URL: https://democracy.rochdale.gov.uk/ieDecisionDetails.aspx?ID=2782

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To provide a budget update and timetable for the 2026/27-2028/29 budget

Content: The Cabinet considered a report of the Director of Corporate Services, which sought to inform of the budget guidelines and timetable to be used in preparing the detailed 2026/27 budget and provisional budgets for 2027/28 and 2028/29.   The Portfolio Holder for Finance and Growth delivered a brief summary of the report’s key points.   The Deputy Chief Finance Officer was in attendance to present the information and to address the questions and the comments of the Cabinet Members.   The Senior Officer continued updating on the Local Government Funding Reforms due to be implemented from 2026/27, and the consultations associated with the reforms. The reforms would simplify the funding landscape and provide multi-year settlements giving Local Authorities greater certainty over funding. They would update how funding would be allocated to make it fairer, which included Council Tax Equalisation and a Business Rates Reset.   Resolved: 1.    That the proposed budget timetable detailed at Appendix 1 of the report be approved; 2.    That the revenue assumptions, detailed in Appendix 2 of the report, to be incorporated into the budget setting process, noting the budget assumes an increase in Council Tax of 4.99% be approved; 3.    That the revenue budget principles in Appendix 3 of the report be approved; 4.    That the capital budget principles in Appendix 4 of the report be approved; 5.    That the Local Government Funding Reforms and consultations outlined in section 5.3 of the report be noted.   Reason for decision: Under the Budget & Policy Framework, Cabinet is required to approve the proposed guidelines and timetable for setting the 2026/27 Budget and Provisional Budgets for 2027/28 and 2028/29 by September.   Alternatives considered and rejected: The Council is legally obliged to set a balanced budget. The budget setting process is complex and must be undertaken in a planned way. It is equally important that assumptions used in the preparation of the budget are agreed, reasonable and consistently applied by all services.   An alternative would be to wait and provide the budget update once the Local Government Funding Reform consultations conclude, and the individual Local Authority funding allocations are known. However, the allocations would not be known until the Autumn Statement and Provisional Finance Settlements were announced in November/December 2025, and it is important to keep members updated on the budget process throughout the year.

Date of Decision: July 29, 2025