At a meeting of Full Council on Wednesday (11 February) we set our net budget for 2026-2027 at £817.6 million and agreed to a council tax rise of 4.90%. The maximum rise allowed by government without triggering a referendum or seeking permission is 4.99%.
At the meeting a number of budget-related reports were agreed, including the Revenue Budget Report 2026-27 which can be found on Council meeting agenda item 11.
This report sets out our current financial position and includes the impact of external factors, such as pay and price inflation and increasing costs and demand for council services, particularly in children’s services, mainly around special educational needs (SEND) and adult social care, which are contributing to significant additional spending.
The Revenue Budget Report and accompanying appendices also detail our reserves position and a Medium-Term Financial Plan which includes savings that will need to be achieved by 2030 to 2031.
We are currently forecasting a budget overspend of £1.6 million which it needs to reduce by the end of the financial year. We must also continue to deliver savings and make efficiencies to remain financially stable in future years.
New savings proposals of £42.96 million were put forward last month after we predicted a shortfall in our budget for the year ahead (2026-2027). This figure is made up of £35.5 million of new ongoing savings and £7.4m of one-off savings. In addition, there are £12.4 million of savings approved as part of the budget for 2025 to 2026. Therefore, there is a total of £55.3 million savings included in the budget for the year ahead.
These savings will come from a range of initiatives across the council, with some of the proposals requiring public consultation before decisions are made as to whether to take them forward, including a proposal to close the Glossop household waste recycling centre.
The Full Council meeting saw councillors agreeing the balanced budget for the year ahead, and the below maximum 4.90% council tax rise. The council tax level agreed will contribute to additional council income of £21.4 million. The 4.90% total will be made up of 2% to go directly towards adult social care costs (known as the adult social care precept) and 2.90% for general council expenditure.
The rise will see a Band B household paying an extra £62.09 per year (£1.19 per week) and a Band D household paying an extra £79.83 per year (£1.53 per week).
At the meeting it was also agreed to increase the minimum level of general reserve we hold to £35 million, which is an increase on the previous minimum of £25 million.
Our Cabinet Member for Council Efficiency (DOGE) Councillor John Lawson said:
“A lot of hard work has gone in to setting a balanced budget for the year ahead and some difficult decisions need to be made in the coming months to ensure we stay on track and are able to work within this budget while ensuring vital services our most vulnerable residents rely on are delivered.
“Raising council tax is not something we wanted to do but we felt we were left with no choice due to the continuing cost and demand pressures the council faces and the disappointing Local Government funding settlement received from MHCLG (Ministry of Housing, Communities & Local Government) which is a real-terms reduction in Central Government funding over the next three years. The level agreed is not the maximum and it is the lowest rise in three years, but we understand the pressures faced by households across the county and will continue to look at this in future years.’’
Council leader Councillor Alan Graves said:
“The council’s financial position has improved compared to recent years and we are determined this will continue. This includes us being able to raise the minimum level of general reserves which we believe is a prudent move due to the challenging times we are facing.
“We will work sustainably and within our means and continue to focus on delivering services to those who need and rely on them.
“With hard work and careful management, by cutting out any waste and changing the way we operate as a whole across the council, we will ensure our position continues to improve which will benefit Derbyshire residents, businesses and communities in the years to come.”