Issue - meetings

Report of Councillor P Kerry, Deputy Leader of the Council with responsibility for Finance.

Report of Councillor P R Kerry, Deputy Leader of the Council and Portfolio Holder for Strategic Leadership and Finance

RESOLVED

1.     That all recommendations below are referred to the Council meeting of 26 January 2026.

The following recommendations to Council are made:

2.     That the view of the Director of Finance & Resources, that the  estimates included in the Medium-Term Financial Plan 2025/26 to 2029/30 are robust and that the level of financial reserves are adequate at this time, is accepted.

3.     That officers report back to Cabinet and the Services Scrutiny Committee on a quarterly basis regarding the overall position in respect of the Council’s budgets.

General Fund

4.     A Council Tax increase of £6.48 will be levied in respect of a notional Band D property (2.99%).

5.     The Medium-Term Financial Plan in respect of the General Fund as set out in Appendix 1 of this report was approved as the Current Budget 2025/26, as the Agenda Item 4 Original Budget 2026/27, and as the financial projections in respect of 2027/28 to 2029/30.

6.     That the General Fund Capital Programme as set out in Appendix 4 was approved as the Current Budget in respect of 2025/26, and as the Approved Programme for 2026/27 to 2029/30.

7.     That budget under spends be transferred to the Resilience Reserve to provide increased financial resilience for future years of the plan.

Housing Revenue Account (HRA)

8.     That Council set its rent levels for 2026/27 in consideration of the Social Housing Rent Standard increasing rents by 4.8% from 1st April 2026.

9.     The Medium-Term Financial Plan in respect of the Housing Revenue Account as set out in Appendix 3 of this report was approved as the Current Budget in respect of 2025/26, as the Original Budget in respect of 2026/27, and the financial projection in respect of 2027/28 to 2029/30.

10. That the HRA Capital Programme as set out in Appendix 4 was approved as the Current Budget in respect of 2025/26, and as the Approved Programme for 2026/27 to 2029/30.

11. That the Management Fee for undertaking housing services at £13.962m and the Management Fee for undertaking capital works at £1.1m to Rykneld Homes in respect of 2026/27 was approved.

12. That Members noted the requirement to provide Rykneld Homes with a ‘letter of comfort’ to the company’s auditors and granted delegated authority to the Council’s Director of Finance & Resources (S151 Officer) in consultation with the Deputy Leader of the Council to agree the contents of that letter.

This was not a Key Decision and so can be implemented with immediate effect by officers.

To consider the Cabinet report which will be published on Wednesday 7 January 2026, and can be accessed online at https://democracy.ne-derbyshire.gov.uk/ieListDocuments.aspx?CId=1137&MId=3073&Ver=4

Report of the Director of Finance & Resources and Section 151 Officer

Councillor P Kerry, Deputy Leader and Portfolio Holder for Finance, introduced the draft Medium Term Financial Plan 2025/26 – 2029/30, which would be presented to Council on 26 January 2026.

Councillor Kerry talked about the budget setting process, a key part of which had been the upcoming business rate reset, which was the first reset since 2013. The reset removed all previous growth, significantly affecting the Council’s business rate income.  An increase to Council Tax of 2.99% was being proposed.

The importance of rent affordability for tenants was emphasised, with consideration also given to rising costs pressures on the Housing Revenue Account (HRA). The housing service had recently been awarded a C1 rating, however the financial burden of regulatory and compliance requirements was beginning to have a notable impact.  Consequently, a rent increase of 4.8% was proposed.

The Director of Finance and Resources (Section 151 Officer) gave a presentation which summarised the draft Medium Term Financial Plan. This included details of:

·       General Fund

o   Funding Reforms

o   Waste Reforms

o   Revenue Support Grant (RSG) and Transitional Protection

o   Business Rates

o   Recovery Grant

o   Local Government Reorganisation

o   Council Tax

o   2025/26 Budget

o   2026/27 Original Budget

o   Forecast 2027/28 – 2029/30

o   Reserves

·       Housing Update

o   Housing Revenue Account (HRA)

·       Capital Investment Programme

Members thanked the Director of Finance and Resources (Section 151 Officer) for their presentation and the work in preparing the budget.