Agenda item

(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).

The Leader of the Council, Councillor Dale Broughton, introduced the report and presented the Council with the full suite of financial documents for 2026/27, comprising the General Fund Revenue Budget, Medium Term Financial Strategy (Appendices 1, 1A and 1B within the report), Capital Programme and Capital Strategy (Appendices 2 and 3 within the report), Treasury Management Policy and Strategy (Appendices 4A - 4C within the report), Fees and Charges 2026/27 (Appendix 5 within the report), the Annual Delivery Plan (Appendix 6 within the report), and the Pay Policy Report and Statement (Appendices 8A and 8B within the report).

During his introduction, Councillor Broughton reached the five?minute limit for speeches. In accordance with the Constitution, the Mayor called for a vote on whether he should be permitted to continue. Following the vote, Council resolved that the Leader be allowed to continue his introduction, after which he proceeded to outline the key features of the budget:

·         The 2026/27 budget was balanced with no in?year efficiency target, supported by strong financial management and savings achieved through the Partnership, which had delivered over £42 million in efficiencies.

·         Significant national funding changes—including the Fair Funding Review, dissolution of the Business Rates Pool, and consolidation of grants—were fully reflected in the MTFS (Appendices 1, 1A, 1B).

·         Internal Drainage Board (IDB) levies remained a major financial pressure, rising to £3.072m, a 52.57% increase since 2021/22, now equating to 64.5% of the borough Council Tax retained locally.

·         A 3.5% increase in Council Tax, which was within the government’s referendum limit, setting the Band D charge at £231.48, with most households in Bands A–C experiencing weekly increases of 10–13 pence. (MTFS Tables – Appendix 1).

·         The Capital Programme (Appendices 2–3) set out investment in leisure improvements, Rosegarth Square, the Boston Depot extension, Pride in Place schemes, and infrastructure for mandatory food?waste collections.

·         The Treasury Management Policy and Strategy (Appendices 4A–4C) confirmed a prudent, risk?averse approach to borrowing and investment, aligned with the capital programme and compliant with national codes.

·         The Annual Delivery Plan (Appendix 6) detailed key priorities for 2026/27 including town centre, environmental and strategic planning work.

·         The Pay Policy Statement and Real Living Wage Supplement (Appendices 8A–8B) ensured the lowest Council pay rate would increase to £13.45 per hour from 1 April 2026.

Members commented on the long?standing pressures created by Internal Drainage Board (IDB) levies, noting that the rising costs continued to place a disproportionate strain on the Council’s finances and remained a source of considerable frustration. Reference was made to the difficulty of managing a budget where IDB increases absorbed such a significant share of the Council Tax retained locally.

Frustration was also expressed regarding the Government’s approach to funding, with comments highlighting that national decisions had failed to recognise or adequately respond to the financial realities faced by district councils such as Boston. Members additionally voiced dissatisfaction with Lincolnshire County Council, drawing attention to ongoing concerns about the condition of local highways as an example of pressures passed down to the borough.

Several Members remarked on the positive work of officers over many years, acknowledging the professionalism and dedication shown in maintaining financial stability, delivering services, and ensuring the borough remained well?managed despite increasing external pressures. Particular thanks were offered to the finance team for their support during the budget process, and to the Portfolio Holder for Finance and Economic Growth for his work throughout the year.

Brief references were made to the financial challenges set out within the report, including reductions in certain income streams and wider economic uncertainty, with recognition that the achievement of a balanced budget with no in?year efficiency target represented a significant accomplishment in the circumstances.

Members also touched upon the wider context of Local Government Reorganisation, noting that future structural changes could alter the way budgets were set and delivered, and emphasising the importance of protecting the interests of Boston residents during this period of transition.

The recommendations were moved by Councillor Dale Broughton and seconded by Councillor Mike Gilbert.

Resolved:

1.    That The Medium-Term Financial Strategy (as outlined in Appendix 1 within the report) be approved;

2.    That it be noted that the Council Tax Base for Boston Borough Council (BBC) of 20,572 and 9,455 for Boston Special Expenses (Band D equivalent) had been set for 2026/27 and on 23^rd December 2025 by the Director of Finance & Section 151 Officer, under officer delegation in line with the Constitution;

3.    That the Revenue Estimates for the General Fund and Boston Special Expenses for 2026/27 (as outlined in Appendices 1, 1A and 1B within the report) be approved;

4.    That the additions to and use of reserves (as detailed in Appendix 1 within the report) be approved;

5.    That the Capital Programme and Capital Strategy (as outlined in Appendices 2 and 3 within the report) be approved;

6.    That the Treasury Management Policy Statement Treasury Management Strategy Statement MRP Policy and Annual Investment Strategy and Treasury Management Practices (as outlined in Appendices 4A, 4B and 4C within the report) be approved;

7.    That the Fees and Charges Schedule 2026/27 (as outlined in Appendix 5 within the report) be approved;

8.    That the report of the Section 151 Officer, under Section 25 of the Local Government Act 2003 on the robustness of the estimates made for the purposes of the budget calculations and adequacy of proposed financial reserves be noted (as outlined in Paragraph 10 within the report);

9.    That the Council Tax for a Band D property in 2026/27 be set at £231.48 (£7.83 per annum increase on 2025/26 levels) for Boston Borough Council and £82.44 (£1.35 per annum increase on 2025/26 levels) for Boston Special Expenses;

10.That the Annual Delivery Plan for 2026/27 (as outlined in Appendix 6 within the report) be approved;

11.That the application of the Living Wage Supplement to be paid to all employees whose current hourly rate falls below the Real Living Wage Foundation rate of £13.45 with effect from 1 April 2026, as outlined in paragraphs 9.2 and 9.3 within the report, be approved; and

12.That the Pay Policy report and Statement 2026/27 (as outlined in Appendices 8A and 8B within the report) be approved.