Agenda item

This report sets out proposals contained in the Revenue Budget report 2026-2027 as attached at Appendix A.  It also provides an overview of key issues arising from the Medium Term Financial Strategy.

Recommended                     -  That consideration be given to the report.

The Portfolio Holder for Resources and Council Operations, Councillor Alexander, submitted a report setting out proposals for the 2026/27 General Fund Revenue Budget, as attached at Appendix A of the report.  This also provided an overview of key issues which had arisen from the Medium Term Financial Strategy. 

The Council’s 2026/27 Revenue Budget required a net expenditure of £17,607,700 and under the budget proposals, as a result of Local Elections being reintroduced and a recent Government announcement of an additional capacity grant being made available to help the reorganisation of Councils, there would be no rise in Council Tax for Hyndburn residents for Hyndburn Council provided services.  The charge for a Band D property would, therefore, remain at £276.46.  The Budget report to Council would be revised accordingly.

A number of national and global issues had had an impact on the Council’s budgets along with the impact of higher inflation and forecast pay settlements, however, the Council intended to use the additional capacity grant to offset the proposed zero increase in Council Tax for residents of Hyndburn.  Lancashire County Council, the Police & Crime Commissioner and the Lancashire Combined Fire Authority have not yet formally taken their decisions on Council Tax levels for 2026/27.  It is expected that all three authorities will raise its Council Tax.  Relating to Band D properties, Lancashire County Council is expected to raise its Council Tax by 3.8%, the Police and Crime Commissioner to increase by 5.41% and Lancashire Combined Fire Authority by 5.57%. 

Altham Parish Council has set a separate precept requirement for its activities and has decided not to increase the Band D charge and will remain at £44.33 for 2026/27. The Parish Council will precept the Collection Fund for £14,141 for 2026/27.  Details of the proposed position on other Bandings for properties in Altham are shown in Appendix 6 of the report. 

The Council faces continued volatility around some of the most significant items within its Budget.  Major reforms of local government finance have transferred the risk of business rate revenues and Council Tax benefits to the Council.  The certainty on which the Council could budget and manage its finances has therefore decreased since 2013.  The Committee was informed of the importance of plotting any deviations away from the expected figures and taking appropriate action should these start to emerge, which could result in the need to reduce spending during the year.

However, Committee was informed that Cabinet intended to continue managing the Council’s affairs effectively and promoting appropriate service investment.  It would therefore: 

• Continue to limit enhancements on early retirement, continue a rigorous approach to absence management and commit to minimising borrowing costs. 
• The Capital Programme for 2026/27 would continue to deliver key investment in council and public facilities by adding another £7.86m to £56.51m the Council has already approved.
• A large proportion of the capital programme will be phased over the next few financial years which includes the delivery of £29m investment in the Huncoat Garden Village Project, with all the funding coming from Homes England, and finalising the Levelling Up works in Accrington Town Centre along with other complementing Town Centre regeneration. 
• To continue free car parking in Hyndburn.  
• Freezing green waste charges at £35 per annum and offering free bulky waste collections.
• Continuing efforts to reduce accommodation costs and actions to reduce carbon emissions and energy costs.

An addition to the programme in 2026/27 of £7.86m to include further investment of £689,000 in Parks and Plays areas, £1,359,906 for Disabled Facility Grants, £2,161,135 to maintain and invest in the Council’s operational assets and vehicle fleet, £165,000 to improve and develop ICT and technical equipment, £435,000 on Community Projects that involve War Memorial restoration, Christmas decoration replacement and Maiden Street Clock Towner lighting, £2,600,000 towards the future development of the Market Chambers building and £450,000 for the continued repurposing of Mercer Hall Leisure Centre and the contribution towards Accrington Stanley Community Trusts capital investment in sports initiatives.  

The Capital programme for 2026/27 is partly funded from the Governments grants to deliver a Pride in Place Impact Fund.  Hyndburn will receive £1.5m to be committed to projects that deliver visible improvement to community spaces; public spaces and high street and town centre revitalisation.

General reserve balances are expected to be just under £1.9m.

Due to Government reforms to Business Rates Funding of Local Government, the Council now carries a significant risk around the level of monies available. The calculation of available funds will be dependent on a number of factors and, as such, could be subject to variations of hundreds of thousands of pounds.  The volatility around these forecasts have increased due to the impact of recent national and global issues on the Business Community.

The following information was attached to the report, which had been submitted to Cabinet on 18^th February 2026:- 

·        Background to Revenue Budget 2026 -27

·        Medium Term Financial Strategy

·        Continuation Budget

·        Growth & Inflation Pressures

·        Available Resources

·        Resources Summary

·        Budget Proposal

·        Reserves

·        Risks & Management

·        Consultation

·        Conclusion

• Appendix 1 –   Initial Outline Budget 2026/27
• Appendix 2  -  Revenue Budget 2026/27
• Appendix 3  -  Budget Movements in Year 2026/27
• Appendix 4  -  HBC Tax Increase 2026/27 by Property Band
• Appendix 5  -  Estimated Overall Change in Council Tax 2026/27
• Appendix 6  -  Altham Parish Precept by Property Valuation Band 2026/27

Members raised the following questions:

·        What vacancy targets were set?

- Keeping the post vacant for three months

- Relocating staff from Broadway Office into Scaitcliffe House

·        What Bulky Waste collection savings were made

·        What’s happening with reserves

Responses were provided at the meeting.

Councils would continue to deliver their business as usual until reorganisation was complete, with being staff appointed to manage additional workloads where necessary.

Cabinet made the following recommendations to Council:

                                                  (1)   That there be no increase in Council Tax for 2026/27 with the charge for a Band D property remaining at £276.46.

(2)     That the Budget for 2026/27 will be £17,607,700 as detailed in Appendices 1 to 3 of the Revenue Budget 2026-2027 report, attached at Appendix A to the covering report.

(3)     That changes in budget requirement including through inflation, growth and savings identified in Appendix 3 of the Revenue Budget 2026-2027 report be approved, to ensure the Council could set and approve a balanced budget.

(4)     That the significant improvement made in relation to budget monitoring and cost reduction within the Authority over the past 20 years be noted and its commitment to continuing this approach in the year ahead be confirmed.

(5)     That during the financial year 2026/27, the Executive Director (Resources) be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) for technical reasons, such as the restructuring of cost centres, the re-apportionment and re-allocation of overheads etc., provided such amendments had an overall neutral impact on the Budget.

(6)     That during the financial year 2026/27, the Executive Director (Resources) be delegated responsibility to amend the Budget (following consultation with the Leader of the Council) should the estimate of Business Rates not be sufficiently accurate, by drawing on reserves if needed or paying over additional contributions to reserves.

(7)     That, to aid future financial management planning any surpluses generated during 2026/27 are set aside to help the Council reduce its cost base over the next three years, to support its long term capital programme or to strengthen its overall reserve position.

(8)     That any additional funds from Government that are not ring-fenced funding as well as any other surplus funds could be used if required to support Capital expenditure as determined by the Executive Director (Resources) in the overall financing of capital expenditure or be transferred to Reserves.

Resolved                               -  That the contents of the report be noted and supported.