URL: https://barnsleymbc.moderngov.co.uk/ieDecisionDetails.aspx?ID=3083

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Purpose: This report approved the council budget for the forthcoming year and updated medium term financial strategy.   Full Council – 26 February 2026

Content: This report approved the council budget for the forthcoming year and updated medium term financial strategy.   Full Council – 26 February 2026 RECOMMENDATION TO FULL COUNCIL ON 26 FEBRUARY 2026   RESOLVED that Cabinet submit to Full Council for approval the following recommendations:-   2026/27 BUDGET RECOMMENDATIONS   1. 2026/27 Revenue Budget, Capital Programme and Council Tax   a) to accept the report of the Director of Finance (S151 Officer), under Section 25 of the Local Government Act 2003 at Section 1, that the 2026/27 budget proposals be agreed and that the Chief Executive and Senior Management Team (SMT), in consultation with Cabinet Spokespersons, develop the requested plans necessary to ensure the Council’s ongoing financial sustainability in 26/27 and beyond.   b) that the revised Medium Term Financial Strategy (MTFS) and Budget Forecast for 26/27 to 28/29 contained at Section 2 (supported by the suite of background papers in Sections 2a – 2d) be noted and that these are monitored as part of the arrangements for the delivery of the MTFS.   c) that provision be made of £23.4M to cover anticipated demographic and other cost pressures in 26/27: • Pay Inflation (£5.7M). • Reduction in Employer’s Pension Contributions (-£6.0M). • Children’s Social Care (Children in Care) (£10.0M). • Adult Social Care (Provider Fees / Practice Improvement) (£4.6M). • Adult Social Care Demography (£5.0M). • Home to School Transport (£2.0M). • Waste & Fleet Services (£0.2M). • Contract inflation, borrowing costs and other investment (£1.9M).   be approved for inclusion in the budget as identified at Section 2.   d) to approve that the following one-off revenue investments made during 25/26 continue for a further year in 26/27:   • Great Childhood Ambition (£2.7M) being: – School Uniform Support Scheme – (£2.5M). – Year 11 Support Kits – (£0.1M). – Base 71 Membership (£0.1M).   • Cost of Living Support (£4.2M) being: – Cost of Living Support (Pensioner and working age LCTS claimants) – (£2.4M). – Support for travel to work (working age LCTS elements) – (£1.8M).   e) to continue to provide 100% business rate relief to eligible retail, leisure and hospitality businesses for a further year (£4.3M TBC).   f) that the increase in Core Government funding (£8.9M in 26/27) be used to partly offset the pressures highlighted above. g) that the funding to be received for other specific grant funding namely; • Children, Families and Youth (£5.2M). • Homelessness, Rough Sleeping and Domestic Abuse (£1.8M). • Crisis and Resilience Fund (£4.7M). • Better Care Fund (TBD). and • Public Health (£22.9M). be used in line with relevant funding conditions up to the maximum awarded.   h) that the forecast budget gap for 26/27 of £6.8M, be met from Strategic Reserves strictly on the basis of this being a temporary bridging strategy to allow for the development of the plan highlighted at point j.   i) Negotiations continue with the Government around possible changes to the final local government finance settlement. It is proposed that any betterment to the provisional settlement be used to reduce the £6.8M of reserves currently required to balance the 26/27 budget together with future years budget gaps.   j) that the forecast accumulated gap of £27.3M over the period to 28/29 be noted.   k) that the proposed 4-point strategy to address this gap (as described in Paper 2) be approved and that the Council’s Chief Executive Officer, Director of Finance and Senior Management Team be instructed to bring forward a savings plan in line with this framework by summer 26.   l) that the Council’s Reserves Strategy and updated reserves position at Section 2b be approved including the use of £6.8M reserves to deliver a balanced position for 26/27 in line with statute.   m) that a separate £20M Minimum Working Balance is retained as a contingency for unforeseen events.   n) that the 26/27 fees and charges policy and accompanying schedule of charges set out at Section 2d be approved.   o) to submit to Council for approval the cash limited budgets for each Service with overall net expenditure for 26/27 of £323M as highlighted in Section 5a.   p) to consider the budgets for all services and approve, for submission into Council, the 26/27 – 28/29 budget proposals presented at Sections 5a – 5c, subject to Cabinet receiving detailed implementation reports where appropriate.   q) to consider and approve the changes to the schools funding formula including the transfer of funding from the schools’ block to the high needs block and approve the proposed 26/27 schools block budget as set out at Section 5d.   r) note the indicative capital programme for 26/27 through to 28/29 of £424M with further detailed reports on individual schemes to be submitted to release this funding where appropriate (Section 6 refers).   s) note that the above includes £2M provisionally set aside for additional investment in repairing the Borough’s highways (principal roads / side streets) and that this will be released subject to receiving further reports on plans for its use.   t) note the above also includes proposed indicative additional Capital Investment of £120M over the planning period which includes progressing: • Health on the High Street Phase 2, • The Seam Phase 2, • Goldthorpe 2040, and • Principal Towns Phase 4.   subject to securing the long-term financial sustainability of the revenue budget and submission of robust business cases.   u) that the Chief Executive and SMT, in consultation with Cabinet Spokespersons, be required to submit reports into Cabinet, as a matter of urgency, in relation to the detailed General Fund Revenue Budget for 26/27 on any further action required to achieve an appropriately balanced budget in addition to those proposals set out above.   v) that the Chief Executive and SMT be responsible for managing their respective budgets including ensuring the implementation of all approved saving proposals.   w) that the Authority's SMT be charged with ensuring that the budget remains in balance and report regularly into Cabinet on budget / savings monitoring including any action required.   x) that Cabinet and the Director of Finance (Section 151 Officer) be authorised to make any necessary technical adjustments to form the 26/27 budget.   y) Note that the appropriate consultation on the budget proposals has taken place with the Trade Unions and representatives of Non-Domestic Ratepayers and that their views of have been considered.   2. Council Tax 2026/27   2.1 That Cabinet note the contents of Section 2a (26/27 Council Tax options) and that:   a) the Council Tax Collection Fund net surplus as at 31st March 2025 relating to BMBC of £2.5M be used to reduce the 26/27 Council Tax requirement, in line with statute. b) the 26/27 Band D Council Tax increase for Barnsley MBC services be set at 3.4%.   c) the Band D Council Tax for Barnsley MBC’s areas be determined following confirmation of the South Yorkshire Police and South Yorkshire Fire Authority precepts for 26/27.   d) the Band D Council Tax for areas of the Borough with Parish / Town Councils be determined following confirmation of individual parish precepts for 26/27.   3. Treasury Management Strategy & Policy Statement 2026/27   3.1 that Cabinet approve the 26/27 Treasury Management Strategy and Policy Statement (included in the main papers at Section 2c) and specifically:   a) approve the 26/27 Treasury Management Policy Statement (Section 2c Appendix A).   b) approve the 26/27 Minimum Revenue Provision (MRP) Statement (Section 2cAppendix B).   c) approve the 26/27 Borrowing Strategy at Section 2c including the full suite of Prudential and Treasury Indicators (Section 2c Appendix C).   d) approve the 26/27 Annual Investment Strategy at Section 2c.

Date of Decision: February 4, 2026