Issue - meetings

(A report by Russell Stone, Director of Finance (S151 Officer))

Please note that in accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote will be taken on Budget recommendations.

(Members are reminded that if they are two months or more in arrears, they must disclose the fact and not vote on any item to set tax or any decision which may affect its calculation).

(A report by Russell Stone, Director of Finance (S151 Officer))

The Portfolio Holder for Finance and Economic Growthpresented the Annual Budget Report 2026/27, together with the Medium Term Financial Strategy, Capital Programme, Capital Strategy, Treasury Management Policy/Strategy, and the Annual Delivery Plan, as set out in the published agenda. The Director of Finance (S151 Officer) and the Head of Finance Delivery – BBC (PSPSL) were in attendance to support, and the Interim Finance Consultant was in attendance virtually.

The Portfolio Holder outlined the national and local financial context within which the proposals had been developed, referring to the late confirmation of the Local Government Finance Settlement, the implications of the Government’s Fair Funding Review, and ongoing pressures including inflation, increased service demand and the impact of the Internal Drainage Board levy.

Members were advised that the budget had been through all relevant committees, with every Member given the opportunity to ask questions during the scrutiny process. It was noted that despite significant challenges, the proposed budget for 2026/27 presented a balanced position without requiring in?year efficiency savings.

The Leader recorded his thanks to the Finance Team for their extensive work in bringing forward the budget and highlighted the importance of understanding how Council Tax income was apportioned, particularly in light of the pressures created by the IDB levy. It was noted that the proposals had been examined thoroughly, ensuring that all Members had ample opportunity to ask questions and scrutinise the detail.

Members discussed the ongoing impact of the Internal Drainage Board (IDB) levy, confirming that it continued to place significant pressure on the Council’s finances. Reference was made to how little of every £10 of Council Tax income was retained by the Borough Council once statutory precepts were applied, demonstrating the scale of the issue.

Although the report contained a substantial amount of financial information, Members considered the key message to be that the Council had managed its resources responsibly, despite the negative effects of national funding arrangements, some of which had not fully met local needs. It was observed that the authority remained in a stronger financial position than many councils within the county, with others facing considerably larger budget gaps.

Appreciation was expressed for the commitment and hard work of staff throughout what had been a challenging period, particularly with Local Government Reorganisation (LGR) underway. Members noted that the authority was on course to leave the organisation in a healthy financial position, and recorded their admiration for the professionalism shown across the organisation. Thanks were extended to the wider team for achieving a balanced position under difficult circumstances, and it was emphasised that, as LGR progressed, the priority for any future authority would need to remain the residents of Boston, with strong financial discipline essential to ensuring the borough was transferred in a stable and responsible condition.

Members welcomed the fact that the Council had not needed to seek Government permission to raise Council Tax above the 3% limit, viewing this as further evidence of prudent financial management.

The meeting recognised that this had been  ...  view the full minutes text for item 60