Direct Services, including the potential cessation of the annual Spring Clean.
• A range of proposed staff and management reductions across the council.

The draft document also outlines the proposed consultation process, which will consist of an online form, social media posts, and briefings with stakeholders.

Opportunity Peterborough Limited

This item proposes the winding up of Opportunity Peterborough Limited.

Opportunity Peterborough Limited was established as an Urban Regeneration Company in 2005 and in 2011 became the city's economic development company.

Its mission has been to support inclusive and sustainable economic growth across the Greater Peterborough area, improving prosperity, job opportunities, and life chances for those who live and work here whilst ensuring that growth embraces smart innovation, contributes to Peterborough’s Net Zero Carbon target, and helps to build a resilient economy and city of the future.

- Opportunity Peterborough

The report pack notes that in 2023 the company's staff were integrated into the council's Economic Growth and Development team.

It also notes that winding up the company will save the council c.£10,000 p.a.

Nenegate School Extension

This item seeks approval to extend Nenegate School, Peterborough's only specialist setting for children and young people with social, emotional and mental health (SEMH) needs.

The report pack notes that there are currently 24 children in Peterborough who need a specialist SEMH placement and that they cannot currently be provided with one.

As a result of the capacity issues and to comply with statutory obligations to place children in an appropriate setting, children are being placed in ‘out of county’ independent settings.

- Nenegate School Extension

Because these children cannot be placed locally they are being placed in out of county independent settings at an annual cost to the council of over £1.5 million. The proposed expansion would increase the school's capacity by 40 places.

The report pack proposes two options for delivering the project:

• The council funds and leads the extension.
• The council funds the extension and the school leads on delivering it.

The recommendation in the report pack is to allow the school to lead on delivering the project, but for the council to monitor it closely.

Disposal of Goods Shed on Fletton Quays

This item proposes the disposal of the Goods Shed building on Fletton Quays, to a subsidiary of Farholt Limited.

The building is intended to form part of the council's plans to deliver The Vine, a cultural hub in the city centre, which is being funded through the Towns Fund.

The report pack proposes that the council dispose of the building for £250,000 plus VAT, and that it also provides the purchaser with grant funding of £1,895,000 to support the redevelopment of the site.

The grant funding remedies a market failure by gap funding part of the redevelopment cost to make the development viable. A market failure is the gap between the market value and the cost of the development. It would enable the council to deliver its Towns Fund objectives including seeing a building regenerated with a long-term use to support the local economy and people living within.

- Disposal of Goods Shed on Fletton Quays

The report pack notes that the site will be used to deliver a food hall and incubator space for local businesses.

Key Theatre Programmed Works

This item seeks approval to carry out a number of planned works at the Key Theatre.

The report pack proposes that the council replaces the roof of the theatre, and that it also carries out additional work to replace its life-expired heating, cooling, and ventilation systems.

Through the investigations it has identified all systems are life expired.

The replacement of these systems and the subsequent requirement to meet today’s compliant standards will alter the current design, size and location of the systems and the associated equipment. Therefore, these works should be considered as part of the planned RAAC replacement project to ensure that the structural engineering and design requirements in these alterations at an early stage are factored in.

- Key Theatre Programmed Works

The report pack notes that these works were not included in the original plans to replace the roof, but that it would be far more cost-effective to carry them out at the same time as the roof replacement.

Approval of the Parish Charter

This item proposes the formal approval of the Parish Charter.

The Parish Charter is a document that sets out how the council will work with the 26 parish councils in Peterborough.

Parish Councils form an important function within many communities within Peterborough and act as the first tier of local government. Peterborough has 26 parished areas, many of which are rural and have unique qualities and issues which may be not represented across the wider greater Peterborough area.

- Parish Charter Cabinet Report

It contains a number of key principles that will govern the relationship between the council and the parishes, including acknowledging the role of both organisations, recognising their importance to their communities, and committing to working together to promote the social, economic and environmental wellbeing of those communities.

The document also outlines how the two sectors will communicate, consult and engage on key issues.

Roadmap to Net Zero

This item seeks the endorsement of the Roadmap to Net Zero document, with a recommendation that it is then adopted by the full council.

The Roadmap to Net Zero sets out the steps that the council will take to meet its pledge to become a Net Zero carbon organisation by 2030.

In 2019, Peterborough City Council declared a climate emergency, committing to become a net zero carbon organisation by 2030 and to supporting the Peterborough to become a net zero city.

- Roadmap to Net Zero

The document includes a number of proposed actions that will help to reduce the council's carbon footprint, including:

• A plan to switch compatible vehicles in the council fleet to HVO fuel.
• A proposal to develop a strategy to decarbonise the heating in council buildings, building on recently completed heat decarbonisation plans for the council's most carbon intensive buildings.
• A proposal to implement a Climate Change Commercial Ask, which will require suppliers to demonstrate that they are taking steps to reduce their own carbon emissions.
• A continued commitment to increasing the tree canopy in the city.

The report pack notes that the council has already made significant progress towards Net Zero, and that it has already reduced its emissions by 28.6% since 2018. The Roadmap to Net Zero seeks to provide a coherent plan for reaching the council's target of net zero by 2030.

Council Tax Base 2025/26 and Collection Fund Declaration 2024/5

The report pack for this item contains the council's proposed tax base for 2025/26, calculated as 63,069.59 Band D equivalent properties. This is 3% more than the 2024/25 tax base.

The document also contains estimated positions on the council's collection fund for 2024/25. This is the amount of money that the council has collected in council tax and business rates. The estimated position on the collection fund for council tax is a deficit of £0.548 million, while the estimated position for business rates is a deficit of £12.833 million.

Contract Award Approval – Care and Support to the Extra Care Housing Schemes at St Edmunds Court and Bishopfield Court

This item seeks approval to award a contract to Atlas Care Services Ltd to provide care and support at the extra care housing schemes at St Edmunds Court and Bishopfield Court.

The contract would be for a period of two years and one month, with the option to extend for up to a further two years. The total value of the contract is £5,250,000.