Issue - meetings

Please note revised versions of Report CAB3541 and Appendices A and C from those considered at Cabinet on 12 February 2026.

a)           That Cabinet recommend to Council:

1.    That the level of General Fund Budget for 2026/27 be agreed and the summary be recommended as shown in Appendix A of CAB3541, as amended, due to the late change in the Government's local government financial settlement announced by MHCLG on 10 February 2026.

2. That in relation to the Greener Faster Council Plan priority:

a.    a growth of £30,000 be approved to increase the annual Town Account tree maintenance budget as a result of risks associated with the effects of climate change and associated tree disease.

3. That in relation to the Healthy Communities priority of the new Council Plan:

a. the revised income bands for the Council Tax Reduction scheme for working age applicants (set out in Appendix E of report CAB3541) be approved, that ensure claimants continue to receive the appropriate level of support after the DWPs increase in Universal Credit rates with effect from 1 April 2026.

4. That in relation to the Efficient and Effective priority:

a. a growth to the annual expenditure budget of £89,000 be approved for improvements to make the way our residents’ contact us is easier and faster.

5. That other service expenditure annual budgets be amended as follows, in response to revised estimates:

a. Utility budget increased by £150,000 in order to cover the additional forecast utility costs from 2026/27.

b. An additional budget of £115,000 per annum from 2026/27 for the Corporate Head of Resources.

c. A growth of £130,000 to reflect the net budget pressure of the migration of the Land Charges service to HM Land Registry.

d. A net budget saving of £215,000 per annum to reflect changes to forecast employers’ pension contributions and rates.

6. That one-off service expenditure budgets be approved as follows:

a. A £470,000 digital transformation budget, relating to the implementation of improvements to make our residents’ digital contact with us easier and faster, with £400,000 funded from the digital transformation reserve and £70,000 funded from the transitional reserve.

b. A Town Account budget of £15,000 for feasibility work related to speed indicators within the town area, funded by the town reserve.

c. £1.7m for essential structural and repair works to the Guildhall to maintain this listed civic building (and required prior to further decision making on the future operating model of the Guildhall and Abbey House) funded from Property - Asset Management Reserve, and delegates authority to:

i.  the Strategic Director to appoint, in accordance with the council’s Contract Procedure Rules (CPRs), all necessary consultants to prepare design work for the works required to the Guildhall through a competitive bid process or framework;

ii.  the Strategic Director to undertake a procurement exercise to obtain bids or use of a framework to appoint a contractor(s) for the works required to the Guildhall, in accordance with the council’s CPRs;

iii. the Strategic Director to appoint  ...  view the full agenda text for item 6.

That it be recommended to Council*:

1.      That the level of General Fund Budget for 2026/27 be agreed and the summary be recommended as shown in Appendix A of CAB3541, as amended, due to the late change in the Government's local government financial settlement announced by MHCLG on 10 February 2026.

2.      That in relation to the Greener Faster Council Plan priority:

a.      a growth of £30,000 be approved to increase the annual Town Account tree maintenance budget as a result of risks associated with the effects of climate change and associated tree disease.

3.      That in relation to the Healthy Communities priority of the new Council Plan:

a.      the revised income bands for the Council Tax Reduction scheme for working age applicants (set out in Appendix E of report CAB3541) be approved, that ensure claimants continue to receive the appropriate level of support after the DWPs increase in Universal Credit rates with effect from 1 April 2026.

4.      That in relation to the Efficient and Effective priority:

a.      a growth to the annual expenditure budget of £89,000 be approved for improvements to make the way our residents’ contact us is easier and faster.

5.      That other service expenditure annual budgets be amended as follows, in response to revised estimates:

a.      Utility budget increased by £150,000 in order to cover the additional forecast utility costs from 2026/27.

b.      An additional budget of £115,000 per annum from 2026/27 for the Corporate Head of Resources.

c.      A growth of £130,000 to reflect the net budget pressure of the migration of the Land Charges service to HM Land Registry.

d.      A net budget saving of £215,000 per annum to reflect changes to forecast employers’ pension contributions and rates.

6.      That one-off service expenditure budgets be approved as follows:

a.      A £470,000 digital transformation budget, relating to the implementation of improvements to make our residents’ digital contact with us easier and faster, with £400,000 funded from the digital transformation reserve and £70,000 funded from the transitional reserve.

b.      A Town Account budget of £15,000 for feasibility work related to speed indicators within the town area, funded by the town reserve.

c.      £1.7m for essential structural and repair works to the Guildhall to maintain this listed civic building (and required prior to further decision making on the future operating model of the Guildhall and Abbey House) funded from Property - Asset Management Reserve, and delegates authority to:

                      i.        the Strategic Director to appoint, in accordance with the council’s Contract Procedure Rules (CPRs), all necessary consultants to prepare design work for the works required to the Guildhall through a competitive bid process or framework;  

                     ii.        the Strategic Director to undertake a procurement exercise to obtain bids or use of a framework to appoint a contractor(s) for the works required to the Guildhall, in accordance with the council’s CPRs;

                    iii.       the Strategic Director to appoint the relevant contractors and to negotiate and agree contractual heads of terms with the contract appointment; and

                   iv.        the Service Lead:  ...  view the full decision text for item 7

Councillor Cutler introduced the report and drew attention to the notification earlier that week that the Government had made a calculation error regarding business rate pooling which had resulted in a reduction in the settlement by just under £1.4 million per annum.  The government had agreed one-off Adjustment Support Grants for 26/27 to cover this loss for the current year, however the annual £1.4 million reduction would impact subsequent years.  Appendices A (General Fund Medium Term Financial Projections) and C (Reserves) of the report had been updated and circulated to Cabinet and other members present.

Councillor Cutler advised that the government error had been reported to Scrutiny Committee on 10 February and noted that the draft minutes of that committee had been circulated to Cabinet and other members present.

At the invitation of the Leader, Councillors Godfrey and Batho addressed Cabinet as summarised briefly below.

Councillor Godfrey

Councillor Godfrey criticised the budget as unambitious, arguing that it prioritised retaining millions in reserves over the immediate interests of Winchester taxpayers.  He believed that a maximum council tax increase was unnecessary given the generous government settlement and opposed allocating funds for local government reorganisation rather than providing direct services.  He urged the council to use its reserves for tangible community benefits, such as home insulation and support for small businesses. Finally, he questioned the high expenditure on the Guildhall, noting that the building would remain largely closed to the public despite the investment

Councillor Batho

Councillor Batho, acting as the coordinator of community speed watch in Winchester, highlighted the prevalence of motorists exceeding speed limits on residential roads and the resulting concerns expressed by local residents. He supported the proposed budget for 2026/27 regarding feasibility work on speed indicator devices, asserting that these tools effectively remind motorists of speed limits and facilitate the council’s active travel objectives. He requested that Cabinet prioritise this feasibility study as soon as possible.

Councillors Cutler, Learney and Tod responded to the comments made, including emphasising the importance of council reserves in the current national climate of high levels of uncertainty.

Councillor Tod also made reference to a question received from Councillor Lee who was unable to attend the meeting.

Councillor Cutler proposed an amendment to the report’s first recommendation to reflect the amendment to Appendix A of the report due to the late change in the Government’s local government financial settlement referred to above.  This was agreed and it was noted that an amended report and appendices would be submitted to Council.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RECOMMENDED (TO COUNCIL):

1.       That the level of General Fund Budget for 2026/27 be agreed and the summary be recommended as shown in Appendix A of CAB3541, as amended, due to the late change in the Government's local government financial settlement announced by MHCLG on 10 February 2026.

2.       That in relation to the Greener Faster Council Plan priority:

a.       a growth of £30,000 be approved  ...  view the full minutes text for item 7

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3541 which is to be considered by cabinet at its meeting on the 12 February 2026.

Councillor Neil Cutler, Deputy Leader and Cabinet Member for Finance and Transformation introduced the report, ref CAB3541 which set out proposals for the General Fund Budget 2026/27. The introduction included the following points.

1. The budget paper was prepared based on the Medium Term Financial Strategy (MTFS) and budget options presented to the committee in November 2025.
2. The priority remained on maintaining business as usual and prioritising key projects.
3. The provisional government spending settlement received on 17 December 2025 was worse than expected, potentially leaving a deficit of £3.5 million rather than the expected £1.8 million over a 3-year period.
4. It had been confirmed earlier this month that the government had made a calculation error regarding business rates pooling, the correction of which was resulting in a reduction of the settlement by just under £1.4 million per year.
5. The government had provided a special grant to cover this loss for the current year, meaning the 2026/27 budget remained balanced; however, the annual £1.4 million reduction would impact subsequent years.
6. The MTFS figures would be updated to reflect this change before being presented to the Cabinet on the 12 February 2026.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3541, which was to be considered by the cabinet at its meeting on 12 February 2026. The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1. A question was asked regarding the government recalculation, specifically whether this affected most councils in the same way or if Winchester City Council was particularly affected.
2. A question was raised regarding the statement that Shire Districts were mainly affected by the recalculation, and how this would affect LGR plans and the preservation of services for the new unitary councils.
3. Clarification was sought regarding paragraph 14.3 on the digital customer experience, and whether the system would track queries from residents who contacted the council by phone or in person.
4. A question was asked regarding recommendations four and six, specifically the reasons for the spending of £470k (one-off) and £89k (recurring) on “digital transformation” software.
5. Clarification was sought regarding the £60k income reduction for the Guildhall.
6. A question was asked regarding the Guildhall condition surveys, and the level of contingency included in the budget given the history of rising costs for building works.
7. Clarification was requested regarding page 75, specifically regarding risk reserves in support of the TC25 programme.
8. A question was asked regarding the debt write-off mentioned in paragraph 21, and whether lessons had been learned to avoid such positions in the future.
9. A question was raised regarding New Burdens Funding, and whether existing funding was adequate to cover additional duties resulting from the Renters' Rights Bill and homelessness requirements.
10. Clarification was sought regarding the employer's pension contribution reduction.
11. A question was asked regarding the reference to “parking overtime” of £30k in and whether this was a one-off or anticipated to be recurring.
12. Clarification was sought regarding the Community Infrastructure Levy (CIL) General Fund  ...  view the full minutes text for item 9