Agenda item

This report fulfils the statutory requirement to agree a budget for 2026/27, comprising both revenue and capital expenditure plans, and to set a council tax for the year.The Council Tax recommendation as supported by Financial Strategy Advisory Group is for an increase of £6.93 per annum (Band D property), an equivalent increase of 2.98%, taking Band D rate to £239.85.

The Council gave consideration to its 2026/27 budget, comprising both revenue and capital expenditure plans and Council Tax amounts for each band of dwelling.  The report took account of the recommendations of the Community & Wellbeing, Environment, Licensing and Planning Policy and Strategy & Resources Committees (appertaining to fees and charges, the revenue budget and capital programme).

The Mayor informed the Council that a correction to the table included at Recommendation 1.7 of the report had been published prior to the meeting.

In moving the recommendations of the report, the Chair of the Strategy and Resources Committee, Councillor Neil Dallen, made a statement to the Council on the budget for 2025/26 and informed the Council of the following corrections to the report:

·       Recommendation 1.6.3 (page 16 of the agenda pack) – the wording “£8,174,856 being the amount by which the aggregate at 1.5.1above” is corrected to: “£8,174,856 being the amount by which the aggregate at 1.6.1above”

·       Recommendation 1.6.4 (page 16 of the agenda pack) - the wording “£239.85 being the amount at 1.5.3” is corrected to “£239.85 being the amount at 1.6.3”

·       Table 12.8 (page 28 of the agenda pack) - the 2^nd subtotal, should read “Subtotal - Reserves Unavailable for general use”, corrected from the wording “Available for general use”.

In response, Councillors Kate Chinn, James Lawrence, Kieran Persand and Alex Coley spoke on behalf of their respective political groups.

An amendment to the report was MOVED by Councillor James Lawrence and SECONDED by Councillor Alex Coley. The proposed amendment was as follows:

Additional recommendation:

“Transfer all non-earmarked funds allocated for priorities 2, 3, 5 and 6 from the Strategic Priorities Reserve to the General Fund Working Balance.?”

The amendment was not accepted by the proposer of the original motion and accordingly was debated by the Council. Upon being put to the vote the amendment was LOST with 10 votes for, 19 votes against and the Mayor not voting.

An amendment to the report was MOVED by Councillor Alex Coley and SECONDED by Councillor James Lawrence. The proposed amendment was as follows:

Additional recommendation:

“That the minimum balance on the capital receipts reserve is removed and £1m of the reserve funds be used to fund the Bourne Hall heating & ventilation capital project, as recommended by FSAG.”

The amendment was not accepted by the proposer of the original motion and accordingly was debated by the Council. Upon being put to the vote the amendment was LOST with 10 votes for, 19 votes against and the Mayor not voting.

?Upon being put, the motion to agree the recommendations of the report was CARRIED, as detailed below.

Accordingly, it was resolved:

With 19 votes for, 6 votes against, 4 abstentions and the Mayor not voting:

1.1 The Revenue estimates for 2026/27 (as included in Section 8 and  Appendix 2).

1.2 The Capital programme for 2026/27 and the provisional programme for 2027/28 to 2030/31, as summarised in the capital strategy statement (as included in Section 12 and Appendix 9 of the report).

1.3 That it be noted that, under delegated powers, the Chief Finance  Officer calculated the amount of the Council Tax Base as 34,083.20 (Band ‘D’ equivalent properties) for the year 2026/27, in accordance with the Local Government Finance Act 1992, as amended (the “Act”). (as attached at Appendix 4 of the report).

1.4 That the fees and charges recommended by the policy committees be approved for 2026/27 as attached in appendix 14 to the report.

1.5 That the Council Tax Requirement for the Council’s own purposes for 2026/27 is £8,174,856 as attached in Appendix 4 to the report.

1.6 That the following amounts be calculated for the year 2026/27 in accordance with sections 31 to 36 of the Act:

1.6.1 £61,895,893 being the aggregate of the amounts which the Council estimates for the items set out in section 31A(2) of the Act.

1.6.2 £53,721,037 being the aggregate of the amounts which the Council estimates for the items set out in section 31A(3) of the Act.

1.6.3 £8,174,856 being the amount by which the aggregate at 1.6.1above exceeds the aggregate at 1.6.3 above, calculated by the Council, in accordance with section 31A(4) of the Act, as its council tax requirement for the year.

1.6.4 £239.85 being the amount at 1.6.3 above divided by the amount at 1.3 above, calculated by the Council, in accordance with section 31(B) of the Act, as the basic amount of its council tax for the year.

1.7 To note that Surrey County Council and Surrey Police Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

With 19 votes for, 10 votes against and the Mayor not voting:

1.8 That the Council, in accordance with Section 30 to 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables above as the amounts of council tax for 2026/27 for each of the categories of dwellings.

With 19 votes for, 6 votes against, 4 abstentions and the Mayor not voting:

1.9 That members note the delay in receiving the final precept information from Surrey Police, expected at the end of February, and delegate authority to finalise the Budget Book and to make any amendments to the Council Tax demands as might prove necessary as the result of changes to the estimated demands issued by preceptors on the Council’s Collection Fund to the Director of Corporate Services (Section 151 officer), once this information has been received.

1.10 That the Council agrees the Treasury Management and Investment

Strategy and prudential indicators and authorised limits for 2026/27

as set out in Appendix 10 including:

1.10.1 Affordability prudential indicators;

1.10.2 The actual and estimated Capital Financing Requirement;

1.10.3 The estimated levels of borrowing and investment;

1.10.4 The authorised and operational limits for external debt;

1.10.5 The liability benchmark;

1.10.6 The treasury management prudential indicators.

1.11 That the Council receives the budget risk assessment at Appendix 11 to the report and notes the conclusion of the Chief Finance Officer in Appendix 12 to the report that these budget proposals are robust and sustainable as concluded in the report.

1.12 That the Council receives the Chief Finance Officer Statement on the Reserves as attached at Appendix 12 to the report.

With 19 votes for, 10 votes against and the Mayor not voting:

1.13 Council approves the annual indexation of Councillors Basic and Special Responsibility Allowances in line with the ‘cost of living’ percentage increase in staff salaries for the 2026-27 financial year.

With 19 votes for, 6 votes against, 4 abstentions and the Mayor not voting:

1.14 Approve the recommended changes to how Council Tax is levied on Empty properties, as set out in Appendix 13 to the report, with effect from 1 April 2026.

1.15 Approve the recommended changes to how Council Tax is levied on Second Homes in the Borough, as set out in Appendix 13 to the report, with effect from 1 April 2027.