Subject:
General Fund Draft Budget and Resources Update – 2026-27 to
2029-30
Date of
meeting: 27 January 2026
Report
of:
Cabinet Member for Finance and City
Regeneration
Lead
Officer:
Name: Chief Finance Officer
Contact
Officers: Name: John Hooton, Haley
Woollard
Email: john.hooton@brighton-hove.gov.uk
haley.woollard@brighton-hove.gov.uk
Ward(s)
affected: All
For general
release
1
Purpose of Report & Policy Context
1.1
This report provides Audit, Standards and General Purposes
Committee an update on the budget planning process for the 2026/27
annual budget and Council Tax setting process together with Medium
Term Financial Plan projections over the next 4-year period.
Cabinet received a draft budget report in December, which is
included as an appendix to this report.
1.2
The draft budget report has been taken to People and Place
Scrutiny Committees in January 2026, and their remit is to
scrutinise specific budget proposals as they relate to the People
and Place Scrutiny Committee remits. The Audit, Standards and
General Purposes Committee remit includes considering whether the
council has put in place proper arrangements to secure economy,
efficiency and effectiveness in its use of resources, whether the
Council ensuring sound budget management and whether the Council is
putting on place steps to secure long term financial
sustainability.
2
Recommendations:
That Audit,
Standards and General Purposes Committee:
2.1
Note the draft budget report
set out in Appendix 1 to this report; and
2.2
Comment on the draft budget
report, specifically in respect of the Council’s arrangements
to secure economy, efficiency and effectiveness, putting in place
sound budget management and ensuring the long term financial
sustainability of the organisation.
3
Context and Background Information
3.1
The General Fund Budget &
Resources update to December Cabinet outlined that the context for
budget setting remains very challenging. There are significant
budget pressures arising from increases in demand from statutory
services, particularly temporary accommodation, adults and
children’s placements, and home to school transport.
Compounding this, the government’s review of the allocation
of local government resources under the Fair Funding Review,
coupled with the Business Rates Reset, has resulted in the
council’s core spending power increasing more slowly than the
assumptions within the MTFS, resulting in lower resources than
previously anticipated.
3.2
The Council must set a balanced
budget each year for the financial year ahead. It is also important
that the Council sets a medium term financial strategy that
balances the budget over the medium term for a number of reasons,
primarily as follows:
·
It enables the Council to plan
ahead and ensure that savings proposals are fully developed and
implemented before the financial year begins;
·
It enables the Council to focus
on preventative activity to reduce demand for statutory services,
which can take time, but ultimately will deliver better outcomes
for residents; and
·
It enables the Council to focus
on transformational work, such as investing in digital technology
to improve the efficiency of services, or reduce the costs of
operational assets.
3.3
The draft budget report sets
out proposals that close the gap from 2026 to 2030 by approximately
50%. The final budget report will need to ensure that further
proposals are included that close the remainder of this
gap.
3.4
Additional savings proposals
are being developed in line with the Council’s transformation
programme, focusing in particular on the following:
·
Reducing the cost and demand for statutory services –
in particular adults social care, children’s social care and
emergency and temporary accommodation; and
·
Transforming the organisation – improving
productivity through digital innovation, rationalising our use of
assets, increasing income through greater commercialisation of
services and savings through better procurement and contract
management.
3.5
A comprehensive medium term
financial strategy underpinned by the Council’s
transformation programme, will be recommended to Cabinet for
approval in February.
3.6
The timetable for concluding
the budget process is as follows:
|
Date
|
Event
|
Update
|
|
3 Dec
2025
|
Publication
|
Completed
|
|
11 Dec
2025
|
Cabinet
|
Completed
|
|
Dec to
early-Jan
|
Development of
further budget proposals
|
The provisional
local government settlement was received in December. Further
budget proposals are being drafted for February Cabinet.
|
|
w/c 15
Dec
|
Provisional Local
Government Financial Settlement
|
The provisional
LGFS has been received. This was broadly in line with the
assumptions set out in the December report, with a slight adverse
movement from these assumptions.
|
|
Jan
2026
|
CFO/HR/Unions
|
Further union
meetings are scheduled for the end of January.
|
|
19 Jan
2026
|
Joint Overview
and Scrutiny committee
|
This will have
been completed by the time of the Audit and Standards
Committee.
|
|
22 Jan
2026
|
Cabinet
|
Council Tax Base
report published for Cabinet in January.
|
|
By 3 Feb
2026
|
Department
Consultative Group’s
|
Sharing overall
final budget package and staffing impacts (assuming publication on
4 Feb)
|
|
4 Feb
2026
|
Publication
|
Publication of
Final Budget proposals on the council’s web site
|
|
12 Feb
2026
|
Cabinet
|
General Fund and
HRA Revenue & Capital Budget reports;
TBM month 9
report.
|
|
26 Feb
2026
|
Budget
Council
|
General Fund and
HRA Revenue & Capital Budget reports.
|
4
Financial
Implications:
4.1
The financial implications are
contained in the body and appendices of this report.
Finance Officer consulted: Haley Woollard
Date: 15/01/2026
5
Legal Implications:
5.1
The legal implications are
contained within the body and appendices of this
report.
Lawyer consulted: Elizabeth
Culbert
Date: 19/01/26
6
Risk Implications
6.1
As set out in the appendix to
this report.
7
Equalities
Implications:
7.1
As set out in the appendix to
this report.
8
Sustainability
Implications
8.1
As set out in the appendix to
this report.
9
Health and Well-being
Implications
9.1
As set out in the appendix to
this report.
10
Conclusion
6
7
8
9
10.1
The council is under a statutory duty to set its budget and council
tax before 11 March each year. The current set of budget proposals
do not fully address the Budget Gap in either 2026/27 or across the
MTFS, and therefore further options are being explored for the
February report. This report provides Audit, Standards and General
Purposes Committee an opportunity to scrutinise the Council’s
approach to ensuring it manages long term financial sustainability
and secures good value for money in delivering services for
residents.
SUPPORTING
DOCUMENTATION
Appendices:
1.
Budget report to
Cabinet, December 2025.