Agenda item

Report of Assistant Director Finance (Section 151 Officer)

 

Purpose of report

 

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

 

Recommendations

 

Council resolves to:

 

1.1         Have regard to the statutory report of the Chief Finance Officer (Section 25 report) at Appendix 3 in approving recommendations 1.2 – 1.10. 

 

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

 

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

 

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

 

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

 

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

 

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

 

1.5.1    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.

 

1.5.2    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.

 

1.6         In relation to Council Tax (Section 4.2.51) to approve:

 

1.6.1    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.

 

1.6.2    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.

 

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

 

1.6.4    That relevant exceptions be applied as set out by Government guidance (Appendix 24).

 

1.6.5    It be noted that the Council Tax Base 2026/27 was determined at the Executive meeting held on 6 January 2026:

 

a)            for the whole Council area as 60,654.5 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (“the 1992 Act”)]; and

 

b)            For dwellings in those parts of its area to which a Parish Precept relates as in the attached Appendix 23.

 

1.6.6    That the Council Tax requirement for the Council’s own purposes for 2026/27 (excluding Parish Precepts and Special Expenses) is £9,917,011.

 

1.6.7    following amounts be calculated for the year 2026/27 in accordance with Sections 31 to 36 of the 1992 Act:

 

a)            £162,009,253 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) of the 1992 Act, taking into account all precepts issued to it by Parish Councils and any additional special expenses.

 

b)            £145,153,645 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the 1992 Act.

 

c)            £16,855,608 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A (4) of the 1992 Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the 1992 Act).

 

d)            £277.90 being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the 1992 Act, as the basic amount of its Council Tax for the year (including Parish Precepts and Special Expenses).

 

e)            £6,938,598 being the aggregate amount of all special items (Parish Precepts and Special Expenses) referred to in Section 34(1) of the 1992 Act as per the attached Appendix 23.

 

f)             £163.50 being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T(1(a) above), calculated by the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish Precept or special item relates.

 

1.6.8    It be noted that for the year 2026/27 the Oxfordshire County Council and the Police and Crime Commissioner for Thames Valley have issued precepts to the Council, in accordance with Section 40 of the 1992 Act, for each category of dwellings in the Council’s area as indicated below:

 

Valuation Band	Oxfordshire County Council	Police and Crime Commissioner for Thames Valley
	£	£
A	1,337.85	198.85
B	1,560.83	232.00
C	1,783.80	265.14
D	2,006.78	298.28
E	2,452.73	364.56
F	2,898.68	430.85
G	3,344.63	497.13
H	4,013.56	596.56

 

1.6.9    The Council, in accordance with Sections 30 and 36 of the 1992 Act, hereby sets the amounts shown in Appendix 24 as the amounts of Council Tax for the year 2026/27 for each part of its area and for each of the categories of dwellings.

 

1.6.10The Council has determined that its relevant basic amount of Council Tax for 2026/27 is not excessive in accordance with principles approved under Section 52ZB of the 1992 Act.

 

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

 

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

 

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

 

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

 

1.8         In relation to reserves (Section 4.4) to approve:

 

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

 

1.8.2    The Reserves Policy (Appendix 14).

 

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

 

1.9         In relation to the Pay Policy Statement approve:

 

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

 

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

 

1.10.1Approve a pension fund prepayment for the years 2026/27 – 2028/29 of £5.028m.

 

 

 

Resolved

 

(1)          That, having due regard, the statutory report of the Chief Finance Officer (Section 25 report) be noted.

 

(2)          That the proposed Fees and Charges schedule for 2026/27 be approved and it be noted that statutory notices would be placed where required.

 

(3)          That, having given due consideration, the Equality Impact Assessments of the Budget be noted.

 

(4)          That the Corporate Plan Vision and Strategy be noted.

 

(5)          That the Annual Delivery Plan be approved.

 

(6)          That, in relation to the Revenue Budget Strategy and Medium-Term Financial Strategy (MTFS), the following net directorate revenue budgets for the financial year commencing on 1 April 2026 be agreed.

 

Directorate	Net budget 2026/27 £m
Chief Executive’s Office	2.402
Resources	9.978
Neighbourhood Services	8.888
Place and Regeneration	0.865
Service Sub-total	22.133
Corporate Costs	6.655
Policy Contingency	2.179
Development Funds	1.300
Net Cost of Services	32.267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7)          That the Medium Term Financial Strategy and Revenue Budget 2026/27, including the Savings Proposals and Investments be approved.

 

(8)          That 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, be approved.

 

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

 

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

 

(11)       That it be approved that relevant exceptions be applied as set out by Government guidance (Appendix 24 to the report).

 

(12)       That it be noted that that the Council Tax Base 2026/27 was determined at the Executive meeting held on 6 January 2026:

 

a)            for the whole Council area as 60,654.5 [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (“the 1992 Act”)].

 

b)            For dwellings in those parts of its area to which a Parish Precept relates (Appendix 23 to the report).

 

(13)       That it be agreed that the Council Tax requirement for the Council’s own purposes for 2026/27 (excluding Parish Precepts and Special Expenses) is £9,917,011.

 

(14)       That the following amounts be calculated for the year 2026/27 in accordance with Sections 31 to 36 of the 1992 Act:

 

a)            £162,009,253 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (2) of the 1992 Act, taking into account all precepts issued to it by Parish Councils and any additional special expenses.

 

b)            £145,153,645 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) of the 1992 Act.

 

c)            £16,855,608 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council, in accordance with Section 31A (4) of the 1992 Act, as its Council Tax requirement for the year (Item R in the formula in Section 31B of the 1992 Act).

 

d)            £277.90 being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the 1992 Act, as the basic amount of its Council Tax for the year (including Parish Precepts and Special Expenses).

 

e)            £6,938,598 being the aggregate amount of all special items (Parish Precepts and Special Expenses) referred to in Section 34(1) of the 1992 Act as per the attached Appendix 23.

 

f)             £163.50 being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T(1(a) above), calculated by the Council, in accordance with Section 34(2) of the 1992 Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish Precept or special item relates.

 

(15)       That it be noted that for the year 2026/27 the Oxfordshire County Council and the Police and Crime Commissioner for Thames Valley have issued precepts to the Council, in accordance with Section 40 of the 1992 Act, for each category of dwellings in the Council’s area as indicated below:

 

Valuation Band	Oxfordshire County Council	Police and Crime Commissioner for Thames Valley
	£	£
A	1,337.85	198.85
B	1,560.83	232.00
C	1,783.80	265.14
D	2,006.78	298.28
E	2,452.73	364.56
F	2,898.68	430.85
G	3,344.63	497.13
H	4,013.56	596.56

 

(16)       That the Council, in accordance with Sections 30 and 36 of the 1992 Act, hereby sets the amounts shown in Appendix 24 to the report as the amounts of Council Tax for the year 2026/27 for each part of its area and for each of the categories of dwellings.

 

(17)       That the Council has determined that its relevant basic amount of Council Tax for 2026/27 is not excessive in accordance with principles approved under Section 52ZB of the 1992 Act.

 

(18)       That the Capital Bids and Capital Programme be approved.

 

(19)       That the Capital and Investment Strategy 2026/27, including the Minimum Revenue Provision (MRP) Policy, be approved.

 

(20)       That the Treasury Management Strategy, including the Prudential Indicators, and Affordable Borrowing Limit for 2026/27 be approved.

 

(21)       That a minimum level of General Balances of £8.011m be approved.

 

(22)       That the Reserves Policy be approved.

 

(23)       That the  Medium-Term Reserves Plan be approved.

 

(24)       That the Pay Policy Statement, as required by the Localism Act 2010, be approved.

 

(25)       That a Pension Fund prepayment for the years 2026/27 – 2028/29 of £5.028m be approved.

 

(For information, having been proposed, seconded and debated, on being put to the vote, the Cherwell Conservative and Independent Alliance amendment was lost.)