The Corporate Policy Development and Scrutiny Panel met on Tuesday 03 February 2026 to discuss the draft budget and council tax for 2026/27, the Corporate Estate Asset Management Framework, and the Heritage Services Business Plan. Key decisions included the approval of a 4.99% council tax increase, which comprises a 2.99% general increase and a 2% adult social care precept, to help balance the budget amidst significant financial pressures. The panel also reviewed the proposed Corporate Estate Asset Management Framework for 2025-2030, aiming to ensure the council's operational estate is safe, fit-for-purpose, and low-carbon, and considered the Heritage Services Business Plan for 2026-2031, which projects a surplus of £13.2 million and outlines strategies for visitor growth and environmental sustainability.

Draft Budget and Council Tax 2026/27 and Financial Outlook

The panel scrutinised the council's proposed revenue and capital budgets and council tax proposals for 2026/27, presented by Councillor Mark Elliott, Cabinet Member for Resources. The report highlighted a challenging financial environment, particularly due to demand pressures in social care and the government's Fair Funding reforms, which are projected to result in a cumulative £12.55 million reduction in funding over three years.

Despite these challenges, a balanced budget for 2026/27 has been proposed, aiming to bridge a £7.24 million funding gap through £2.59 million in income generation and £4.65 million in cost reduction plans. Significant growth pressures are noted in adult services (£5.51 million) and children's services (£4.07 million).

The report proposes a 2.99% increase in general council tax and a 2% adult social care precept, resulting in an overall increase of 4.99% for a Band D property, equating to £90.97 annually or £1.75 per week. This increase is the maximum allowed without a referendum and is assumed in central government calculations for core spending power. The net increase in adult and children's services budgets, after accounting for savings, is nearly £6.4 million.

The panel heard that Bath and North East Somerset Council currently has the third lowest council tax of any unitary authority in the South West, providing excellent value for money. The fair funding formula's assumptions, including a 100% council tax collection rate and an assumed higher council tax charge than is permissible without a referendum, were discussed as inaccuracies that negatively impact the council's core spending power. The council is continuing to challenge the government on these funding calculations.

The capital programme for 2026-2031 totals approximately £510 million, with schemes for full approval totalling just under £230 million and provisional approval totalling over £280 million. Notable schemes include £880,000 for sports grounds and fitness spaces, £360,000 for park play area refurbishment, £1.8 million to explore green hydroelectric power at Pultney Weir, and funding for the Culverhay site preparation for new specialist school provision.

Consultation on the budget proposals ran from December 12th to January 19th. In response to feedback, the proposal to introduce a charge for discovery cards and the proposal to shorten opening times at Weldon and Bath recycling centres have been removed.

Councillor Dina Romero, Chair of the Children, Adults and Health and Wellbeing Policy Development Panel, noted the ongoing pressures on children's services and adult social care, highlighting concerns about the impact of cost-driven changes on people with complex needs. She was gratified by assurances that reviews would remain person-centred and based on eligibility and outcomes. Concerns were also raised about joint working with the Integrated Care Board (ICB) and the need for greater transparency on funding disputes for those with complex needs.

Councillor Andy Waight, Chair of the Climate Emergency and Sustainability Policy Development Panel, described the budget as benign for the current year, but acknowledged potential challenges further along. He welcomed the decision to maintain the opening hours of the recycling centres at Bath and Midsummer Norton, which had been a concern for his panel. Discussions also covered parking enforcement, active travel, park and ride usage, supportive bus services, and the transition to electric refuse vehicles in 2026. Concerns were raised about the impact of parking charges on small businesses, with assurances given that these would be monitored.

Questions were raised about the council tax collection rate, which is currently around 98.5%, and the assumptions within the fair funding formula regarding the number of chargeable houses and the council tax rate. The panel also discussed the capital programme, with a question about the inclusion of social housing and the funding primarily coming from borrowing.

Concerns were raised about the lack of historical financial context in the budget reports, making scrutiny difficult. Officers explained that portfolio cash limit reporting does show year-on-year movements, and invited councillors to engage earlier in the budget preparation process for future years. The methodology behind the £250,000 revenue generation target for yellow box charging was questioned, with officers acknowledging that new powers and estimates involve some uncertainty. Discussions also touched upon the use of Community Infrastructure Levy (CIL) funds for waste centres and cemeteries, and the potential for income streams from heritage services, property, and parking to offset council tax shortfalls.

The relationship with the West of England Combined Authority (WECA) was described as positive, with WECA funding being a major source for council schemes. The Being Our Best programme was highlighted, with 67% of council employees receiving a pay rise above the settlement. A reduced corporate contingency on the revenue side was explained as a reflection of increased confidence in service budget levels, particularly in children's and adult social care. The lateness of the government settlement was cited as a reason for not making more significant savings this year, with a three-year settlement providing time for better planning.

The use of moving traffic enforcement powers was clarified as being for improving traffic flow, not solely for revenue generation. The commercial estate income was noted as being lower than in previous years, with COVID-19 impacts still being felt, although landlords like St John's Foundation have recovered. The need for more detailed reporting on the commercial estate was acknowledged.

The potential for a tourist levy was discussed as a way to mitigate the downsides of being a major tourist destination, with the council's position being that every pound raised in Bath should be spent in Bath, earmarked for public realm improvements. The proposal to cut £10,000 from the top 25 contracts was defended as a reasonable target, supported by a contract management framework and toolkit, and not a salami slicing exercise. The capital programme's delivery record was acknowledged as needing improvement, but structural changes have been made, and the nuance of capital budgets, including contingency, was explained.

Corporate Estate Asset Management Framework 2025-2030

The panel received a presentation on the new Corporate Estate Asset Management Framework for 2025-2030. Paul Roper, Cabinet Member for Economic and Cultural Sustainable Developments, explained that the framework sets the strategic direction for managing the council's operational estate, focusing on safe, fit-for-purpose, low-carbon assets, clear governance, and evidence-based choices. Richard Holden, Head of Corporate Estate, outlined the framework's three-tiered structure: an asset management policy, a strategy, and an action plan.

The framework aims to centralise asset-related decisions, acting as a corporate landlord to provide safe, accessible, and efficient workplaces and public-facing facilities. Key priorities include reducing running costs, supporting decarbonisation, protecting biodiversity, enabling new homes, and improving places. The policy pillars are to plan and manage property as a corporate resource, provide the right property in the right places, manage and maintain property effectively and sustainably, use land and buildings to stimulate economic regeneration, and promote joint working and co-location.

The asset challenge process was highlighted as a mechanism to ensure only necessary assets are retained, with surplus ones repurposed or released. The framework is data and evidence-led, with over 200 inputs. The presentation also covered the council's governance structure for decision-making related to the corporate estate.

Questions were raised about the inclusion of Key Performance Indicators (KPIs) with baseline figures and future ambitions in the performance and governance section. The need for public engagement to ensure valuable assets are not inappropriately disposed of, particularly those used by the third sector, was also raised. The publication timeline for the action plan was sought. Officers confirmed that KPIs are being prepared and that the asset challenge process includes considerations for community asset transfer, with outreach to community groups.

Heritage Services Business Plan 2026-2031

Paul Roper introduced the updated Heritage Services Business Plan for 2026-2031, highlighting its importance in stewarding a wide range of assets, including the Roman Baths, Victoria Art Gallery, Bath Record Office, World Heritage Centre, and the forthcoming Fashion Museum. He noted that Heritage Services operates as an independent business unit, returning a significant surplus to the council, and is one of the world's leading tourist attractions.

Key highlights for the current year included the largest ever surplus of £11.7 million, TripAdvisor's best of the best recognition for the Roman Baths, and £1.4 million in research funding. The Victoria Art Gallery celebrated its 125th anniversary with roof repairs and the opening of a community engagement space. For 2026/27, a projected surplus of £13.2 million is anticipated, with a £1 ticket offer for Universal Credit recipients.

Rob Campbell provided further details on visitor numbers, explaining that the slight dip in Roman Baths visitors is in line with national trends, influenced by the cost of living crisis and a shift towards domestic tourism and free attractions. However, income per visitor remains strong due to entrepreneurial pricing strategies. The retail sector is also experiencing a slight downturn.

The projected visitor numbers for the new Fashion Museum are 250,000 per year, with a breakdown of paying and free visits. The museum's location, improved offer, and potential for cross-selling with the Roman Baths are expected to contribute to this figure. The admission price is planned to be competitive with regional comparators.

Questions were raised about the comparison of Roman Baths visitor numbers to other UK attractions, the revenue generated per visitor, and the methodology behind the Fashion Museum's visitor projections. The universal credit offer for the Roman Baths was discussed, with a suggestion to extend discounted access to those on pension credit. Concerns were also raised about the financial viability of the Fashion Museum project, particularly regarding borrowing costs and the potential for revenue from other heritage services to cover these. The impact of global political and economic instability on international visitor numbers was also noted as a risk.

The business plan outlines a commitment to environmental sustainability, with a three-year action plan focusing on decarbonising operations, improving data accuracy, empowering stakeholders, and leading by example. Specific actions include improving building efficiency, exploring renewable energy generation, and engaging suppliers. The plan also addresses adapting to climate-related risks, such as flooding and overheating, with ongoing research and collaboration.

The meeting concluded with a discussion on the panel's work plan, with suggestions to include items on budget consultation for the following year, the implications of Artificial Intelligence (AI), and an update on the corporate strategy's economic impact on Bath.