Decision details

RESOLVED:

That Cabinet recommend to Council that:

1.     the updated Medium Term Financial Plan (MTFP) and financial strategy, as set out in the report and throughout appendices 1-3 be approved.

2.     there is a General Fund Net Budget Requirement in 2026/27 of £26.630 million, as set out in appendices 5a - 5d of the report;

3.     the New Forest District Council Band D Council Tax for 2026/27 shall be £211.92 (paragraph 37);

4.     the General Fund Capital Programme for 2026/27 of £14.646 million, as set out in appendix 6 to this report be approved; and

5.     the proposed fees and charges as included at appendix 7 to the report be approved.

KEY DECISION:

Report to Cabinet and Council.

PORTFOLIO:

Finance and Corporate

ALTERNATIVE OPTIONS CONSIDERED/REJECTED:

As set out in the report.

DECLARATIONS OF INTEREST:

None.

DISCUSSION:

The Portfolio Holder for Finance and Corporate introduced the report. He explained that the Council had produced a balanced budget for 2026/2027. He congratulated the hard work that had gone into the budget, though acknowledged the challenges facing the Council with a medium-term financial gap of £3.4 million. The Council was running a Capital Programme for 2026/27 of £14.646 million which would enable the Council to  deliver a range of projects across the district. He commented on the detrimental impact that the Government’s ‘Fair Funding’ Review had on the Council’s finances.  Despite promises of new burdens funding to support food waste collection, the Council was going to receive £1.2 million less funding than it received now. 

The Portfolio Holder confirmed that council tax would increase by 2.99%, with District Council tax increasing by £211.92 for a band D dwelling, which equated to an increase of £3.95 a week. 

Cabinet heard that the extended producer’s responsibility funding was increasing to £2.4 million. The Council aligned its budgets with the corporate priorities with, among other things, focus on the new waste service, public conveniences refurbishments and a new Council ICT service.  

The Assistant Director of Finance explained that the Council had a balanced General Fund budget for 2026/27 including a net budget requirement of £26.6 million. This had been achieved without the need to use the budget equalisation reserve; however, the medium-term forecast did identify a £3.4 million deficit. The Government’s Fair Funding review had disproportionately affected rural and District councils, with a reduction in funding of £1.2 million over the settlement period. Grant simplification has rolled up several previously discreet grants into the overall revenue support grant contributing to the overall reduction, additionally the Council had not received the previously assumed £1.5 million food waste funding reductions. Council tax had been increased by 2.99% in line with Government limits.  Within the budget there had been service investment across the Council’s key priorities with enhancement in several service areas and resources provided for the LGR process.  

It was explained that there was additional income through the extra £1.3 million EPR money as well as an additional £1.9 million from fees and charges, contractual income growth and positive movement on the pension contributions made by the Council. Cabinet was reminded that the budget also contained the £14.6 million Capital Programme. Appendix 5b required a minor presentational adjustment to align with Appendix 5a. 

A non-executive member commented on this being NFDC’s final budget prior to the LGR Structural Change Order and wider oversight, acknowledging the service investments made by the Council and referring to the level of car parking charges. 

The Portfolio Holder for Finance and Corporate explained that the Council undertook a reset of its car parking charges to align with comparable charges in other areas seeing subsequent increases in line with inflation.