Agenda and draft minutes

The Lord Mayor welcomed all in attendance to the February Budget Council meeting.  He particularly welcomed Councillor Anna Perrett to her first Council meeting since been elected as Ward Member for Heworth following the by-election on 15 January 2026.

The Lord Mayor highlighted that this evening was the first game for York Knights in the Super League. A message had been sent to the owner and Chairman to convey best wishes on behalf of City of York Council (CYC).

To receive and note apologies for absence.

An apology for absence was submitted on behalf of Councillor Vassie.

At this point in the meeting, Members are asked to declare any disclosable pecuniary interest, or other registerable interest, they might have in respect of business on this agenda, if they have not already done so in advance on the Register of Interests. The disclosure must include the nature of the interest.

An interest must also be disclosed in the meeting when it becomes apparent to the member during the meeting.

(Please see attached sheet for further guidance.)

Councillor Coles declared a non-pecuniary interest in relation to agenda item 9, Council Tax Resolution 2026/27, in her capacity as Deputy Mayor for Policing, Fire and Crime for York and North Yorkshire.

To approve and sign the minutes of the Extraordinary Council Meeting and the Ordinary Council Meeting, both held on 6 November 2025.

Resolved: That the minutes of the Extraordinary Council Meeting

and the Ordinary Council Meeting, both held on 6 November 2025,

be approved and then signed as a correct record.

To consider any announcements made by the Lord Mayor in respect of Civic business.

The Lord Mayor provided an update on the Lord Mayor’s Commendation Scheme, which had been established to recognise extraordinary contributions from individuals across local communities. The closing date for nominations was 2 March 2026. Further information could be found on the Council’s website.

At this point in the meeting, any member of the public who has registered to address the Council, or to ask a Member of the Council a question, on a matter directly relevant to the business of the Council or the City, may do so.  The deadline for registering is 5.00pm on Tuesday, 10 February 2026.

To register to speak please visit www.york.gov.uk/AttendCouncilMeetings to fill in an online registration form. If you have any questions about the registration form or the meeting please contact Democratic Services. Contact details can be found at the foot of this agenda.

Webcasting of Public Meetings

Please note that, subject to available resources, this public meeting will be webcast including any registered public speakers who have given their permission. The remote public meeting can be viewed live and on demand at www.york.gov.uk/webcasts.

The Lord Mayor reported that there had been one registration to speak at the meeting under the Council’s Public Participation Scheme.

Gwen Swinburn expressed concern that Members had been reliant on statutory advice that did not address a significant liability already set out in the accounts. That Members must have regard to the Chief Financial Officer's advice on both the robustness of the estimates and the adequacy of the reserves before setting the budget. This was set out in section 25 of the Local Government Act 2003.

It was reported that there was a need to make multiple million-pound savings whilst the general fund reserves stood at just £7.4m, which was described as the minimum level. The first call on those reserves was any significant savings not achieved. Section 25 wording remained substantively unchanged from last year and concluded that the minimum reserves were adequate. Yet the draft statement of accounts disclosed a contingent equal pay liability linked to continuing task and finish working practice. There was concern that the section 25 advice contained no reference to the contingent liability. That there was no explanation of how that exposure had been factored into the robustness of the accounts and the reserves assessment.

It was reported that at Southampton, equal pay exposure arose from similar task and finish arrangements to CYC in waste services. LGA peer challenge identified liabilities as up to £52m, which required exceptional financial support from central government. An increasing number of local authorities across the UK were dealing with liabilities measured in tens of millions. There was concern that CYC could be facing a bill of £10m to £30m.

It was stated that Members were being asked to approve a budget that was reliant on minimum reserves, dependent on significant savings delivery, and where the section 25 advice did not set out how the disclosed contingent liability had been assessed within that judgment. That this matter had not been clearly set out in the budget papers. And that without clear and substantive briefing and knowledge, Members were unable to properly exercise their statutory oversight responsibilities.

To consider any petitions received from Members in accordance with Standing Order B5.

(There are no petitions to consider on this occasion.)

There were no petitions to consider on this occasion.

To consider recommendations made by Executive at its meeting held on 27 January 2026 in relation to the Capital Programme - Monitor 3 2025/26.

The recommendations are set out in the attached document and will be moved by the Executive Leader.

Details of the agenda and papers for the Budget Executive meeting held on 27 January 2026 can be viewed by accessing the link below:

https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=15178&Ver=4

Councillor Douglas moved and Councillor Kilbane seconded the following recommendation made at the Executive meeting held on 27 January 2026:

Resolved (unanimously) – That Executive

a)   Recommends to Full Council the adjustments resulting in a decrease in the 2025/26 budget of £23.432m as detailed in the report.

b)   Approves the allocation of £40k from contingency to fund a Changing Places Toilet at SEND Central Family Hubs.

c)    Approves the purchase of £162k property to support the Rough Sleeping Programme funded from grant.

d)   Notes the 2025/26 revised budget of £139.034m as set out in paragraph 10 and Table 1 of the report.

e)   Notes the restated capital programme for 2025/26 – 2029/30 as set out in Annex 1 of the report.

Reason: To enable the effective management and monitoring of the Council’s capital programme.

On being put to the vote, the recommendation was declared CARRIED and it was

Resolved – That the above recommendation be approved.

To consider recommendations made by Executive at its meeting on 27 January 2026, in relation to:

i)              The Financial Strategy 2026/27 to 2030/31

ii)             The Capital Budget 2026/27 to 2029/30

iii)           The Capital Financing and Investment Strategy

iv)           The Treasury Management Strategy Statement 2026/27 to 2030/31.

The recommendations are set out in the attached document and will be moved by the Executive Leader.

Details of the agenda and papers for the Budget Executive meeting held on 27 January 2026 can be viewed by accessing the link below:

https://democracy.york.gov.uk/ieListDocuments.aspx?CId=733&MId=15178&Ver=4

Councillor Douglas moved and Councillor Kilbane seconded, the following recommendations made by Executive at its meeting on 27 January 2026 in relation to:

i)              The Financial Strategy 2026/27 to 2030/31 (Revenue Budget)

ii)             The Capital Budget 2026/27 to 2029/30

iii)           The Capital Financing and Investment Strategy

iv)           The Treasury Management Strategy Statement 2026/27 to 2030/31.

Revenue Budget

Executive recommends that Council:

i.               Approves the budget proposals outlined in the Financial Strategy report and in particular:

·      The net revenue expenditure requirement of £187.009m.

·      A council tax requirement of £127.181m.

·      The revenue growth proposals as outlined in paragraphs 75 to 77.

·      The 2026/27 revenue savings proposals as outlined in

annex 2.

·      The fees and charges proposals as outlined in annex 3.

·      The Housing Revenue Account (HRA) 2026/27 budget set out in annex 5.

·      The Dedicated Schools Grant (DSG) proposals outlined from paragraph 168.

·      The Flexible Use of Capital Receipts Policy set out in annex 7, including delegation to the Director of Finance to determine the costs that can be charged to the transformation programme.

ii.             Notes that the effect of approving the income an expenditure proposals included in the recommendations would result in a 4.99% increase in the City of York Council element of the council tax, 2% of which would relate to the social care precept.

Reason: To ensure a legally balanced budget is set.

Capital Budget 2026/27 to 2029/30

Executive recommends that Council approves the budget proposals outlined in the Capital Budget 2026/27 to 2029/30 and in particular:

i.               Agree to the revised capital programme of £382.998m that reflects a net overall increase of £42.180m (as set out in table 2 and in Annex 1). Key elements of this include:

·      New schemes funded by prudential borrowing totalling £0.785m as set out in table 3.

·      Extension of prudential borrowing funded Rolling Programme schemes totalling £1.125m as set out in table 4.

·      Extension of externally funded Rolling Programme schemes totalling £37.950m as set out in table 7.

·      An increase in HRA funded schemes totalling £2.320m funded from a combination HRA balances/capital receipts as set out in table 8.

ii.             Note the total increase in Council borrowing as a result of new schemes being recommended for approval is £0.179m the details of which are considered within this report and the financial strategy report.

iii.            Approve the full restated programme as summarised in Annex 2 totalling £382.998m covering financial years 2026/27 to 2029/30 as set out in table 13 and Annex 2.

Reason: To ensure a legally budget is set and that the capital programme is fully funded.

Capital and Investment Strategy

Executive recommends that Council:

i.               Approve the Capital and Investment Strategy at Annex A.

Reason: To meet the statutory obligation to comply with the

Prudential Code 2017.

Treasury Management Strategy Statement and Prudential

Indicators

Executive recommends that Council approve:

i.               The treasury management strategy for 2026/27 including the annual investment strategy and the minimum revenue provision policy statement.

ii.             The prudential indicators for 2026/27 to 2029/30 in the main body of the  ...  view the full minutes text for item 72.

To receive and consider a report from the Director of Finance asking Members to approve the rate of council tax for 2026/27.

Councillor Douglas moved and Councillor Lomas seconded, the Council Tax resolution for 2026/27, the details of which were set out in the Council papers under agenda item 9.

A named vote was required on the Council Tax Resolution 2026/27.

The vote was as follows:

The motion was declared CARRIED, and it was

Resolved:

i)              That it be noted that on 28 November 2025 the Chief Finance Officer, under her delegated authority, calculated the council tax base for the year 2026/27:

a)   for the whole Council area as 69,978.60 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the “Act”)]; and

b)   for those dwellings in those parts of its area to which a Parish precept relates as in column 1 in the attached Schedule A.

ii)             Calculate that the Council Tax requirement for the Council’s own purposes for 2026/27 (excluding Parish precepts) is £127,181,207.

iii)           That the following amounts be calculated for the year 2026/27 in accordance with Sections 31 to 36 of the Act:

(a)      £605,666,340     being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.

(b)      £477,278,872     being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c)      £128,387,468     being the amount by which the aggregate at 10(a) above exceeds the aggregate at 10(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. [Item R in the formula in Section 31B of the Act].

(d)      £1,834.67           being the amount at 10(c) above [Item R], all divided by Item T (8(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

(e)      £1,206,261         being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act (as per the attached Schedule A).

(f)        £1,817.43           being the amount at 10(d) above less the result  ...  view the full minutes text for item 73.

To receive and consider a report from the Director of Governance presenting for approval the Council’s Pay Policy Statement for 2026/2027.

The Director of Governance submitted a report which presented for approval the Council’s Pay Policy Statement for 2026-27.

Councillor Douglas moved and Councillor Lomas seconded the recommendations contained in the report:

Resolved (unanimously):

a)   That the Council approves the Pay Policy Statement for 2026 – 2027.

Reason:In order to fulfil the requirements of Section 38 – 43 of the Localism Act 2011 for the Council to produce and publish an annual policy statement that covers a number of matters concerning the pay of the Council’s senior staff, principally Chief Officers and relationships with the pay of the rest of the workforce.

b)   Notes that there will be a revised pay policy statement presented to full council after the appointment of the new Chief Executive in April 2026.

Reason: The Council is required to republish a pay policy statement where there are significant changes to pay structures or

management arrangements. This ensures compliance with the statutory requirements of the Localism Act 2011.

c)    Notes that on approval the Pay Policy statement will be published on the Council’s website.

Reason: For compliance with the statutory requirements of the

Localism Act 2011.

To consider and agree appointments and changes to membership of committees and outside bodies.

The Director of Governance submitted a report which invited Members to consider and agree changes to membership of committees and outside bodies.

Resolved – That Council

i)              Agrees the appointment of Councillor John Moroney as an additional member of the Fostering Panel.

ii)             Notes the group nominations to Committees, as well as appointments to the Chair of the Place Scrutiny Committee, as follows:

·      Appointment of Chair of Place Scrutiny Committee – Councillor Danny Myers.

·      Appointment of Councillor Anna Perrett, to both the Corporate Scrutiny Committee and the Licensing Committee.

·      Councillor Margaret Wells to move from the Corporate Scrutiny Committee to the Place Scrutiny Committee.

·      Councillor Anna Baxter to move from the Place Scrutiny Committee to the Planning Committee.

·      Councillor Tony Clarke to move from the People Scrutiny Committee to the Place Scrutiny Committee.

·      Appointment of Councillor Danny Myers to the People Scrutiny Committee.

iii)           Notes the appointment of Parish Councillor, Pam Mullen to the Kyle and Upper Ouse Internal Drainage Board.

Any other business which the Chair considers urgent under the Local Government Act 1972.

There was no urgent business to consider.