Decision - General Fund Budget Planning & Resource Update - 2026-27 to 2029-30

This report seeks agreement on the Budget assumptions and budget setting process for 2026/27

That Cabinet: 1) Note the planning assumption of a Council Tax increase of 2.99% over the 4-year Medium-Term Financial Plan period and an Adult Social Care Precept of 2.00% or the equivalent in grant funding in 2026/27. 2) Note the funding assumptions and net expenditure projections for 2026/27 including a projected budget shortfall of £39.765 million. 3) Note the Medium-Term financial projections for 2026/27 to 2029/30 and the predicted budget gaps totalling over £95 million over the period. 4) Agree the proposed budget development approach and that members will use this to develop 4-year medium-term service and financial plans and proposals for Budget Council consideration, including savings targets, to enable a legally balanced budget in 2026/27 and enable the Council Tax for the year to be set. 5) Note that projections for next year and the Medium-Term Financial Plan (MTFP) will be updated following government funding announcements expected in Autumn 2025.

Cabinet considered Brighton & Hove City Council’s financial planning assumptions for 2026/27 to 2029/30, including a projected £39.765 million budget shortfall in 2026/27 and cumulative predicted gaps of £95.158 million over four years. It agreed the proposed budget development approach, including the preparation of savings and transformation plans, while noting that projections will be updated after government funding announcements.