Agenda item - Budget Setting and Corporate Plan for 2026/2027 and the Medium-Term Financial Strategy up to 2030/2031

(Please note appendix 3 is not used for this report)

Report of Assistant Director Finance (Section 151 Officer)

Purpose of report

To consider and recommend the Budget Setting for 2026/27 and MTFS 2030/31 as per the recommendations.

Recommendations

The Executive resolves to:

1.1 Recommend this budget proposal to Council, and in doing so note the summary of consultation responses in Appendix 10.

1.2 Delegate authority to the Section 151 Officer (S151), following consultation with the Leader of the Council and Portfolio Member for Finance, Regeneration and Property to complete the legal Council Tax calculations once all the information required has been received and submit as appendices to the budget report to Council.

1.3 Delegate authority to the S151, following consultation with the Leader of the Council and Portfolio Member for Finance, Regeneration and Property to make appropriate changes to the proposed budget to Council including policies and plans.

The Executive resolves to recommend to Council as follows:

1.4 Approve the proposed Fees and Charges schedule for 2026/27 (Appendix 7) and statutory notices be placed where required.

1.5 Consider and note the Equality Impact Assessments of the Budget (Appendix 8)

1.6 In relation to the Corporate Plan (Section 4.1) to:

1.6.1 Note the Corporate Plan Vision and Strategy set out in Appendix 1.

1.6.2 Approve the Annual Delivery Plan set out in Appendix 2.

1.7 In relation to the Revenue Budget Strategy (Section 4.2) and Medium-Term Financial Strategy (MTFS) (Section 4.6) to approve:

1.7.1 The net revenue budget for the financial year commencing on 1 April 2026, as set out in Table 4.2.1, and further analysed in the Budget Book provided at Appendix 12.

1.7.2 The MTFS and Revenue Budget 2026/27 (Sections 4.6 and 4.2 respectively), including the Savings Proposals and Investments included at Appendices 4 and 5 respectively.

1.8 In relation to Council Tax (Section 4.2.49) to approve:

1.8.1 An increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2026 of £5, resulting in a Band D charge of £163.50 per annum.

1.8.2 From 1 April 2027 the implementation of a premium (second homes premium) of 100% for dwellings that are no one’s sole or main residence and are substantially furnished, following consultation undertaken in November and December 2024 which showed 88% support for the introduction.

1.8.3 That the mandatory notice of 12 months to all owners of second homes that a premium will commence from 1 April 2027 be issued.

1.8.4 That relevant exceptions be applied as set out by Government guidance (Appendix 22).

1.9 In relation to the Capital Programme and related strategies (Section 4.3) to approve:

1.9.1 The Capital Bid(s) and Capital Programme at Appendices 17 and 18 respectively.

1.9.2 The Capital and Investment Strategy 2026/27 (Appendix 19), including the Minimum Revenue Provision (MRP) Policy.

1.9.3 The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2026/27 (Appendix 21).

1.10 In relation to reserves (Section 4.4), to approve:

1.10.1 A minimum level of General Balances of £8.011m as supported by Appendix 15.

1.10.2 The Reserves Policy (Appendix 14).

1.10.3 The medium-term reserves plan described in Appendix 16.

1.11 In relation to the Pay Policy Statement, to approve:

1.11.1The Pay Policy Statement, as required by the Localism Act 2010, detailed in Appendix 9.

1.12 In relation to the Pension Fund (Section 4.5) to:

1.12.1 Approve a pension fund prepayment for the years 2026/27 – 2028/29 of £5.028m.

Resolved

(1) That the budget proposal be recommended to Council, and the summary of consultation responses be noted.

(2) That authority be delegated to the Section 151 Officer (S151), following consultation with the Leader of the Council and Portfolio Holder for Finance, Regeneration and Property to complete the legal Council Tax calculations once all the information required has been received and submit as appendices to the budget report to Council.

(3) That authority be delegated to the S151, following consultation with the Leader of the Council and Portfolio Holder for Finance, Regeneration and Property to make appropriate changes to the proposed budget to Council including policies and plans.

(4) That Council be recommended to approve the proposed Fees and Charges schedule for 2026/27 (Appendix 7 to the report) and statutory notices be placed where required.

(5) That Council be recommended to consider and note the Equality Impact Assessments of the Budget (Appendix 8 to the report).

(6) That Council be recommended to note the Corporate Plan Vision and Strategy (Appendix 1 to the report).

(7) That Council be recommended to approve the Annual Delivery Plan (Appendix 2 to the report).

(8) That, in relation to the Revenue Budget Strategy (Section 4.2 of the report) and Medium-Term Financial Strategy (MTFS) (Section 4.6 of the report), Council be recommended to approve:

i. The net revenue budget for the financial year commencing on 1 April 2026 (Table 4.2.1 of the report) and further analysed in the Budget Book (Appendix 12 to the report).

ii. The MTFS and Revenue Budget 2026/27 (Sections 4.6 and 4.2 respectively of the report), including the Savings Proposals and Investments included at Appendices 4 and 5 respectively.

(9) That, in relation to Council Tax (Section 4.2.49 of the report), Council be recommended to approve:

i. An increase in the Basic Amount of Council Tax for Cherwell District Council for the financial year beginning on 1 April 2026 of £5, resulting in a Band D charge of £163.50 per annum.

ii. From 1 April 2027 the implementation of a premium (second homes premium) of 100% for dwellings that are no one’s sole or main residence and are substantially furnished, following consultation undertaken in November and December 2024 which showed 88% support for the introduction.

iii. That the mandatory notice of 12 months to all owners of second homes that a premium will commence from 1 April 2027 be issued.

iv. That relevant exceptions be applied as set out by Government guidance (Appendix 22 to the report).

(10) That, in relation to the Capital Programme and related strategies (Section 4.3 of the report), Council be recommended to approve:

i. The Capital Bid(s) and Capital Programme at Appendices 17 and 18 of the report respectively.

ii. The Capital and Investment Strategy 2026/27 (Appendix 19 to the report), including the Minimum Revenue Provision (MRP) Policy.

iii. The Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2026/27 (Appendix 21 the report).

(11) That, in relation to reserves (Section 4.4 of the report), Council be recommended to approve:

i. A minimum level of General Balances of £8.011m as supported by Appendix 15 of the report.

ii. The Reserves Policy (Appendix 14 of the report).

iii. The medium-term reserves plan described in Appendix 16 of the report.

(12) That Council be recommended to approve The Pay Policy Statement, as required by the Localism Act 2010, detailed in Appendix 9 to the report.

(13) That, in relation to the Pension Fund (Section 4.5 of the report), Council be recommended to approve a pension fund prepayment for the years 2026/27 – 2028/29 of £5.028m.

The Assistant Director Finance (Section 151 Officer) submitted a report to consider and recommend the Budget Setting for 2026/27 and Medium Term Financial Strategy (MTFS) 2030/31.

In introducing the report, the Portfolio Holder for Finance, Regeneration and Property advised that the proposed net budget of the Council was £32.3 million, an increase of £6.1 million from 2025/2026. It was planned to fund £1.9 million of service improvements and £1.3 millions of development funds would be set aside for strategic development and local area development. £2.3 million of savings proposals and operational efficiencies would be delivered as well as a capital programme of £31.6 million, of which £17.9 million was expected to be spent in 2026/20271, including significant investment in homeless provision.

Over the last two years, there had been significant engagement with the Government on the potential impacts of the fair funding review and the business rates reset which could have had a detrimental effect for Cherwell. The Government's provisional financial settlement resulted in the council receiving £4.4 million additional funding in 2026/2027 compared to what it had anticipated it would receive at the time of the public consultation on the budget.

The Portfolio Holder for Finance, Regeneration and Property confirmed that, in addition to the balanced budget for 2026/2027, as legally required, based on current estimates, including growth in business rates and council tax, there would be a balanced budget over the next three years.

In seconding the report, the Chair thanked all respondents to the public consultation for their comments and feedback, which had been taken in consideration when setting the budget.

Councillor Watkins, Leader of the Labour Group, addressed the meeting commenting that she was pleased and appreciated that Executive had considered and acted upon the consultation feedback in respect of proposed changes to the funding of Banbury Museum.