Agenda item

(A report by Russell Stone, Director of Finance and Section 151 officer)

The Committee received a report from the Director of Finance (S151 Officer), which was presented by the Head of Finance Delivery (PSPSL).

The report set out the Draft Budget Setting Report 2026/27 and the accompanying Medium-Term Financial Plan (MTFP) for the period 2026/27 to 2030/31. A recommendation was sought from the Committee in respect of the 2026/27 precept and Band D Council Tax level, and the report provided updated financial assumptions, service cost projections across each service area and reserve requirements.

Members noted that the report should be considered in the context of continued financial pressure on local government, incorporating national inflation assumptions, pay award expectations, revised recharge allocations and operational cost changes.

The BTAC precept funded a wide range of visible frontline services, including open spaces, Central Park, public conveniences, town centre maintenance, events and allotments. The proposed precept requirement for 2026/27 was £779,470 reflecting a Band D charge of £82.44, an increase of 1.67% (approximately 3 pence per week). Nearly 70% of BTAC households fall within council tax Bands A and B, where the weekly increase would be around 2 pence.

Members were advised that the BTAC tax base had decreased slightly for 2026/27, and that a prudent collection rate assumption of 97.82% remained in place. Inflation of 3.7% had been applied for 2026/27, reducing to 2% in later years.

A detailed review of service budgets had resulted in revised cost allocations, particularly for grounds maintenance, public conveniences and support services.

Table 4 on page 35, indicated the budget for 2026/27 by expenditure and income with the 2025/26 budget as a comparison. The total expenditure would be £708,450 and the total income was £21,130. As the net expenditure was below the budget requirement, a contribution of £92,150 was proposed to be made to reserves. Although this was the current budgeted position, during 2026/27 a wider review of recharges and BTAC expenditure would be undertaken which may result in further reductions or potential increases.

The Head of Finance Delivery summarised each of the tables appended to the report in relation to each of the Committee’s service delivery areas. She also indicated that the report proposed increasing BTAC’s minimum reserve level from £70,000 to £100,000, reflecting the scale and risk profile of BTAC services and aligning with professional advice from the S151 Officer.

Deliberation by members occurred and the following points were considered:

•      There was detailed discussion on the appropriate level of the precept increase. Some Members questioned whether the recommended 1.67% rise was necessary, suggesting that a 1% increase would still maintain a healthy level of reserves. It was noted that even under a reduced increase, the projected reserves for 2026/27 remained in surplus.

•      Some Members cautioned against adopting a lower increase, stressing the importance of long?term stability and avoiding a scenario where minimal increases now could necessitate much larger increases in future years. Reference was made to previous periods when council tax freezes had later created financial pressures. The impact of the Community Governance Review and the difficulty with predicting unforeseen expenditure and the impact on the budget was considered.

•      Members discussed the justification for increasing the minimum reserve level.

•      Service delivery was considered. Members considered whether there would be an impact on services should a lower increase be chosen.

•      Clarification was provided that BTAC determined its precept annually and could review its approach each year. However, adopting the recommended increase at this stage would provide a stronger financial foundation.

The recommendation was proposed by Councillor Barrie Pierpoint and seconded by Councillor Stephen Woodliffe.

Resolved:

1.    That BTAC noted the 2026/27 budget and MTFP position and recommended to Cabinet and Full Councilthat it be approved for inclusion within the Council’s Annual Budget Report.

2.    That BTAC recommended to Cabinet and Full Council  the level of its Special Expense precept for 2026/27 at £779,470, together with a Council Tax Band D charge of £82.44; and

3.    That BTAC recommended to Cabinet and Full Council an increase in the minimum reserve balance from £70,000 to £100,000for the period 2026/27 to 2030/31.

[Councillors Anne Dorrian and Emma Cresswell left the meeting at 7.19pm, following consideration of the above item.]