Agenda item

(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 a difficult budget to prepare, particularly given the significant and ongoing pressure created by the Internal Drainage Board (IDB) levy, which had increased by 56% since 2021/22, with future rises still uncertain. Members supported the approach of maintaining reserves at a safe level to protect statutory services and ensuring costs continued to be carefully managed. It was also noted that a special interest group continued to lobby Government for fairer and more equitable funding arrangements in relation to the IDB levy, and Members acknowledged the value of this work in helping the Council remain in a comparatively secure financial position.

The recommendations were moved by Councillor Sandeep Ghosh and seconded by Councillor Mike Gilbert.

Resolved:

1.     That the Draft Budget 2026/27, including all appendices, be approved and that it be forwarded to Council on 2^nd March 2026 for consideration and approval with the following specific recommendations:

a)    That the Medium Term Financial Strategy (at Appendix 1) be approved.

b)    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) has been set for 2026/27, as of the 23^rd December 2025, by the Director of Finance & Section 151 Officer under officer delegation in line with the Constitution;

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

d)    That the additions to and use of reserves (in Appendix 1 within the report) be approved;

e)    That the Capital Programme and Capital Strategy (in Appendices 2 and 3 within the report) be approved;

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

g)    That the Fees and Charges Schedule 2026/27 (in Appendix 5 within the report) be approved;

h)    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 (in Paragraph 10 within the report);

i)      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; and

j)      That the Annual Delivery Plan for 2026/27 (in Appendix 6 within the report) be approved.

2.     That authority be delegated to the Director of Finance (S151 Officer), in consultation with the Portfolio Holder for Finance, for the further amendment of this document (where needed to ensure financial integrity and reconciliation) in preparation for Council on 2^nd March 2026.