URL: https://democracy.plymouth.gov.uk/ieDecisionDetails.aspx?ID=4696

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Purpose of Report   Under the Council’s Constitution, the Council is required to set a balanced Revenue and Capital Budget and set the Council Tax for each financial year. This report:   ·         Provided the context for budget setting, both in terms of the Council’s strategic objectives for the city and the local government landscape nationally ·         Sets out the Service Director for Finance’s (Section 151 Officer) budget robustness statement as required by law ·         Summarised financial risks and associated mitigations ·         Sets out revenue budget planning assumptions in respect of income, approved savings plans, resource requirements ·         Sets out the Capital budget, Capital Financing Strategy and the Treasury Management Strategy for 2026/27 ·         Sets out the Medium-Term Financial Plan for the period 2026/27 – 2030/31 ·         Sets out indicative Council Tax levels for 2026/27, prior to approval of Fire Precept ·         Sets out proposed Fees and Charges for 2026/27 for Cabinet Approval ·         Set outs the Tamar Bridge & Torpoint Ferry Joint Committee 2026/27 Revenue Budget and Capital Programme and the 2026/27 draft Business Plan ·         Sets out Cabinet Savings Proposals for approval   Decision   Cabinet agreed to:   1. Note the Financial Risks as set out in Appendix 3. 2. Note the section from the Council’s Section 151 Officer (Chief Finance Officer) on the robustness of the budget estimates and the adequacy of the level of reserves. 3. Note that the Fire Precept will not be confirmed until after the Cabinet meeting and delegate to the Section 151 Officer to make final amendments to Council Tax Resolution prior to Full Council. 4. Recommends the following to Full Council, subject to amendments by the Section 151 Officer in consultation with the Leader reflecting any final technical adjustments and changes upon receipt of the Final Local Government Finance Settlement. i) The Revenue Budget 2026/27:  £329.275m ii) The drawdown of a maximum of £3.618m of flexible capital receipts, as set out in the report iii) The Capital Budget 2026/27 £113.938m and five-year programme £319.725m iv) The Capital Financing Strategy 2026/27 v) The Treasury Management Strategy 2026/27 (incorporating the Non-Treasury Management Strategy and the Minimum Revenue Provision Statement) vi) The Medium-Term Financial Plan for the period 2026/27 to 2030/31 vii) The Tamar Bridge & Torpoint Ferry Joint Committee 2026/27 Revenue Budget and Capital Programme and the 2026/27 draft Business Plan, as referenced in Appendix 16, and the longer-term forecast to 2029/30 is noted. 5. Approve the partial reversal of up to £31m of the council’s Interest Rate Swap to provide a net£9.7m one-off benefit to the council’s revenue budget position in 2026/27, noting the overall financial impact and alternative options set out in Section 20 of the report.   6. Approve Fees and Charges Setting 2026/27 (Appendix 15) 7. Approve the Cabinet Savings Proposals 2026/27 (Appendix 5)   Reason:   Setting a balanced budget is a statutory requirement. The obligation to make a lawful budget each year is shared equally by each individual Member, discharged through Council. Options for achieving a balanced budget have been considered in the preparation of the proposed budget set out in this report. Using part of the value created through the council’s beneficial Rate Swap arrangement will enable the council to set a budget in2026/27, whilst driving forward its transformation plans to achieve a more sustainable financial position in2027/28 and beyond.   Alternative options considered and rejected   1) Not to bring forward proposals in respect of the 2026/27 Budget – rejected on the basis that there isa legal requirement for the Council to agree a balanced budget, and seeking support for further development of the recommended proposals will enable this to happen.   2) Funding demand pressures at a lower level or increasing savings – despite extensive work to reduce and contain demand, independent review of forecasts for key pressure areas (SEND, Adults and Children’s Social Care, and Homelessness), and the development of £17.2m in recommended savings with further transformation savings planned for later years, the S151 Officer cannot recommend this option because it would fail to deliver a robust, balanced budget position.   3) Exceptional Financial Support via Capitalisation Direction or Council Tax referendum limits –rejected because a capitalisation direction is anticipated to create higher financing costs than current proposals, while raising Council Tax to the average rate would still fail to close the budget gap and would place an additional burden on residents.

Date of Decision: February 9, 2026