Agenda item

Members considered the final budget proposals and estimates for 2026/2027 for the General Fund.

 

It was proposed, seconded and AGREED that Standing Order 11.5 would be suspended for the Leader of the Council in order that he could speak for longer than five minutes when introducing the report.

 

In proposing the report, the Leader of the Council gave a presentation and linked the Corporate Plan priorities to the Budget Proposals:

 

1.    Connecting Communities

-       Communities were connected in several ways. There had been several flag raisings at SK House, Grantham over the course of the year, including Merchant Navy Day, Pride, Armed Forces Day, Emergency Services Day. Lincolnshire Day, anniversary of the invasion of Ukraine, and Tamil celebrations.

-       Art was another way of bringing the community together. An art project known as the ‘Whale’ had visited all four towns.

-       It was almost 300 years since the birth of Sir Isaac Newton. The council aimed to deliver a community festival. For this, £20,000 was ringfenced within the Events Budget; however, this money may become available via the year’s financial underspend.

-       Major budget increases were planned for an Events Officer post, Community Grants (£100,000), Safer Streets patrols (£41,494) and Safer Streets CCTV cover.

 

2.    Sustainable South Kesteven

-       This priority included areas such as Parks, Trees, Culture and Waste.

-       Leisure Centres in Bourne, Grantham and Stamford were facing cost pressures. However, gratitude was expressed to the Board of Leisure SK Limited for their work in this area.

-       The Environmental Crime Partnership had been shortlisted for an award at the Local Government Chronicle Awards.

-       Solar panels were in place on roofs at Grantham Meres Leisure Centre and the new depot at Turnpike Close. There were other energy saving measures in place, which helped to future proof these buildings.

-       Major budget increases were planned for tree planting for SKDC open spaces (£62,000), tree maintenance for SKDC open spaces (£66,150). Vehicle replacement (£1,046,000), wheelie bin replacement (£155,000). EV charging points (£55,000) and mobile CCTV cameras (£10,000).

 

3.    Enabling Economic Opportunity

-       Investment in South Kesteven was happening. It was also a great place to visit to see some wonderful stately homes.

-       Markets in Grantham and Stamford were thriving; there were plans to assist Bourne with their market.

-       Major budget increases were planned for an Events Officer post, the events budget (£100,000, to include Newton 300 preparations), town centre vitality and viability (£20,000), Citizens Advice South Lincolnshire (£33,000), car park improvements (£120,000), Wharf Road car park refurbishment (£650,000) and additional apprenticeships (£100,000).

 

4.    Housing

-       The 21-home development at Swinegate, Grantham was award winning and a great place to live.

-       External funding would be secured to assist with the development of South Kesteven’s Local Plan.

-       Major budget increases were planned for body worn cameras (£10,000), Spitalgate garden village (£30,000), disabled facility grants (£975,000) and new posts; Private Sector Housing Officer/Rough Sleeper Support Officer/Housing Options Officer.

 

5.    Effective Council

-       Staff and teams had been shortlisted for several awards this year. South Kesteven won the Best Service Team for Waste, Recycling and Street Scene at the Association for Public Service Excellence conference and awards event, and Joshua Mann won the ‘Rising Star’ award at the Association of Democratic Services Officers (ADSO) Conference 2025.

-       Major budget increases were planned for an Enforcement Officer post, Income Recovery Officer post, funding for compliance works in corporate buildings (£100,000), surface water drainage clearance (£60,000), stock condition surveys (£40,000), River Witham footbridge (£55,000), Grantham Canal (£200,000), grounds maintenance equipment (£130,000) and Council Chamber audio equipment (£88,000).

 

There was a proposed Council Tax increase of £5.66 per year on a Band D property. The public were consulted about this change, and 61% supported the rise in Council Tax.

 

The recommendations were seconded.

 

An amendment to the recommendations was proposed:

 

Council resolves:

 

1.    That the Council Tax increase for South Kesteven District Council for the financial year 2026/27 be set at 1.99%.

 

2.    That the resulting reduction in projected Council Tax income (Appendix A line 15), £96,000, be met from the following 2026/27 budget adjustments:

 

a.    Reduction of £6,000 from conference attendance budget for 2026/27 (Appendix A line 1).

b.    A one-off virement of £45,000 from the General Fund Leisure Reserve (Appendix C line 14).

c.     A one-off virement of £45,000 from the Local Priorities Reserve (Appendix C line 5).

 

The proposer took the view that more of the Council’s financial reserves could be used, if it was in a responsible way.

 

£45,000 from the Leisure Reserve was roughly 5% of the reserve set aside for any future development of the Deepings Leisure Centre.

 

The amendment was seconded.

 

The following points were highlighted during debate on the amendment:

 

·       Using high levels of financial reserves was not a responsible approach to finances.

·       Whilst the amendment was relevant to this year’s budget, it did not address what would happen in future years.

·       The General Fund Leisure Reserve and the Local Priorities Reserve (LPR) were discretionary and used at the will of the Council, therefore they were not ringfenced.

·       ‘Core spending power’ guidelines for local authorities put forward by government assumed that the Council would request the maximum Council Tax increase possible.

·       It would be concerning to see a cut in the LPR as there were several projects in Grantham that had used this reserve.

·       It was important to be mindful of the cost of living, whilst having regard for people’s incomes, rather than inflation. State pensions would rise by 4.8%, and the minimum wage would rise by over 4%. The 2.99% proposed rise in Council Tax was below these levels of increase.

·       Roughly two-thirds of respondents to the public consultation on Council Tax were in support of a 2.99% Council Tax rise.

·       There were arguments in favour of reducing Council Tax this year, but more arguments to put it up, including:

o   The government have advised that the 3-year funding settlement would be enough for the needs of the Council, but specifically on the basis of raising Council Tax by the maximum allowable.

o   Reduction of conference budget – this mainly affected the Leader of the Council who would always attend a number of conferences and training events as part of his role. The point of conferences was to increase knowledge and meet peers.

o   Deepings Leisure Centre reserve –talks were still ongoing about the future of this site.

 

A recorded vote was requested on the amendment to the General Fund Budget – the results of the recorded vote were as follows:

 

For:              Councillors Kyle Abel, David Bellamy, Pam Bosworth, Helen Crawford, Ben Green, Graham Jeal, Gloria Johnson, Jane Kingman, Gareth Knight, Zoe Lane, Robert Leadenham, Richard Litchfield, Nikki Manterfield, Paul Martin, Susan Sandall, Peter Stephens, Ian Stokes, Sarah Trotter, Sue Woolley (19)

 

Against:        Councillors Emma Baker, Rhys Baker, Ashley Baxter, Harrish Bisnauthsing, Pam Byrd, Richard Cleaver, Steven Cunnington, Phil Dilks, Barry Dobson, Tim Harrison, Anna Kelly, Philip Knowles, Bridget Ley, Penny Milnes, Virginia Moran, Charmaine Morgan, Chris Noon, Habib Rahman, Rhea Rayside, Max Sawyer, Ian Selby, Vanessa Smith, Lee Steptoe, Paul Stokes, Elvis Stooke, Murray Turner, Jane Wood, Paul Wood (28)

 

Abstentions:  None.

 

Therefore, the amendment to the motion was LOST, and debate returned to the substantive proposal:

 

·       The purchases of vehicles had been the topic of debate at several committees and members were urged to revisit committee minutes of these meetings if they wanted more information.

·       Fly tipping was an issue for many residents, who reported this through their ward councillors. The extra funding within the budget for this issue was worthwhile.

·       Discretionary reserves included funding for (but not limited to) arts centres and leisure centres. £100,000 had been included in the budget for events; however, due to their ‘discretionary’ nature this funding could be used elsewhere.

·       Funding was being granted to the Citizens Advice Bureau, which helped the poorest and most vulnerable in society.

·       If members removed all discretionary funding, residents would notice and it would not be received positively.

 

A recorded vote was required on the General Fund Budget – the results of the recorded vote were as follows:

 

For:              Councillors Emma Baker, Rhys Baker, Ashley Baxter, Harrish Bisnauthsing, Pam Byrd, Richard Cleaver, Steven Cunnington, Phil Dilks, Barry Dobson, Tim Harrison, Anna Kelly, Philip Knowles, Bridget Ley, Penny Milnes, Virginia Moran, Charmaine Morgan, Chris Noon, Habib Rahman, Rhea Rayside, Max Sawyer, Ian Selby, Vanessa Smith, Lee Steptoe, Paul Stokes, Elvis Stooke, Murray Turner, Jane Wood, Paul Wood (28)

 

Against:        Councillors Kyle Abel, David Bellamy, Pam Bosworth, Helen Crawford, Ben Green, Graham Jeal, Gloria Johnson, Jane Kingman, Gareth Knight, Zoe Lane, Robert Leadenham, Richard Litchfield, Nikki Manterfield, Paul Martin, Susan Sandall, Peter Stephens, Ian Stokes, Sarah Trotter, Sue Woolley (19)

 

Abstentions:  None.

 

Therefore, as the recommendations had been proposed and seconded, following the vote it was AGREED:

 

DECISION:

 

That Full Council:

 

1.    Set a General Fund budget requirement of £22.875m for 2026/27 inclusive of Special Expenses (Section 4 and Appendix A of the report).

 

2.    Set a Council Tax level of £195.03 including Special Expenses for 2026/27 (Band D property).

 

3.    Note indicative Budget estimates for 2027/28 and 2028/29 (Appendix A of the report).

 

4.    Approve the General Fund Capital programme and financing statement 2026/27 to 2028/29 (Section 5 and Appendix B of the report).

 

5.    Approve the General Fund Capital Programme budget carry forward of £1.389m from 2025/26 (Appendix B of the report).

 

6.    Approve the movements in General Fund Reserves (Section 7 and Appendix C of the report).

 

7.    Approve the Treasury Management Strategy Statement (Section 9 and Appendix F of the report).

 

8.    Approve the Capital Strategy (Section 9 and Appendix G of the report).

 

9.    Note the calculations and set the Council Tax for the year 2026/27 made in accordance with requirement set out in the Local Government Finance Act 1992 (Appendix H of the report).

 

Note:  The meeting adjourned at 3:52pm and reconvened at 4:12pm.