URL: https://democracy.stevenage.gov.uk/ieDecisionDetails.aspx?ID=3723

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Cabinet considered a report in respect of the Council’s General Fund, Council Tax Support Scheme and proposals for the 2026/27 Council Tax for onward recommendation to Council.   The Portfolio Holder advised that the Fair Funding position for Stevenage remained based on the Provisional Local Government Finance Settlement, with the Final Settlement expected to be laid before Parliament imminently. She was pleased to report that the provisional figures were financially favourable for the town.   The proposed Council Tax increase for 2026/27 was 2.99%, equating to 14 pence per week for a Band D property, or 1 pence per week for working?age households in receipt of maximum support through the Council Tax Support Scheme.   The Portfolio Holder also advised that General Fund balances remained above the minimum required level of £3.65 million, leaving the Council in a resilient financial position to move towards Local Government Reorganisation.   The Strategic Director and Chief Financial Officer informed members that the Financial Settlement had been received on 9 February.  She advised that there had been an increase of £83,120 for homelessness, rough sleeping and Domestic Abuse Services which was welcomed.  She reiterated that the Council was in a strong position in terms of financial resilience.   Members welcomed the budget, in particular:   ·         The additional funding available for the environment supporting improvements to waste and recycling; ·         funding to strengthen hardship support for residents; ·         extra support for skills which would improve the life chances for many residents; ·         the increase in Members’ Local Community Budgets and the funding allocated to the 80th Anniversary celebrations.   The Strategic Director and Chief Finance Officer and her team were thanked for the work put in to this year’s budget.   It was RESOLVED:   1.    That the 2025/26 revised net expenditure on the General Fund of £10,585,490 as set out in paragraph 4.8.1 be approved. 2.    That for 2025/26 the sum of £250,000 be transferred to the Capital earmarked reserve to support the Draft Capital Strategy as set out in paragraph 4.2.6 and be included in the revised net expenditure of £10,585,490.   3.    The draft General Fund Budget for 2026/27 of £13,587,330 be proposed, with a contribution to balances of £241 and a Band D Council Tax of £253.78, (assuming a 2.99% Council Tax increase). 4.    The updated position on the General Fund Medium Term Financial Strategy (MTFS) as summarised in section 4.10 be noted. 5.    The minimum level of General Fund reserves of £3,648,355, based on the 2026/27 risk assessment of balances, as shown at Appendix C to this report, be approved.   6.    The contingency sum of £500,000 within which the Cabinet can approve supplementary estimates (in addition to the General Fund net budget), be approved for 2026/27 (reflecting the level of balances available above the minimum amount).  With a further £500,000 approved specifically for additional Local Government Reorganisation transition costs if required.   7.    The 2026/27 Balancing the Budget options as set out in section 4.5 and Appendix A of the report, totalling £84,640 for the General Fund, be included into the Council’s budget setting processes.   8.    That the one-off growth bids of £589,000 as set out in paragraph 4.6.5-4.6.6 and detailed in Appendix G be approved.   9.    That the pressures identified in sections 4.2 and 4.7 to this report be noted.   10. That the 2026/27 Balancing the Budget growth options as set out in section 4.6 and Appendix B, totalling £145,140 (and £95,140 from 2027/28) for the General Fund, be included in the Council’s budget.   11. That the sum set aside of Local Enterprise Board (LEP) loans of £500,000 be approved for 2026/27 and for future years the amounts set out in paragraph 4.2.2 of the report.   12. That for 2026/27 the sum of £1,200,000 be approved to support the Draft Capital Strategy as set out in paragraphs 4.2.5-4.2.7.   13. That for 2026/27 the use of £500,000 Extended Producer Responsibility (EPR) funding for the purchase of two new freighters be approved as set out in paragraph 4.1.14 and also the use of EPR grant funded recycling initiatives of £751,160 be approved as set out in Appendix F and paragraph 4.1.15.   14. That the sums included in the 2026/27 Budget for Local Government Reorganisation (LGR) transition budgets of £560,000 be approved and for future years as set out in paragraph 4.2.4.   15. That the ringfencing of £2,000,000 of Business Rates gain reserves for the repayment of LEP loans as set out in paragraph 4.10.6 be approved.   16. That the Council Tax Support scheme for 2026/27 as set out in paragraphs 4.3.6-4.3.10 be approved.   17. That the Section 25 Statement on Robustness of Estimates and Adequacy of Reserve as set out in Appendix D be approved.   18. That the Equalities Impact Assessment (EQIA) for the 2026/27 General Fund budget be noted, (Appendix E) .   19. That the feedback on the budget from Overview and Scrutiny as set out in Para.4.13.1 and public consultation in section 4.14 be noted.    

Date of Decision: February 11, 2026