The Cabinet Member for Strategic Growth presented a report that sets out key elements of budget proposals. It makes available the latest financial information that will underpin the budget and MTFS and
Councillor Bernstein thanked the Finance Director and Councillor Thorpe for the briefings over the last few months around the budget. He sought reassurance whether Q3 was likely to increase the need to go into reserves and how challenging it would be to some of the political issues. He questioned whether there would be an argument that if we had chosen to do something about the real living wage, the call on reserves would be significantly less.
Councillor Thorpe responded that participating in real living wage is the morally right thing to do. Whilst these are some of the least paid people in our economy, we rely on them heavily for some important work. If we lost these staff wouldn’t be able to look after some of the most vulnerable residents in the Borough. Councillor Thorpe assured Councillor Bernstein that nothing is off the table, and we will consider all the options.
Councillor Mike Smith queried whether the efficiencies being looked at were a short term fix. Is it more realistic that a whole rethink needs to be had about how councils are financed?
Councillor Thorpe responded that around 70% of the council’s budget goes on statutory services in adult and children’s social care. Demand is not abating and unlikely to do so at any point in the future. Plan over next few years is to review services to ensure they are more efficient. There is a case for reforming the system and the government have already reviewed the settlement provided for councils. Government yesterday announced additional funding for SEND for all Local Authorities.
Councillor Mike Smith queried the increase in income around EV cross pavement charges and what they are?
Councillor Thorpe advised that this was essentially setting a channel in pavements. It is being trialled in councils across both Manchester and nationally.
Councillor O’Brien confirmed that options are being explored and we will wait to see the outcomes of these trials.
Councillor Bernstein questioned the overspend in Q2 and whether this was likely to increase or reduce?
Councillor Thorpe confirmed that pressures aren’t abating. Neil Kissock, Director of Finance confirmed we are not in a position to discuss Q3 at the present time. An update will be provided to the March cabinet meeting.
Councillor Bernstein observed that there had been lots of debate about housing developments and when we look at council tax income, it is significantly less than all other Local Authorities. Additional properties will help to increase the income to the council
Councillor Thorpe confirmed this was a good point. There will be challenges in next 2-3 years. Need to maintain sustainability.
Councillor O’Brien remarked that if the council had developed homes at the level to meet the demand over the last decade, it would have had the benefit of supporting council tax income and local economies.
Decision:
Cabinet:
1. Approved the Medium-Term Financial Strategy to 2028/29 and the assumptions regarding resources and spending requirements.
2. Approved the Council Tax base for Bury Council for 2026/27 of 58,709.94 Band D equivalent dwellings, this is the basis on which the Council Tax funding has been calculated (Appendix 1).
3. Approved the net revenue budget of £252.135m for 2026/27.
4. Approved the Council Tax requirement of £124.224m and the increase in Council Tax in 2026/27 of 2.99% in terms of General Council Tax and a further 2% for the Adult Social Care precept for 2026/27 (Appendix 1).
5. Approved the budget assumptions of £29.364m in 2026/27.
6. Approved new revenue budget proposal relating to additional Place Directorate income to be achieved across 3 areas: car parking, moving vehicle offences and EV cross pavement fees. Delivery plans will be brought forward for consideration by Cabinet in the new financial year, including the detail of any specific consultation exercises that
7. may be required to be undertaken. The consultation outcomes will be considered by Cabinet before implementation along with any financial implications adopted in the 2027/28 budget proposed by Cabinet to Council.
8. Noted the remaining budget gap of £21.155m over the medium-term to 2028/29.
9. Approved the use of £3.977m of reserves from the budget stabilisation reserve for 2026/27.
10. Noted the forecast position on reserves over the medium-term to 2028/29.
11. Approved the recommendations set out in the Treasury Management Strategy (Appendix 2):
i. To approve the Treasury Management Strategy including the associated Prudential Indicators and Annual Investment Strategy.
ii. To approve the Treasury Management Policy Statement.
iii. To approve the Minimum Revenue Provision (MRP) Policy Statement.
12. Approve the Capital Strategy and the Programme for 2026/27 – 2028/29 (Appendix 3).
· Cabinet to recommend and council to approve the use of £2m flexible use of capital receipts in 2026/27. 23.
13. Approved the Dedicated Schools Grant budget for 2026/27 at £257.345m and approved the allocations between the four funding blocks as set out in Appendix 4 of this report.
i. The Schools and Academies 2026/27 funding unit values as recommended by Schools Forum and detailed at Annex 1 to appendix 4.
ii. Approve the 2026/27 hourly rates for all early year’s providers as follows: i.
14. £5.77 per hour for 3- and 4-year-olds. ii. £8.35 per hour for 2-year-olds. iii. £11.30 per hour for under 2’s. 24. Note the Equality Impact Assessment for the budget report (Appendix 5).
15. Noted the Chief Finance Officer (Director of Finance) statement on the robustness of estimates and adequacy of financial reserves in setting the budget (Appendix 6).
Reasons for decisions:
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 2026/27 budget and medium term is for an ongoing 4.99% annual Council Tax increase (2.99% general precept and 2% adult social care precept). The government’s Core Spending Power calculations include the assumption that Councils will increase the Council Tax by these percentages.
· An alternative option could be made to increase its ‘relevant basic amount of council tax’ above the levels set out in the Provisional 2026/27 Local Government Finance Settlement published in December 2025 of 4.99%, 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.£1.242m