Decision details

The Deputy Leader and Cabinet Member for Finance and Transformation presented a report which presented the updated budget position for 2026/27, informed Members of the updated budget gap of £16.000m for 2026/27, presented a draft set of budget proposals and the remaining budget gap, informed members of the forecast reserves position over the three years 2026/27 to 2028/29, and set out the 2026/27 budget setting process ahead of Budget Council on 25 February 2026. Members thanked officers in the Finance Team and across departments for their work in developing these proposals, as well as Cabinet Members for leading on their portfolio areas. It was noted that a one-year MTFS was proposed until more detail was available regarding the Fairer Funding review, and that consultation would begin on 4^th December.

In response to Members’ questions it was noted that the zero base budgeting exercise had been valuable in identifying efficiencies and therefore securing savings that would not impact residents. Even when a service was changing, e.g. Adult Care, proposals included changing service provision in order to retain or improve the standard of care. Some fees and charges would increase, but these would be in-line with financial assessments and were increasing from a historically low base. It was noted that the delivery plan would provide greater detail on any expected impact, and where noticeable impact on a group or a service was anticipated, a specific consultation would be held around that issue.

With regards to collaboration with other boroughs, this would be done where appropriate. School transport was an area with possibilities for an efficient and equitable shared service but was complex to develop, and it was important for other local issues to secure Bury-specific solutions. It was noted that a benchmarking exercise would be undertaken to see how Bury compared with other boroughs.

Decision:

Cabinet:

1.    Approved the set of draft revenue budget proposals totalling £14.577m for inclusion in the Cabinet proposals for the setting of the 2026/27 revenue budget to be considered by Council on 25 February 2026;

2.    Approved consultation on draft budget proposals between 4th December to 19th January 2026;

3.    Noted that the outcomes of the budget consultation will be reported back to Members and used to inform the budget setting proposals and referred to Overview & Scrutiny Committee for their consideration;

4.    Noted the remaining budget gap of £7.547m for 2026/27 with further budget proposals to be presented to Cabinet in January 2026; and

5.    Noted the forecast reserves balance for 2026/27.

Reasons for the decision:

The Council has a legal requirement annually to set a balanced budget and Council Tax and where necessary undertake consultation with the public, businesses, stakeholders and internally with staff and through Overview & Scrutiny Committee.

Alternative options considered and rejected:

·       The current assumption within the MTFS is for an on-going 4.99% annual Council Tax increase (2.99% general precept and 2% adult social care precept). An alternative option could be made to increase its ‘relevant basic amount of council tax’ above the levels that will be set out in the 2026/27 Local Government Finance Settlement published later in the year, but this would require holding a local referendum and a majority vote. A 1% increase or decrease in Council Tax is the equivalent to c£1.27m.