Agenda item

The Chief Finance Officer to provide the members with a verbal update on the proposed 2026/27 Spalding Special Expenses Budget.

Consideration was given to the presentation of the 2026/27 Budget Proposal.

The Chief Finance Officer presented the Spalding Special Expenses Proposed Budget for the 2026/27 financial year and highlighted the following:

The Chief Finance Officer explained that, unlike in previous years, a full written report had not been provided at this stage as the Council was still finalising the wider organisational budget for 2026/27.  A PowerPoint presentation had been prepared to allow early consultation with members of the current budget position for Spalding Special Expenses.

The Chief Finance Officer shared the presentation on-screen and gave an overview of the income?generating elements of the Spalding Special Expenses budget.

Members were reminded that Spalding Special Expenses were funded through council tax income, levied via a parish?level charge applied to residents of the Spalding Town area. This charge was calculated using the Council’s Band D equivalent methodology.

Last financial year (2025/26), the Band D charge set for Spalding Special Expenses was £23.13 per annum. The Council’s draft budget proposals for 2026/27—which were scheduled to be considered by Cabinet in February—recommended a revised Band D charge of £23.40. This represented:

• An annual increase of £0.27 (27p)
• Equivalent to a 1.17% uplift.

The Chief Finance Officer stressed that 27p reflected the annual increase, not a weekly charge.

With the revised Band D charge and updated tax base applied, the resulting projected council tax income for Spalding Special Expenses in 2026/27 was £228,056. This compared with £223,450 in the current financial year (2025/26), as referenced earlier in the Quarter 2 update.

• The Chairman enquired if the increased amounts for all the Council Tax band properties could be provided.
  • The Chief Finance Officer responded that a detailed breakdown would be provided to the members.

Members were advised that the presentation provided a summary of how the budget was currently positioned for the forthcoming financial year.

• The Chief Finance Officer confirmed that the slides could be circulated with the minutes to allow members further opportunity for review.

The Forum was informed that the overall proposed budget increase for 2026/27 was £4,646, and this uplift had been allocated across various service areas within Spalding Special Expenses.

The Chief Finance Officer drew attention to a number of cost pressures that had contributed to the increase, including:

• Pay inflation.

• Increased CCTV operational charges
• Adjustments to the Christmas decorations budget to align with actual costs.
• A newly included provision for a site attendant at Ayscoughfee

Alongside these pressures, the Chief Finance Officer explained that savings had also been identified to mitigate overall growth where possible.

The Chief Finance Officer emphasised that despite these pressures, the budget for 2026/27 had been managed within existing resources, meaning there would be no reliance on reserves to balance the budget. On this basis, and assuming no further unplanned expenditure was incurred, the reserves balance was expected to remain at £220,000.

Members were advised that the proposed budget, as presented, would now form part of the Council’s wider budget papers to be submitted to Cabinet in February, after which recommendations would be made to Council at the end of February for approval.

Members considered the 2026/27 Budget Proposal presentation and made the following comments:

• Members queried why the budget for Christmas decorations had increased from £10,000 in the current year to £25,000 in the next financial year.
  • The Chief Finance Officer responded that the increase was believed to relate primarily to electricity costs but confirmed that clarification would be sought, and a further explanation provided.
• Members expressed concern about the scale of the increase to the Christmas decorations budget, commenting that the rise appeared excessive and could not be attributed to electricity alone. It was noted that some decorations, such as those along The Crescent, were illuminated during daylight hours, and suggestions were made regarding the use of timers to reduce costs.
• Members discussed if the proposed budget was being used to fund expenditure that had not previously fallen within its remit and further noted that the increases appeared to coincide with savings made elsewhere within the budget and was the proposed budget absorbing additional costs without adequate justification.
  • The Chief Finance Officer explained that the budget increase for Christmas decorations related to the removal, storage, and reinstallation costs, which were subject to a tender process. An estimate had been included pending tender completion.

• A question was raised regarding the “Spalding Special Contributions”, which showed an increase from £49,000 to £78,00, members asked what activity or expenditure this related to.
  • The Chief Finance Officer advised that the increase incorporated costs for the Ayscoughfee site attendant, increased CCTV charges, and demand pressures at Ayscoughfee. These increases had been partly offset by reductions within the ad hoc events budget.
    • The Chief Finance Officer agreed to provide a further breakdown of the site attendant requirement.

• Members expressed concern regarding governance and the decision?making processes and queried how the Forum’s funding was allocated.
• The Chief Finance Officer confirmed that clarification would be sought and shared with members.

Members noted that due to the early date of the January Spalding Town Forum meeting, this had enabled the members to have sight of the details of the budget in advance and the necessary supporting information.

AGREED:

That the presentation of the 2026/27 Budget proposal be noted.