Agenda item

The Committee gave consideration to the Prosperous Communities Committee Draft Budget 2026/2027 and estimates to 2030/2031, presented by the Financial Services Manager (Deputy S151). It was explained that the report outlined the draft budget for 2026/27 for services within the committee and provided estimates for the following four years. These were service controllable budgets only, and did not include central support recharges and capital charges, which made it easier to compare year on year budgets for services. Members were advised that where pressures had been identified, budget holders had sought to identify savings or options to increase income to offset the pressure in the first instance.

Details of significant movements from the 2025/26 base budget to those proposed for 2026/27 were included within the report at Appendix 3, with it summarised that the net base budget for services within the committee had increased by £1.221m. The main reasons for the increase were that the approved use of reserves built into the base budgets had reduced by £139,000, this related to the funding of fixed term posts in 2025/26; an increase in the establishment of 19 posts for the delivery of the food waste service from April had increased staffing costs by £763,000; also in relation to employee costs, a pay award of 3% had been assumed for 2026/27, with 2.5% applied each year after. This increased the salary costs for the committee by £227,000.

It was also explained that the actuarial review of the pension fund was completed in October and set the employer contribution amounts payable for the three year period from 2026/27. The results had been favourable in budgetary terms, which reflected the national position in terms of the local government pension scheme. For the committee this had resulted in a reduction in salary costs of £289,000. Additionally, the fees and charges review reported to the committee in October increased income by £167,000.

In other movements, Members heard that the items listed for Homelessness Grant and expenditure included the Homelessness and Rough Sleeping grant referred to in the previous item in the meeting. It was explained that the grant was previously issued as a stand-alone grant and was budgeted for within the service, however, the grant was now part of the finance settlement from 2026/27, and under accounting rules it was necessary to account for it within the funding section of the budgets rather than in service. There was no impact on the bottom line for the council, the movement simply showed it being removed from service to then be included in the MTFP funding section as a new line.

The Committee was advised that the small budget variations included £39,200 of increases across a number of contracts which had been extended or reviewed, and which were individually below £10,000. There were also inflationary increases applied across all services which totalled £51,600 against utilities, ongoing contracts, subscriptions, and memberships where inflationary increases were included within the agreement.

In conclusion, Members heard that the Council had received the provisional three year finance settlement, with the multi-year settlement providing reassurance around funding levels up to 2028/29. Whilst the final settlement was due in February, Officers were able to report that the proposed budgets for the committee contributed towards a balanced budget for 2026/27. Members are asked to recommend the budget to Corporate Policy & Resources Committee for inclusion in the medium term financial plan.

In response to a question from a Committee Member, it was explained that the assumption of inflationary increases was based on contracted and provider assumptions, with those figures being used.

Members thanked the Officer for her clear presentation, and, having been proposed seconded, and voted upon, it was

RESOLVED that the Prosperous Communities Budget 2026/2027 and revenue estimates to 2030/2031 be RECOMMENDED to the Corporate Policy and Resources Committee for the purpose of budget setting 2026/2027 and for inclusion in the Medium-Term Financial Plan 2026/2027 to 2030/2031 (as amended by any decisions taken on this agenda).