Agenda item

The Director of Finance submits a report setting out the City Mayor’s proposed Draft General Fund Revenue Budget for 2026/27.

The draft minute extracts detailing the respective Scrutiny Commissions’ discussion on the Draft Revenue and Capital Budget reports are attached:

Housing – 13^th January 2026

Economic Development, Transport and Climate Emergency – 14^th January 2026

Adult Social Care – 15^th January 2026

Children Young People and Education – 20^th January 2026

Culture and Neighbourhoods – 22^nd January 2026

The Director of Finance submitted a report setting out the City Mayor’s proposed Draft General Fund Revenue Budget for 2026/27.

It was noted that cost mitigating work had been undertaken in social care, and it was suggested to roll this into a third year as it had been very successful.

Members were invited to ask questions and make comments, the following was noted:

• With regard to queries about the recommendations made by the Adult Social Care Scrutiny Commission, it was noted that comments from the commissions were collated, and it was up to the City Mayor if they were incorporated in the budget.
• In response to queries about figures that were not yet available, it was noted that these figures would be updated and members would be made aware of their implications.  It was further clarified that with relation to Core Spending Power, this included Council Tax rises, and did not take inflation or cost pressures into account.  It was noted that government money would help, but it would not prevent the Council from going into reserves over the next four years and spending more than its income.
• It was further added that Core Spending Power increases quoted by Government were based on the 2024/25 financial year, and some of these increases had already been built into the strategy.  It was also noted that some of the increase was due to the recognition of the deprivation in the City, deprivation also links to additional costs.  
• With regard to Local Government Reorganisation (LGR), it was acknowledged that there would be initial costs, but these would be off-set by savings and the payback was quick.  It was added that the government had confirmed that they expected existing council budgets to fund LGR.
• With regard to underspend in Adult Social Care (ASC), it was explained that this was often in relation to vacancies, and income came from the NHS for package costs.
• It was further noted with regard to ASC that contracts with providers had an annual increase to take account in rises in the national living wage.  Significant improvements had been made in 2025/26, and package costs had been brought down.
• In response to points made about providing resources for Adventure Playgrounds, it was noted that the City Mayor had been meeting with five of them and the issues they faced included issues around tenure and land and they were looking for ways to be more sustainable.
• In response to points made on the reliance on reserves, it was explained that it was necessary to work to a balanced income and expenditure budget, and this was always the target.  The Council had a budget strategy that did not need capital receipts or a capitalisation directive.  There had been lower use of reserves than last year, so the approach was working.
• In response to points made on the ASC precept, it was explained that the ASC precept this year had been £3.5m, but growth had been £13m, so the increase had not been covered. 

A recommendation was MOVED by Cllr Kitterick and SECONDED by Cllr Waddington that the provision of resources to allow the sustainable continuation of the Adventure Playground network.

Upon being put to the vote, the recommendation was AGREED.

The City Mayor committed to update members on this before Full Council.

AGREED:

1) That the report be noted.

2) That the recommendations for Full Council be noted by the committee.

3) That comments made by members of this commission to be taken into account by the lead officers.

4) OSC recommended that it would like the provision of resources to allow for the sustainable continuation of the Adventure Playground network.

Councillor Kitterick left the meeting following the consideration of this item.