The Resources and Performance Cabinet Panel met on Wednesday, 28 January 2026, to discuss the council's draft budget for 2026/27 and its medium-term financial strategy. The panel also reviewed the Q3 finance budget monitor, which showed a small projected overspend of £1.4 million against a total revenue budget of £1.2 billion, an improvement from the previous quarter. Decisions were made regarding the disposal of council land holdings at Ickleford and the former Hexton JMI School, and a revised approach was agreed for the future of Heath Barn in Hemel Hempstead.

Budget 2026/27 and Medium-Term Financial Strategy (Resources and Performance)

The council presented its draft budget for 2026/27, outlining significant financial pressures including a £42 million annual reduction in government funding over the next three years. Despite these challenges, the council plans to invest an additional £108 million in key services such as children's services, SEND support, and adult social care. The budget also includes a £1.3 billion capital programme over four years for infrastructure improvements. To balance the budget, the council proposes efficiency savings, service transformation, and a council tax increase of 2.99% plus a 2% Adult Social Care precept. The Resources and Performance portfolio's budget for 2026/27 is £102.2 million for the department, £57.2 million for Capital Financing, and a net £90.1 million for Central Items. Significant savings are planned across departments, including £4.3 million within Resources, and a £55 million savings target for 2026/27 across the council. The capital programme for Resources & Performance in 2026/27 totals £52.9 million, with notable investments in Local Government Reform and Transformation Projects.

Finance Budget Monitor – Quarter 3 2025/26

The Q3 finance budget monitor indicated a forecasted small overspend of £1.4 million on a total revenue budget of £1.2 billion, representing a £4.8 million improvement from the previous quarter. This forecast did not include any drawdown from the £10 million contingency fund. The report highlighted ongoing demand pressures, particularly in social care and SEND services, contributing to rising costs. The Schools' High Needs funding block faces significant pressure, with an expected in-year deficit of £11 million, leading to a cumulative deficit of £89 million by the end of the financial year. The capital programme is forecasting a £16 million underspend for 2025/26, with a request to reprogram £2.8 million into later years. The council's debt position stands at £99 million, though aged debt has reduced over the last quarter.

Future of Land Holdings at Ickleford

The panel recommended that the land held by the council at Ickleford, allocated for 150 homes in the North Hertfordshire Local Plan, be declared surplus to requirements and made available for disposal. A portion of the land has been excluded from the proposed disposal to safeguard it for a potential primary school, should it be required due to future housing growth. Concerns were raised by local representatives regarding inadequate sewage systems and highway congestion in Ickleford, and the need for a new primary school. Officers assured the panel that these issues would be considered during the statutory planning process, and that the disposal could provide an opportunity for developers to contribute towards infrastructure improvements.

Future of the Former Hexton JMI School

The panel recommended that the former Hexton JMI School site, which closed in August 2024 due to low pupil numbers, be declared surplus to requirements and made available for disposal. Officers had reviewed the site and found no viable alternative uses for it within council services, citing its location in a small village away from main population centres. Local residents and councillors supported the disposal, with suggestions for the site to be redeveloped for affordable homes. The disposal will require the approval of the Secretary of State for Education.

Future of Heath Barn, Hemel Hempstead

A revised approach was agreed for the future of Heath Barn, a Grade II listed property in Hemel Hempstead formerly used as a music centre. The panel recommended that the property be declared surplus and available for disposal, with a three-month exclusive window for the community interest group Our Heath Barn to submit a viable bid. This period will run in parallel with the open marketing of the site. The council will work collaboratively with the community group to support their bid, while also obtaining market feedback to ensure best consideration is achieved. The final decision on the disposal terms will be delegated to officers in consultation with the Executive Member for Resources and Performance, and the outcome will be brought back to a future panel meeting. Concerns were raised about the potential for developers to prioritise profit over heritage value, and the need for the community group to secure external funding.