Agenda item

The Board considered a report from the Director - Finance, which outlined a recommendation to Council in respect of the Budget, Capital Programme and Council Tax for 2026/27.

          The Medium Term Financial Strategy (MTFS), approved at the Executive Board meeting on 11 September 2025, had identified funding gaps of around £44.937m in 2026/27, £58.964m in 2027/28, £74.656m in 2028/29, £94.107m in 2029/30 and £118.613m in 2030/31. 

In terms of consultation, it was noted that the Council used various methods to listen to the views of the public, and Members own experiences through their Ward work was an important part of that process.  Individual consultations were taking place in respect of specific budget proposals and equality impact assessments would be completed where necessary.

The Board received regular reports detailing spending in the current year against the budget. The latest report indicated that spending was forecast to be over budget in the current year by approximately £1.281m against a net budget of £183.052m.

The proposed revenue budget for 2026/27 totalled £224.237m; the departmental analysis of this was shown in Appendix B.   A total of £5.158m of savings were proposed and were detailed in Appendix E.

Table B in the report demonstrated the Council position where it is unable to present a balanced 2026/27 budget without seeking Exceptional Financial Support (EFS) from Government. Receipts from Council Tax and Business Rates were insufficient to fund the forecast net spend for 2026/27. Table B forecast the Council would have to borrow £34.966m in 2026/27 to provide a balanced budget. On 18 December 2025, an application for EFS for the 2026/27 financial year was submitted to the Ministry of Housing, Communities and Local Government.

          The Board was advised that the proposed budget incorporated the grant figures announced in the Local Government Finance Settlement.  Several updates had been made to Halton’s Core Spending Power (CSP) at the Final Local Government Final Settlement.  Income received from the Mid-Mersey Business Rates Pool had now been included within Halton’s 2025/26 baseline funding position, which had increased the funding to be received in 2026/27 and 2027/28 from transitional arrangements.  A small uplift to the Homelessness, Rough Sleeping and Domestic Abuse Grant had been made to reflect new burdens arising from the Renters’ Rights Act.  Government had also announced a new Recovery Grant Uplift for authorities in receipt of Recovery Grant Funding that were due to see their CSP rise by less than the 17% national average over the three years covered by the Settlement.  These changes are worth an additional £3.5m, £3.7m, and £4.7m to Halton in 2026/27, 2027/28, and 2028/29 respectively. The report outlined the Government consultation on the Fair Funding Review and the impact of the review on Halton’s CSP.

Further information was also provided on Halton’s Council Tax, Parish precepts, Police, Fire and Liverpool City Region (LCR) Mayor precepts, Business Rates, the Capital Programme, Prudential Code, School Budgets, Dedicated Schools Grant position, adequacy of reserves and exceptional financial support.

The Board acknowledged the support of the Member of Parliament for Halton and Halewood, Derek Twigg who had lobbied the Government on behalf of the Council in respect of the Local Government Finance Settlement.

On behalf of the Board the Portfolio Holder for Corporate Services thanked the Council Finance team for their work in preparing the Budget document.

Reason(s) for Decision

To seek approval for the Council’s revenue budget, capital programme and council tax for 2026/27.

Alternative Options Considered and Rejected

A number of alternative budget proposals have been considered by the Budget Working Group.

Implementation Date

12 February 2026.

RESOLVED:  That Council be recommended

1)    to adopt the resolution set out in Appendix A, which includes setting the budget at £224.237m, the Council Tax requirement of £71.959m (before Parish, Police, Fire and LCR Combined Authority precepts) and the Band D Council Tax for Halton of £1,938.81;

2)    to approve the capital programme set out in Appendix D;

3)    to approve the budget savings set out in Appendix E.