Issue - meetings

To approve: The General Fund Budget and HRA Budgets for 2026/27, including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Policy/Strategy and the Annual Delivery Plan including the approval of Council Tax levels (report of the Director of Finance (Section 151 Officer) enclosed).

(Please note that in accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote will be taken on Budget recommendations).

(Members are reminded that if they are two months or more in arrears, they must disclose the fact and not vote on any item to set tax or any decision which may affect its calculation).

Consideration was given to the report of the Director of Finance (Section 151 Officer) to approve the General Fund Budget and Housing Revenue Account (HRA) Budgets for 2026/27, including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Policy/Strategy, the Annual Delivery Plan and Living Wage Supplement, including the approval of Council Tax levels.

The Portfolio Holder for Finance introduced the report by thanking the Finance Team for their diligent work in producing a balanced budget, and expressed appreciation to Cabinet Members, Assistant Directors and officers for their commitment throughout the process. The following main points were highlighted:

• The Annual Delivery Plan document reflected the anticipated impacts of Local Government Reorganisation and set out a broad programme of activity to support communities;
• Ongoing partnership work continued to influence national discussions on Local Government Reorganisation and Internal Drainage Board (IDB) levies;
• Investment in a new Local Plan was highlighted, as were savings achieved through the South and East Lincolnshire Councils Partnership which had exceeded the initial £42m savings target, and the recent procurement of a leisure operator, which would deliver further efficiencies;
• It was noted that the budget had been prepared amid significant financial pressures, changes to the Local Government Finance system, increased reliance on Revenue Support Grant and locally raised Council Tax;
• Provision had been made for the introduction of a food waste collection service, and members were advised of continued Internal Drainage Board (IDB) pressures, with the 2026/27 levy exceeding £3.7m and accounting for 55% of the Council Tax retained by the authority;
• Despite challenges, the proposed budget delivered a balanced and sustainable position with no in-year efficiency target for 2026/27 whilst protecting services and maintaining capacity for investment. The Capital Programme totalled over £25m, and Treasury Management activity had supported the balanced position through increased returns;
• The proposed Council Tax of £214.92 for a Band D property equated to an increase of 12 pence per week from the 2025/26 position. Members were asked to note that 74% of properties in South Holland fell within the A to C Council Tax brackets and therefore increases were lower, as follows: Band A, 8 pence; Band B, 10 pence; and Band C, 11 pence;
• The following minor amendments to Fees and Charges at Appendix 5 were to be noted:
  • In respect of ‘Private Hire and Hackney Carriage Licences’ at page 225 of the agenda pack, the word ‘renewal’ needed to be added at the second row, with the 2026/27 fee amended to £229 instead of £240; and
  • In respect of ‘Scrap Metal’ at page 226 of the agenda pack, the third row needed to be removed; and
• Further proposals included a significant investment in the Housing Revenue Account (HRA) and HRA Capital Programme, focussing on Decent Homes and Major Adaptations and Green Homes Energy Efficiency. Use of the Spalding Special Expense Reserve for parks and play areas was also proposed, with a detailed plan to follow.

In conclusion, the Portfolio Holder stated that the budget responded  ...  view the full minutes text for item 103

To approve and refer to Council on 26 February 2026 for consideration and approval: The General Fund Budget for 2026/27, including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Policy/Strategy and the Annual Delivery Plan including the approval of Council Tax levels (report of the Director of Finance (S151 Officer) enclosed).

Consideration was given to the report of the Director of Finance (S151) which requested approval and referral to Council on 26 February 2026 for consideration and approval: The General Fund Budget for 2026/27, including the use of reserves, Medium Term Financial Strategy, Capital Programme and Strategy, Treasury Management Policy/Strategy and the Annual Delivery Plan including the approval of Council Tax levels.

The Portfolio Holder for Finance presented the report.

The creation of the budget had been challenging for South Holland.

This was because of the uncertainty over the outcome of the Government’s Fair Funding Review not becoming clear until mid-December.

To add to this, errors were flagged on the methodology used by the government to calculate the figures announced in December. This meant that further adjustments had to be made by the Government in the Final Local Government Settlement which was only released late last Wednesday.

The budget position continued to be refined from the information provided post Final Settlement. Whilst the position for 2026/27 remained unchanged, it was future years that were affected, with the gap being more than what  had been budgeted for from the original figures provided in the Provisional Settlement.

General Fund budget:

While the move to multiyear settlements significantly improved medium term visibility, the immediate impact for South Holland District Council had been a rebalancing of funding sources exercise, rather than it being a net increase in resources.

In particular, the reset of Business Rates and the revaluation exercise being progressed had materially reduced locally retained income, thus placing greater reliance on Revenue Support Grant and transitional protections provided directly by the government.

This was at a time when the following was sought:

·             Supporting those who were most vulnerable in our society

·             Creating a vibrant District for our residents to live in, and also

·             Creating an environment for businesses to grow.

The budget also included expenditure for the creation of the Food Waste collection service for which SHDC received no additional resource from the government and which the Authority had managed to budget for within existing resources.

Furthermore, the Internal Drainage Boards continued to be an ever-increasing pressure, with an increase in their levy for 2026/27 of 4.6%. This took the increase since 2021/22 to 49% with the total cost for 2006/27 being £3.723 million which now accounted for 55% of the Council Tax retained.

Against this backdrop, the proposed budget:

·             Delivered a balanced and sustainable position for 2026/27

·             Supported statutory service delivery

·             Protected financial resilience, and

·             Maintained capacity for transformation and investment

Additional efficiency measures, further partnership working across the South & East Lincolnshire Councils Partnership, and maximising income opportunities had been key to mitigating the financial challenges. Despite a complex and volatile environment, the proposed budget enabled the Council to maintain service delivery in line with its priorities.

Included in the budget pack was a suite of Treasury Management documents. These were very important for the Council as they outlined its Treasury Management strategy for the year which included the management of the Council’s  ...  view the full minutes text for item 102