Agenda item

(i)              That the Revenue and Capital Budgets as detailed in this report and in the report to Cabinet dated 13 January 2026, be recommended to Full Council for approval.

(ii)             That the updated Medium Term Financial Strategy 2026/27 to 2030/31 (Appendix 2) be recommended to Full Council for approval.

(iii)           That the strategy for ensuring a balanced revenue outturn position for 2025/26, be approved.

(iv)           That the calculation of the Council Tax base and a proposed Council Tax increase for 2026/27 of 1.99% per Band D equivalent property, be recommended to Full Council for approval.

(v)             That the risk assessment at Appendix 3 and the Section 151 Officer’s recommendation on the level of reserves and contingencies provisionally required to be maintained in 2026/27, be recommended to Full Council for approval.

(vi)           That the Civic Growth Fund priorities for 2026/27, be approved.

(vii)          That an extension of the freeze, already announced to £1 after 1pm car parking, be recommended to all hourly car parking charges in support of the motion agreed by Full Council on 21 January 2026 to support the Borough’s Town Centres, High Streets and Villages. And, that the creation of free ‘nipper’ parking at the South High Street be noted. It was further resolved to write to the Chancellor and local Member of Parliament to seek the removal of business rates for town centre car parks.

(viii)        That a freeze in fees relating to tennis, bowls, football and rugby fees and charges for 2026/27, be recommended.

(ix)           That the Capital Strategy (Appendix 5) for 2026/36, be recommended to Full Council for approval.

(x)             That the Treasury Management Strategy (Appendix 6) for 2026/27, be recommended to Full Council for approval.

(xi)           That the Investment Strategy (Appendix 7) for 2026/27, be recommended to Full Council for approval.

(xii)          That the Commercial Strategy (Appendix 8) for 2026/27, be recommended to Full Council for approval.

(xiii)        That the Local Council Tax Reduction Scheme (Appendix 9) for 2026/27, be recommended to Full Council for approval.

The Portfolio Holder for Finance, Town Centres and Growth introduced the report seeking recommendation to Full Council for approval later this month for the 2026/27 General Fund Reserve Budget  and the Capital Programme for 2026/27.  In addition, recommendation to Full Council for approval was also sough for the Capital Strategy for 2026-36 as well as the Treasury Management Strategy, Investment Strategy and Commercial Strategy for 2026-27.

The funding gap was £1.599m which had been found through the Council’s Efficiency Board process and were all feasible and sustainable.  This was not helped by the £1m reduction in funding from the government.  The proposals had been considered twice by the Finance, Assets and Performance Scrutiny Committee and no amendments had been made.

The budget and strategies would be submitted to Full Council the following Wednesday including a 1.99% Council Tax increase towards services and programmes such as the Civic Growth Fund would still be supported.

The Leader stated that the proposals had been through all of the required processes, starting with the Efficiency Board,  there had been the reduction in funding from the Government but the Council had still managed to balance the budget.  The Leader referred to the Civic Pride Fund of £250,000 which, over the last few years had been put back into schemes and initiatives which the Council wished to support.  Recommendation (vii) sought to freeze car parking charges for 2026/27  for the Council’s commitment to support vibrant town centres.  Free nipper parking at the bottom end of the town was also being introduced.  These were all being done through the Council’s Civic Pride Growth Fund along with the freeze to the outside sports charges which would help Newcastle’s bid to be a Town of Culture.

The Leader stated that on social media there had been comments asking why the car parks were not free.  This would result in residents in and around the town centre to park there twenty four hours a day which would, in turn take up spaces for shoppers.  Furthermore, the Council had to pay business  rates on its car parks which totalled £167,000 per year to keep them open, excluding maintenance on them.  The Leader stated that if the Council wished to support its town centres with reducing parking charges and offering more free parking, the business rates needed to be reduced or waived completely.  The Leader proposed that he would write to the local MP and ask him to take up the cause for that and that  recommendation (vii) below be amended accordingly.

Councillor Sweeney echoed the Leader’s comments regarding free parking in the town centre.  The freeze to the outside sports charges was a good idea and such sports should be encouraged – especially amongst the younger generation.

Cabinet Members echoed the previous comments.

The Leader stated that the Civic Pride Fund (formerly the Borough Growth Fund) could be used to help the economic situation in the town.  It was also used for projects such as tree planting and improvements to car parks.  The Leader stated that at Full Council next week he would outline how the Fund would be allocated for the benefit of the Borough.

Resolved:    (i)       That the Revenue and Capital Budgets as detailed

in this report and in the report to Cabinet dated 13 January 2026, be recommended to Full Council for approval.

(ii)             That the updated Medium Term Financial Strategy 2026/27 to 2030/31 (Appendix 2) be recommended to Full Council for approval.

(iii)           That the strategy for ensuring a balanced revenue outturn position for 2025/26, be approved.

(iv)           That the calculation of the Council Tax base and a proposed Council Tax increase for 2026/27 of 1.99% per Band D equivalent property, be recommended to Full Council for approval.

(v)             That the risk assessment at Appendix 3 and the Section 151 Officer’s recommendation on the level of reserves and contingencies provisionally required to be maintained in 2026/27, be recommended to Full Council for approval.

(vi)           That the Civic Growth Fund priorities for 2026/27, be approved.

(vii)          That an extension of the freeze, already announced to £1 after 1pm car parking, be recommended to all hourly car parking charges in support of the motion agreed by Full Council on 21 January 2026 to support the Borough’s Town Centres, High Streets and Villages. And, that the creation of free ‘nipper’ parking at the South High Street be noted.  It was further resolved to write to the Chancellor and local Member of Parliament to seek the removal of business rates for town centre car parks.

(viii)        That a freeze in fees relating to tennis, bowls, football and rugby fees and charges for 2026/27, be recommended.

(ix)           That the Capital Strategy (Appendix 5) for 2026/36, be recommended to Full Council for approval.

(x)             That the Treasury Management Strategy (Appendix 6) for 2026/27, be recommended to Full Council for approval.

(xi)           That the Investment Strategy (Appendix 7) for 2026/27, be recommended to Full Council for approval.

(xii)          That the Commercial Strategy (Appendix 8) for 2026/27, be recommended to Full Council for approval.

(xiii)        That the Local Council Tax Reduction Scheme (Appendix 9) for 2026/27, be recommended to Full Council for approval.

Watch the debate here