Agenda item

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 report.

iii.            The specified and non-specified investments schedule (annex B).

iv.           The scheme of delegation and the role of the section 151 officer (annex D).

 

Reason: To enable the continued effective operation of the treasury management function and ensure that all council borrowing is prudent, affordable and sustainable.

 

Liberal Democrat Amendment

 

Councillor Ayre moved and Councillor Widdowson seconded, the following amendment from the Liberal Democrat Group:

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 13i of pages 45 and 46 of Council papers refers):

 

In bullet point 3 add at the end of the sentence subject to the following amendments:

 

·      £600k increase in Library Service Budget.

·      £300k (£222k recurring and £78k one off) additional funding to frontline services.

·      £100k one-off additional discounts to Green Waste charges.

·      £300k one-off reduction in parking charges.

·      £150k one off budget to reinstate Dial & Ride Service in 2026/27 (funded by Public Health Grant).

·      £50k revenue budget for Treasury Management to fund additional £588k capital investment.

·      £52k one off budget for Community Skips.

·      £250k one off additional budget to support residents with healthy food and weight management (funded by Public Health Grant).

·      Remove £30k one off budget for paper based CYC communications.

 

In bullet point 4 add at the end of the sentence subject to the following amendments:

 

·      Delete additional Executive Support Assistant to Political Groups – £32k.

·      Reduction in Chief Officer roles, grades and capacity – £118k.

·      Reduction of two Executive Members – £42k.

·      Delete posts in the communications team – £84k.

·      Restructure posts in Democratic Governance – £25k.

·      Reduction in the ICT budget – £150k.

·      No longer fund Economic Development with the ambition of this being passed to the Combined Authority – £140k.

·      Reduction in revenue spend resulting from removing £2m from the capital budget (£1m Fleet replacement and £1m IT) – £170k.

·      Reduce budget for usage of phones – £5k.

·      Deliver alternative funding model for Policy & Strategy team – £76k.

·      Review of proportion of senior management staff funded by grants / capital – £30k.

 

Add additional bullet points to paragraph 13(i)

 

·      The use of £400k from the Public Health Reserve.

·      The use of £200k from the CYT/WWY Reserves and the use of £300k of Make it York Reserves subject to Board approvals.

·      Redistribute the City-Wide Ward Committee budget into individual ward allocations.

 

Following debate, the amendment was put to the vote and declared LOST.

 

(The meeting adjourned at 7.30pm for a short break and reconvened at 7.45pm.)

 

Conservative Amendment (1 of 2)

 

Councillor Steward moved and Councillor Nicholls seconded, the following amendment from the Conservative Group.

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 13i of pages 45 and 46 of Council papers refers):

 

In bullet point 1 delete ‘£187.009m’ and replace with ‘£186.989m’.

 

In bullet point 2 delete ‘£127.181m’ and replace with ‘£127.161m’.

 

In bullet point 3 add at the end of the sentence subject to the

following amendments:

 

·      £1,935k (one off) impact of reinstating a free first garden bin collection service for 2026/27.

·      £50k Park fund (one off) split £25k York Central and £25k York Outer.

·      £10k (one off) to provide free compost bins to be collected by the public.

·      £100k revenue cost of adding £1m capital to the Highways Budget.

·      £100k (one off) budget for Parking incentives.

·      £25k (one off) Farmers Hardship Fund to ensure benefits are accessed.

·      £150k establish non-parished community fund to be spent locally.

·      Remove £30k (one off) for paper based CYC communications.

·      Remove £20k (one off) for continuation of the filmmaking in schools’ project.

·      Remove £90k (one off) additional Community Caretakers Capacity.

·      Remove £50k (one off) funding for community events in parks and community spaces.

 

In bullet point 4 add at the end of the sentence ‘subject to the

following amendments’:

 

·      Outsource management of the Mansion House – £25k.

·      Outsource Adult Social Care Personal Support – £60k.

·      Outsource Adult Social Care Day Support – £38k.

·      Outsource Flaxman Avenue services – £26k.

·      Reduce CCTV budget – seek funding from North Yorkshire Police – £100k.

·      Delete posts in Democratic Governance – £92k.

·      Delete budget for Our City – £10k.

·      Reduction in Chief Officer roles and capacity – £200k.

·      Reduce Executive Special Responsibility Allowances by 25% - £57k.

·      Delete posts in the corporate policy team – £105k.

·      Delete posts in the communications team – £150k.

·      Reduce overtime budget – £100k.

·      Delete post in Equalities Team – £52k.

·      Delete posts in the Communities Team – £160k.

·      Reduction in ICT budget – £150k.

·      No longer fund Economic Development – £140k.

·      Reduction in council publicity – £30k.

·      Review of staff travel – £20k.

·      Remove school crossing patrols where other physical measures in place – £20k.

·      Delete Community Caretakers scheme (£150k).

 

Add additional bullet point to paragraph 13

 

·      The use of £200k from CYT/WWY Reserves and £300k from MIY Reserves to fund one off growth (subject to board approval).

 

In paragraph 13 ii) third line, delete ‘4.99%’ and replace with ‘4.97%’.

 

Following debate, the amendment was put to the vote and declared LOST.

 

Conservative Amendment (2 of 2)

 

Councillor Nicholls moved and Councillor Steward seconded, the following amendment from the Conservative Group.

 

Revenue Budget

 

In relation to the Executive’s recommendations on the revenue budget (paragraph 13i of pages 45 and 46 of Council papers refers):

 

In bullet point 3 add at the end of the sentence ‘subject to the

following amendments’:

 

·      £38k revenue cost of adding £250k capital to the Highways budget.

·      £90k additional funding for pothole repairs in the Highways budget.

 

In bullet point 4 add at the end of the sentence subject to the

following amendments:

 

·      Delete Political Assistants posts – £86k.

·      Reduction of two Executive Members – £42k.

 

Following debate, the amendment was put to the vote and declared LOST.

 

(Councillor Burton left the meeting at the conclusion of the second Conservative amendment.)

 

After debate, a named vote was taken on the original recommendations.

 

The vote was as follows:

 

	For	Against	Abstain
Councillor Ayre		1
Councillor Baxter	1
Councillor Clarke	1
Councillor Coles	1
Councillor Crawshaw	1
Councillor Cullwick		1
Councillor Cuthbertson		1
Councillor Douglas	1
Councillor Fenton		1
Councillor Fisher		1
Councillor Healey		1
Councillor Hollyer		1
Councillor Hook		1
Councillor Kent	1
Councillor Kilbane	1
Councillor Knight		1
Councillor Lomas	1
Councillor Mason		1
Councillor Melly	1
Councillor Merrett	1
Councillor Moroney	1
Councillor Myers	1
Councillor Nelson	1
Councillor Nichols		1
Councillor Orrell		1
Councillor Pavlovic	1
Councillor Perrett	1
Councillor Ravilious	1
Councillor Rose	1
Councillor Rowley			1
Councillor Runciman		1
Councillor Smalley		1
Councillor Steels-Walshaw	1
Councillor Steward		1
Councillor Taylor	1
Councillor Waller		1
Councillor Wann		1
Councillor Warters		1
Councillor Watson		1
Councillor Waudby		1
Councillor Webb	1
Councillor Wells	1
Councillor Whitcroft	1
Councillor Widdowson		1
Councillor Wilson	1
Totals:	23	21	1

 

The original recommendations were therefore declared CARRIED and it was

 

Resolved: That Executive’s recommendations to Council be approved.

 

(Councillor Warters left the meeting at the conclusion of this item.)

 

(The meeting adjourned for a short break at 9.00pm and reconvened at 9.05pm.)