Agenda item

Reasons for recommendations

It is a statutory requirement to set the budget each year. To enable the Council to set a balanced budget.

Background papers

Budget reports and briefings, precepts (NCC, Police and Parishes)

Draft Revenue Budget Report for 2026/27 presented to Cabinet on 2 February 2026

Wards affected

All

Cabinet member(s)

Cllr Lucy Shires

Contact Officer

Don McCallum

Director of Resources and s151 Officer

Don.McCallum@north-norfolk.gov.uk

Executive Summary

This report presents for approval the budget for 2026/27 and to make statutory calculations in accordance with the Local Government Finance Act 1992 to set the Council Tax for 2026/27. The report also includes the Chief Finance Officer’s report on the robustness of the estimates and adequacy of reserves.

It is worth noting that this budget has been prepared based on the draft Local Government Finance Settlement. Due to report publishing timing constraints, it was not possible to update all underlying financial reports in time for the Full Council on 18 February 2026. However, extensive analysis has been undertaken comparing the draft Local Government Finance Settlement funding to the final Local Government Finance Settlement with the only difference being an additional £1,225 being received through the settlement for the 2026/2027 budget compared to the draft position.

Options considered.

It is a statutory requirement to set the budget each year, whilst there are options around the content of the budget presented for approval, the budget now recommended reflects the recommendations made by Cabinet at its meeting on 2 February 2026.

Consultation(s)

The Overview and Scrutiny Committee have reviewed items within the draft budget papers on 28 January 2026 and will have the opportunity to review this report at its meeting on 11 February 2026.

Public and business consultations have also taken place on the Council’s website and on all the Council’s other social media platforms.

Recommendations

That having considered the Chief Finance Officer’s report on the robustness of the estimates and the adequacy of the proposed financial reserves, the following be approved:

1.     The 2026/27 revenue budget as outlined at Appendix A;

2.     The service budgets detailed in Appendix B;

3.     The statement of the movement in reserves as detailed at Appendix C, including;

3.1.  To approve the use of the Communities reserve to fund a revenue budget of £4,000 per Member to allow the award of small local grants.

3.2.  To approve the creation of an £0.75m Ear Marked Reserve to mitigate the Revenue costs of Local Government Reorganisation.

4.     The updated Capital Programme and financing for 2026/27 to 2028/29 as shown in Appendix D;

5.     The new capital bids recommended for approval as detailed at Appendix E;

6.     That Members note the current financial projections for the period 2026/27 to 2029/30 that form the Medium Term Financial Strategy as presented as a Cabinet recommendation from its meeting on 2 February 2026;

7.     That the minimum Level of the General Fund Reserve of £2.1m for 2026/27 to 2027/28;

8.     The Local Council Tax Support Scheme (LCTS) for 2026/27 as set out in paragraphs 3.18 to 3.19;

9.     That Members undertake the Council Tax and statutory calculations set out at Appendix F, and set the Council Tax for 2026/27;

10.  The demand on the Collection Fund for 2026/27 is as follows:

·       £8,285,376 for District purposes which reflects the recommended Council Tax increase of 2.96% (£5.13) for the district element for a Band D equivalent property

·       £4,318,242 for Parish/Town Precepts,