Agenda item

Appendix T(b) to the report contains exempt information during which the public is likely to be excluded from the meeting subject to determination by Full Council following consideration of a public interest test. This exclusion would be made under paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

The Executive presented its budget recommendations as set out in the Council Agenda and published on the City Council’s website.

 

Councillor Bick and Liberal Democrat Group Members presented the Liberal Democrat Group’s alternative budget as set out in the Council Agenda and published on the City Council’s website.

 

Councillor Bennett and Green Group Members presented the Green Group’s alternative budget as set out in the Council Agenda and published on the City Council’s website.

 

Councillor Payne joined the meeting before debate started on the budget.

 

Members agreed nem con to extend the meeting past the 3 hour guillotine.

 

Under the Council’s budget procedure, the Liberal Democrat Group’s alternative budget was deemed to have been moved and seconded as an amendment.

 

Under the Council’s budget procedure, the Green Group’s alternative budget was deemed to have been moved and seconded as an amendment.

 

The Liberal Democrat Group’s alternative budget amendment was lost by 15 votes to 22 with 1 abstention.

 

The Green Group’s alternative budget amendment was lost by 5 votes to 22 with 11 abstentions.

 

Councillor Glasberg left the meeting and did not return.

 

The Liberal Democrat Group requested the recommendations below were voted on separately to the rest of the Budget Setting recommendations contained on pages 41-45 of the Council agenda. This included the HRA components of recommendations L, Q, R and S.

 

Housing rents and charges:

c) Approve an increase in rents for all Social Rent, Social Rent shared

ownership and Affordable Rent properties of 4.8% (September 2025

CPI plus 1%), with effect from 1 April 2026.

 

d) Agree to fully implement rent convergence for all Social Rent

tenants at a maximum rate of £1 per week from 1 April 2027, then

£2 per week from 1 April 2028, in line with recent government

announcements, for a period of up to 10 years.

 

e) Approve an increase in rents for Affordable Rent shared ownership

properties in line with the maximum permitted in each individual

property lease (generally RPI plus 0.5%).

 

f) Approve that garage and parking space charges are increased by up to 4.8%, as set out at section 10 of the Budget Setting Report

2026/27.

 

g) Approve the methodology for calculating Housing Revenue Account

service charges and leasehold administration costs as set out at

Appendix K, and delegates authority to the Chief Finance Officer to

carry out the detailed calculation of 2026/27 charges in line with this

methodology, noting that the council will endeavour to limit increases to 4.8% where possible.

 

Revenue budgets:

i)    Approve the Housing Revenue Account revenue proposals shown at Appendix H.

 

Capital budgets:

k) Approve the Housing Revenue Account capital proposals set out at Appendix I(a) and the revised capital plan set out at Appendix I(b).

 

(Housing Revenue Account element of recommendation L only to be voted on with this vote)

l) Approve the proposed capital financing plans set out at section 5 (General Fund) and section 7 (Housing Revenue Account) of the Budget Setting Report 2026/27, whilst noting that the constitution delegates all executive decisions on borrowing, investment or financing to the Chief Finance Officer, who is required to act in accordance with CIPFA’s Code of Practice for Treasury Management in Local Authorities.

 

m) Note in particular that the council’s ambitious Housing Revenue Account investment programme, including the 10-year new homes programme, will require new borrowing of around £483 million over the next 10 years, as set out at section 7 of the Budget Setting Report 2026/27.

 

Risks and reserves:

(Housing Revenue Account element of recommendation Q only to be voted on with this vote)

q) Set the 2026/27 prudent minimum balance at £8.059 million for the General Fund, and £6.801 million for the Housing Revenue Account, with a working target balance of 120% of the prudent minimum balance in each case, in line with the advice of the Chief Finance Officer.

 

Medium-Term Financial Strategy:

(Housing Revenue Account element of recommendation R & S only to be voted on with this vote)

r) Approve the council’s Medium-Term Financial Strategy for the General Fund and Housing Revenue Account as set out at section 9 of the Budget Setting Report 2026/27.

 

 s) Note the key assumptions used in the development of the Medium-Term Financial Strategy at Appendix C, and in particular the sensitivity of the Housing Revenue Account 30-Year Business Plan to changes in these assumptions, as set out in detail at Appendix J.

 

It was RESOLVED to agree the Executive’s budget proposals C-S (contained on pages 41-45 of the Council agenda including HRA components of recommendations L, Q, R and S) by 36 votes to 1.

 

Councillor Bennett left the meeting and did not return.

 

It was RESOLVED to agree the remaining Executive’s budget proposals by 22 votes to 1 with 13 abstentions.