Balancing the Budget

Balancing the budget is a core responsibility for all local authorities, ensuring that the services residents rely on can continue to be delivered both efficiently and sustainably. With rising demand for essential services such as adult social care and children's services, councils are under increasing pressure to manage limited resources. Achieving a balanced budget involves difficult decisions about spending priorities, service delivery models, and long-term financial planning.

Local government continues to face a range of challenges, including inflationary pressures, uncertainty around future funding, and increased service demand. However, several anticipated reforms may offer greater financial stability and clarity for councils. These include the long-awaited Fair Funding Review, which aims to deliver a more transparent and equitable distribution of funding based on up-to-date data and local needs. In addition, the introduction of multi-year financial settlements is expected to replace the current year-by-year approach, giving councils the ability to plan strategically and invest in long-term service transformation.

During 2024/25, the council approved a comprehensive savings programme for implementation during 2025/26 and 2026/27. Detailed information on the specific savings can be found in Appendix 1 of the Revenue and Capital Budget 2025-26 and MTFS 2025-2028.

Through careful financial planning, the council is confident it will be able to put forward a balanced budget for 2026/27 without needing to implement additional budget savings. However, achieving this will require making some difficult decisions, particularly regarding council tax levels and sales fees and charges to protect vital services that people rely on.