Report of the responsible financial officer on the budget 2026/27

1. INTRODUCTION

The financial background to this report is that the Council’s current financial position is sound.  However, the Council’s responsibilities have increased significantly, and the Council have recognised that this needs to be reflected in the current and future budgets. Accordingly, the budget has increased and there is likely to be a sizeable increase in our precept for next year: 

More detail on the background to the budget will be provided to the meeting of Finance Committee on 26th January 2026.

The purpose of this report is to help the Committee to formulate budget recommendations to the Finance Committee and to the Council.  The Parks Committee section of the Council’s draft budget is attached to this report.  Members will note that it provides details as follows:• Actual income and expenditure to 31st December 2025 • Revised estimates for 2025/26 • Draft budget for 2025/26 and• Projection for 2026/27

These are considered in the paragraphs below.

2. ACTUAL INCOME AND EXPENDITURE TO 31ST DECEMBER 2025

Accepted good accounting practice requires that budgetary control be carried out during each financial year. An important element of that process is to compare actual income and expenditure for the 9 months ended 31st December 2025 with the approved budget for the current financial year 2025/26 to identify any significant additional costs or savings and take any appropriate action.  However, as variances have been included in the full year revised estimate for 2025/26, and are dealt with in the next paragraph, there is nothing else to bring to Members attention.

3. REVISED ESTIMATE 2025/26 AND DRAFT BUDGET 2026/27

The revised estimate for 2025/26 is detailed in the attached paper and is £14,973 below the original budget (£348,953 compared with £363,926).  The variances relate to various under & overspends against the original budgets. This variance was reported to Finance Committee in the half-year budget monitoring report in November.

4. DRAFT BUDGET 2026/27

The draft budget is detailed in the attached annex and shows total net expenditure for 2026/27 as £415,902.  Members will be aware that inflation is running high for the last few years but has reduced to 3.6% in Dec 25 (Consumer Price Index).  The course that inflation will take during 2026/27 is currently very uncertain. Nevertheless, decisions have to be made about what allowances to include in budgets.  The figures attached are based on 4% pay inflation for 2026/27 and on allowances for price inflation where appropriate. In relation to income, it is suggested that:

• cemetery fees – ‘headline’ fees were increased to £950 in April 2025 and it is suggested that a further increase in 2026 may not be appropriate for burials as there already seems to be less of a demand for these due to the increased popularity of cremations.  Also, the fee for burial of cremated remains was increased from £400 on 1st April 2024 with a consideration for an increase in April 26 as there was no increase in April 2025.
• rents for allotments - they were increased to £56 (large plots) and £28 with effect from 1st April 2025 and consideration will be needed as to whether these are increased again in 2026.

Members are invited to put forward ‘bids’ for service improvements or savings which the Committee may decide to recommend to Finance Committee, and to the Council, for inclusion in the Council’s final 2026/27 budget. 

5. FUNDS AND RESERVES 

The position for all of the Council’s funds and reserves is attached.

Members will also be able to see from the funds and reserves schedule that:

• Balances bought forward from 2024/25 totalled £40,523 over that financial year and contributions of £20,600 from this year’s revenue budget will be made at the end of this financial year.  This will bring the total reserves figure for Elections / Vehicles & Plant / Civic Centre Building Maintenance & the Localism Renewals Fund to £61,123. 

6. RECOMMENDATIONS

It is RECOMMENDED that:

1. Actual income and expenditure for the 9 months ended 31st December 2025 be noted; and
2. The Committee approve, for referral to the Finance Committee and to the Council:
   • the Parks Committee section of the revised estimate for 2025/26 and the draft budget for 2026/27;
   • its decisions in relation to cemetery fees and allotment rents from 1st April 2026;
   • its recommendations in relation to service options. 

This report has been prepared by Debbie While, Responsible Financial Officer who will be pleased to respond to any questions arising.