Issue - meetings

Report of the Cabinet Member Finance and Assets – TO FOLLOW

RESOLVED THAT:

1.    the interim budget proposals for consultation are approved, including a council tax increase of 2.99% for 2026/27, in line with the Local Government Provisional Finance Settlement;

2.    the growth proposals at Appendix 3 are approved;

3.    the proposed capital programme at Appendix 5 is approved;

4.    the Leadership Team is tasked with developing proposals to balance the 2026/27 budget;

5.    consultation responses will be sought by 31 January 2026.

The Cabinet Member for Finance and Assets apologised for the delay in bringing this item, which he said was due to the late government settlement and necessary adjustments to the funding formula resulting in a huge amount of work for the finance team.  He highlighted the following points:

-       we are witnessing the transfer of the burden of funding local government to local tax payers - in some ways a good thing, but coming with many limitations and less freedom than we would like;

-       the three-year settlement is welcome but a double-edged sword, effectively a real-terms funding cut, in addition to which the potential cost of local government reorganisation - likely to be around £2m – cannot be factored into the budget;

-       all reports, and the Q2 figures, point to £1.171m being required to balance the budget.  A whole host of reviews will be underway in the coming weeks to close the gap, with protection of front-line services and our most vulnerable residents the main priority, as always.  It will be a challenge, but we have faced and overcome similar challenges before.

Members thanked the excellent finance team and Cabinet Member for all their hard work in getting the report ready in such a short time and in such difficult circumstances, and made the following comments:

-       it is disappointing that the government has published these figures so late, and appalling that funding is being cut when costs are going up, placing a greater burden and challenges on local authorities – CBC is a well-run council but others will struggle;

-       the thoughts of residents and partners will be welcome - it is important that they engage with their town and council - to be followed in the new year by discussions on how we can protect and support our mandatory and discretionary services and work;

-       it is noted that CBC is proposing a council tax increase of 2.99%, well below the maximum 5.99% it could charge.  It is frustrating to read online comments which suggest that residents are being charged more and services are being cut, but this is not the case – CBC is not proposing the maximum increase, is not cutting any statutory services, and will hopefully be able to maintain its many discretionary services through this budget.  It will be interesting to see what comes back from the consultation.

The Cabinet Member for Finance and Assets confirmed that the three-year settlement is transferring the cost of local government to councils, with 75% of estimated income coming from local taxation.  The reduction in government funding means that the only way to protect local services is to put up council tax, but CBC’s increase is capped at 2.99% and would require a referendum to raise it any higher.

Members made further comments as follows:

-       these are really challenging times for officers and Cabinet Members, with so many issues to consider, not least the last-minute nature of the settlement which would not be contemplated in  ...  view the full minutes text for item 5