At a meeting of Full Council on Wednesday (12 February 2025) we set our net budget for 2025-2026 at £769.8 million and agreed to a council tax rise of 4.99%.
At the meeting a number of budget-related reports were agreed, including the Revenue Budget Report 2025-2026 which can be found on the Council meeting agenda item 10.
This report sets out our current financial position and includes the impact of external factors beyond our control which continue to put finances under huge pressure, including pay and price inflation and a continuing increase in cost and demand for services, especially children’s services and adult social care.
The Revenue Budget Report and accompanying appendices also detail our reserves position and a Five-Year Financial Plan which includes savings that will need to be achieved by 2029-2030.
The meeting of Full Council heard that we have worked hard to set a balanced budget for 2025-2026, and the financial position remains challenging, with difficult decisions needing to be made in the months ahead.
Final decisions have yet to be made on all the budget savings proposals put forward in the report as some will need to be considered separately at future Cabinet meetings and be subject to full public consultation or engagement where appropriate. This will give residents the chance to have their say before final decisions are made.
The budget savings outlined in the report go alongside a programme to change the way we work as a whole, ensuring we are operating as One Council, with some functions being brought together to reduce spending and avoid duplication.
All expenditure is being challenged and strict measures to reduce spending across all areas of the authority remain in place, including vacancy management, reducing expenditure on procurement and reducing spend significantly around buildings which are no longer used.
Council Leader Councillor Barry Lewis said:
“Strong and effective leadership and financial management has enabled us to set a balanced budget for the year ahead and while the situation remains extremely challenging we have a robust plan in place for 2025-2026.
“We are doing what we can, including changing the way we work across the council and following strict measures to cut costs at every level.
“However, the challenges we continue to face are far greater than experienced before and are down to external factors simply outside our control.
“We fully acknowledge that the use of reserves is not sustainable, and we are pleased that the hard work we have done to manage our finances over the last few years means that we are able to set the 2025-2026 budget without needing to draw down further from our reserves.
“The demand pressures we are facing are forecast to continue, which is why on top of all that we are doing, and the difficult decisions we are having to make, we continue to lobby government for extra funding, especially for social care and highways maintenance.”
Cabinet Member for Corporate Services and Budget Councillor Simon Spencer said:
“It has been a tough road to get to where we are and the position will remain difficult for some time.
“However, we believe the budget we have agreed is sustainable and the council tax level is fair if we are to continue to provide vital services for older and vulnerable people and children.
“We acknowledge the rise in council tax will not be welcomed by residents with already stretched household budgets but we have had a clear steer from government on the level we should be setting in order to raise much-needed extra funds.”
Councillor Spencer added:
“The robust savings plan agreed at the beginning of 2024 is on track to achieve 100% of its target in the current year, and we are confident that the new savings plan put forward for the year ahead will do the same."