Issue - meetings

To consider the Council’s proposed budget for 2026/27.

Contact: Kevin Mulvaney Service Director, Finance

RESOLVED –

1)    That it be noted the proposed budget was balanced based on assumptions around the potential impact of the Fair Funding Review 2.0 as outlined in the Medium Term Financial Strategy (MTFS) in September. It was noted these assumptions may be subject to change when the provisional local government finance settlement was published by Government (expected mid-December) and furthermore once the final settlement was published. A balanced budget must be set no later than 10th March 2026.

2)    That approval be given to a 5 week consultation on the Proposed Budget for 2026/27 starting on 3 December 2025 and closing on 7 January 2026. This includes the proposed 2.99% increase in core Council Tax and the 2% increase in the Adult Social Care precept.

3)    That the forecast spending and funding plans for the 2026-27 year and indicatively the following 2 years (Appendix B) be noted;

4)    That it be noted the Proposed Budget for 2026/27 presented in the considered report was based on the approval and delivery of £6.9m of new savings for 2026/27 as identified in the report (Appendix D).

5)    That the forecast levels of statutory and other Council reserves as set out at Appendix C be noted;

6)    That the proposed savings as set out in Appendix D be noted.

Capital

7)    That the draft updated Capital Plan for 2025-33 for consultation as part of the budget (Appendix E) be noted

8)    That it be noted the proposed release of £57.7m uncommitted budget across the multi-year capital plan (£1.3m 2025/26, £56.4m 2026/27 onwards) to assist treasury management of the capital financing budget

9)    That the proposed addition of £35.1m budget towards a new sport and leisure facility in North Kirklees (£0.1m feasibility 2025/26, £35m construction budget 2028/29 – 2032/33) be noted.

10)That it be noted that following changes to the operation of business rates pools set out by Government, there would be no Leeds City Region business rates pool in 2026/27.

Housing Revenue Account

11)That it be noted that the proposed budget including rent and service charges increases for the HRA which was considered as a separate report at the meeting.

12)The Integrated Impact assessments referred to in paragraph 3.5 be noted.

Cabinet considered a report which provided the Council’s proposed budget for 2026/27 for consultation, which included the Capital, General Fund Revenue and Housing Revenue Account (HRA).  The report set out details of the overall budget position prior to the submission of a final budget to Council in February 2026.

The report explained the application of financial strategy and that the proposed budget included estimated changes to the Council’s main sources of income, corporate expenditure and service pressures based upon current information. Cabinet noted that the draft budget balanced the council’s ambition to transform and improve services for residents while focusing funding on local people and services that needed support the most. It built on the significant investment coming into Kirklees while setting a stable and prudent platform for service and economic development for future years.

The report advised that a public consultation on the proposals would take place from 3 December 2025 to 7 January 2026 and that a summary of the outcome would be presented at Cabinet on 10 February 2026.

RESOLVED –

1)    That it be noted the proposed budget was balanced based on assumptions around the potential impact of the Fair Funding Review 2.0 as outlined in the Medium Term Financial Strategy (MTFS) in September. It was noted these assumptions may be subject to change when the provisional local government finance settlement was published by Government (expected mid-December) and furthermore once the final settlement was published. A balanced budget must be set no later than 10th March 2026.

2)    That approval be given to a 5 week consultation on the Proposed Budget for 2026/27 starting on 3 December 2025 and closing on 7 January 2026. This includes the proposed 2.99% increase in core Council Tax and the 2% increase in the Adult Social Care precept.

3)    That the forecast spending and funding plans for the 2026-27 year and indicatively the following 2 years (Appendix B) be noted;

4)    That it be noted the Proposed Budget for 2026/27 presented in the considered report was based on the approval and delivery of £6.9m of new savings for 2026/27 as identified in the report (Appendix D).

5)    That the forecast levels of statutory and other Council reserves as set out at Appendix C be noted;

6)    That the proposed savings as set out in Appendix D be noted.

Capital

7)    That the draft updated Capital Plan for 2025-33 for consultation as part of the budget (Appendix E) be noted

8)    That it be noted the proposed release of £57.7m uncommitted budget across the multi-year capital plan (£1.3m 2025/26, £56.4m 2026/27 onwards) to assist treasury management of the capital financing budget

9)    That the proposed addition of £35.1m budget towards a new sport and leisure facility in North Kirklees (£0.1m feasibility 2025/26, £35m construction budget 2028/29 – 2032/33) be noted.

10)That it be noted that following changes to the operation of business rates pools set out by Government, there would be no Leeds City Region business rates pool in 2026/27.  ...  view the full minutes text for item 66