Budget discussions for 2027/28

Budget discussions for 2027/28

The 2027/28 budget and the Medium-Term Financial Strategy 2027/28 to 2029/30 will be discussed by Cabinet next week.

Cabinet will also discuss the 2026/27 Quarter 2 budget management report, which shows some improvement since the Quarter 1 report. There is still currently a £13.6m overspend at this stage of the financial year, with work ongoing throughout the council to assess risks and pressures and provide further in-year savings opportunities.

In the budget report, it states there is an £11m budget gap for 2027/28, rising to £18m over the medium term. If the 2026/27 overspend is not addressed, it will deplete the reserves and add pressure to the 2027/28 budget. The council is also reviewing the budget growth needed in Children's Services to address underlying demand pressures in future years.

Significant progress has been made in identifying savings, and proposals identified so far contribute to the 2027/28 budget gap by £8m. This is on top of the existing transformation programme, which is intended to generate up to £32.8m of savings from now until 2028/29.

Some of the early potential options, which are subject to change, are listed below.

Cabinet is recommended to approve the draft savings proposals for the purpose of engagement activity, which will take place to inform the final budget report in February.

Councillor Ejaz Ahmed, lead member for corporate resources, said: “The initial budget proposals for 2027/28 show the scale of the challenge we are managing, particularly around adult social care, temporary accommodation and children’s services, alongside wider cost pressures.

“As a council in recovery and intervention, our objective remains to end our reliance on Exceptional Financial Support and put the council on a more financially sustainable footing. The improvement in the current-year position is welcome, but we still have a lot of work to do.

“Before the final budget is set in February, we will continue to look at how services can be delivered more efficiently, secure better value from contracts and spending, review fees and charges where appropriate, and progress our agreed asset disposal programme. The draft proposals will also give residents and stakeholders an opportunity to contribute before final decisions are made.”

The level of council tax will be agreed at Cabinet in February, where the final budget will be set.  

The Cabinet meeting is on Monday 16 November. Read the meeting papers online.