Our budget for 2026 to 2027

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Final budget decision to be made by Full Council

We have set out our proposed budget for the year ahead (2026 to 2027), which has now been approved by Cabinet. It will go to Full Council on Tuesday 3 February for a final decision. The budget sets out how we will continue to:

support residents who need us most
protect essential services across ��
enhance our communities and improve daily life
prepare for the transition to two new unitary councils in April 2027

This year’s budget planning has taken place against extremely challenging financial circumstances. Under the national Fair Funding Review, ��’s government funding will reduce by over £50 million next year – the largest reduction for any council in the country. At the same time, the cost of providing services continues to rise and more people are needing support.

To deliver a balanced budget, we are proposing a 4.99% Council Tax increase (including the Adult Social Care Precept), alongside a programme of efficiencies and reduced borrowing.

We understand that any increase is difficult for residents. Through our consultation, many people told us they were concerned about the impact on household budgets but also recognised the importance of protecting vital frontline services.

The budget

Our budget sets out how we will spend more than a billion pounds on essential services in 2026 to 2027. Over 67% of this will support adults’ and children’s services – including care for older residents, support for those with disabilities or complex needs, and services for children and families.

Essential day‑to‑day services such as road maintenance, libraries, countryside management, recycling centres, and protection services like �� Fire and Rescue all continue to play a vital role in keeping people safe and supporting daily life.

The budget also includes a £297 million capital investment programme for 2026 to 2027. This will fund:

new special educational needs and disabilities (SEND) units in mainstream schools and expanded school places
improved and modernised care accommodation
a new short breaks centre for adults with additional needs
ongoing library refurbishments
upgrades to buildings and fire stations
an enhanced programme of highways maintenance and flood alleviation
and much more

Next steps

This budget ensures we can continue delivering essential services while managing reduced funding and rising demand. It will now go to Full Council on Tuesday 3 February for final approval.

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