Budget and Financial Strategy 2026-27

Budget Setting and Associated Financial Strategies 2026/27 - 2030/31

Contents

1. Introduction and Executive Summary
2. Budget Assumptions
3. Financial Resources
4. 2026/27 Spending Plans
5. Budget Requirement
6. Reserves
7. The Transformation and Efficiency Plan
8. Risk and Sensitivity
9. Capital Programme
10. Treasury Management
11. Options
12. Appendices
13. External Appendices

1. Introduction and Executive Summary

1.1 Introduction

The final settlement released by Government in February 2026 is the first multi-year settlement in a decade; this covers the three financial years from 2026/27-2028/29 and brings an increased certainty for medium term planning. The settlement is based on the long-awaited Fair Funding review which as the name suggests attempts to distribute the fixed funding pot more fairly between local authorities through a refresh of the apportionment methodology. However, as this has been based on deprivation indices, Rushcliffe is one of the worst authorities affected seeing a reduction in core spending power of 2.25% between 2025/26 and 2028/29 (see appendix 6 for comparative breakdown). The Council mitigated this risk with prudent assumptions built into last year’s Medium Term Financial Strategy (MTFS) and careful planning has allowed a balanced budget to be achieved. The resource allocation has less focus on rewarding and compensating authorities with regards to growth, epitomised by the loss of New Homes Bonus, which was a significant funding stream for the Borough (regularly circa £1,500,000 or more).

Fair Funding has consolidated previous grants including New Homes Bonus and Employer NI grant, rolling them into one Revenue Support Grant (RSG) which has been calculated to give a revised allowance based on indices with a high weighting towards deprivation. Business Rates baselines (expected collection amounts) have been reset, and a mansion tax for properties over £2,000,000 has been introduced, however this will be retained by Government and possibly recycled to Local Government from 2028/29. The effect of the reset is a reduction from £6.676m in Business Rates income in 2025/26 to £2,675,000 in 2026/27 a 60% reduction, however due the late adjustments to the methodology between the provisional and the final settlement, a one-year adjustment grant will be paid to offset the adverse impact of the change (£484,000). Further transition grant in 2027/28 and 2028/29 totalling £1,115,000 additional income offsets this in the short term however this only represents protection to a 95% funding ‘floor’ when compared to Core Spending Power in 2025/26. Due to the business rates reset all Nottinghamshire authorities in the Nottinghamshire Business Rates Pool have agreed to dissolve the pool as downside risks outweigh upside risks (Appendix 7 gives further information).

Implementation of Simpler Recycling (SR) has begun with kerbside glass collections commencing in 2025/26 and will be followed by kerbside food collection in 2027/28. There remain uncertainties around the level of funding with an indication of £1,279,000 for 2026/27 and the expectation that this will reduce as producers seek to minimise the Extended Producer Responsibility (EPR) charge by changing packing which drives the EPR grant paid to Local Authorities. With costs of these increased collections estimated at £1,500,000 by 2030/31, it is clear that there will be both significant revenue and capital pressures. A Simpler Recycling Reserve was established to mitigate these pressures and has been replenished by £1,250,000 in 2028/29 but may need to be topped-up for future years if additional funding is not secured. The Council will continue to make representations to the Government that the imposition of such duties should be properly funded by the Government as with any ‘new burden’.

In previous years the Transformation and Efficiency Plan (TEP) has helped to reduce the funding gap. As budgets become increasingly lean, identifying further savings is proving a greater challenge and Local Government Reorganisation (LGR) will become the overriding Transformation Programme on its own and will take significant resource to deliver. Prudent management of Council budgets combined with the Council driving ongoing financial efficiencies means RBC is in a relatively stable financial position going into increasingly challenging times. Future opportunities may arise from the use of technology and artificial Intelligence. There still remain ongoing resource intensive projects such as the exit from the East Leake Leisure Centre private finance initiative (PFI) arrangements. Whilst this may contribute significant savings of £807,000 in the three years to 2028/29 as part of the Transformation Plan the Council will still be responsible for the asset and therefore will need to fund future capital expenditure on this asset rather than the current PFI arrangement. This means an increase in earmarked reserves for leisure centres as the Council continues to invest in its assets. This constitutes good financial planning.

The Council are one of the few councils who are debt free with a reasonable level of reserves, which helps to protect against unexpected pressures. Reserves are increasing from £24,300,000 in 2025/26 to £24,900,000 by end of 2030/31 however most reserves have specifically identified uses such as for LGR which are not yet reflected in the budget and so financial risk remains significant. Recruitment and retention of staff and the potential use of agency resource along with system and process changes are heightened risks with LGR and a specific reserve has been created to mitigate such risks (£2,900,000 by March 2028). 

The budget has assumed an average inflation rate of 3%, with specific areas such as insurance and some IT contracts subject to higher rates (up to 10%) based on current renewal information. The Government uses interest rates as a key tool to contain inflation and interest rates are expected to fall to 3.25% during 2026 although there are many macro-economic factors which can influence assumptions, such as geo-political conflict. Commendably the Council remains debt free, so is not yet subject to interest costs from borrowing. As interest rates fall the interest earned on treasury investments reduces. 

The Government assumes Council Tax will be maximised at the higher of £5 or 3% in its funding assessment and this is what the MTFS assumed last year. This budget now includes a freeze on the Rushcliffe element of the Council Tax for 2026/27. This is good news for residents with a saving of £4.59 per annum as the Council recognises cost of living pressures. There are downsides to this freeze, resulting in lost income of £222,000 and £1,225,000 over 5 years MTFS period (see section 11).  Core Spending Power (CSP) is already reducing by 2.25% between 2025/26 and 2028/29 and a Council Tax freeze will increase the CSP reduction to 4.12%. With inflation at over 3% there are therefore real term pressures on council budgets. The reduction in Council Tax reduces this element of future income for this Council or a new unitary authority, whilst it is affordable now, increasing Council Tax by the maximum, is what the Government anticipates Councils will do. Not maximising Council Tax by the maximum amount impacts on financial sustainability and prudence. The Council is already in the lowest 25% of district councils for its element of Council Tax and whilst freezing Council tax is good for residents it exacerbates the gap between Rushcliffe and other districts and worsens its ability to raise future Council Tax income, one of its more stable income streams. Thus, a council tax freeze perpetuates an existing inequality within the current funding system.

Cabinet have recommended the revocation of the second homes premium given the small cohort of properties that are second homes in Rushcliffe and are therefore not convinced of its ability to assist in the supply side for more housing within the Borough. Given this potential policy change it is recommended it is reviewed by scrutiny and any recommendations to be made by Cabinet. This therefore means any decision can only take effect from 2027/28. More information is provided in Section 3.3 and Appendix 10. Any revocation will impact the Council Tax Base going forward and will be reflected in the 2027/28 updated MTFS.  

A further policy change proposed by Cabinet is to introduce a Council Tax discount for the terminally ill. A policy needs to be formulated as part of a scrutiny review to be recommended to Cabinet with the in. Again, this is covered further in section 3.3 and Appendix 10, with a £200,000 budget commitment over 5 years,

The Council will continue to focus on delivering budget efficiencies through either cost reduction or raising income. Broadly fees for discretionary services have been increased by 3.5% to recover the increase in the costs of delivering these services; however, this is also balanced with the demand for services (given cost of living pressures) and services used by the more vulnerable in our community; and other fees have been adjusted in line with market forces. 

The Council remains sustainable due to its range of income streams which have been increased to contain aforementioned inflation costs, including commercial property income and fees and charges, with a proportionate approach to generating income, therefore, despite the financial challenges, the net projected financial position over the 5 years gives a £815,000 deficit. The deficit includes two years of transition grant and by 2030 the in-year surplus is minimal.

The Council continues to invest in its assets within the borough with a 5-year capital programme of £24,300,000 so it can continue to deliver excellent services to residents. Given this commitment capital resources continue to be depleted and are estimated to be in the region of £9,200,000 at the end of the MTFS period. There remains a rising asset base, including the vehicle requirements of Simpler Recycling and acquisition of land for carbon offsetting, which places more demands on capital, revenue resources and therefore balancing the revenue budget. Schemes that are good for ‘place’, the community and economic growth are not self-financing in the same way more commercial investments maybe. Improving Rushcliffe as a place and encouraging growth, remain key priorities, as such the capital programme includes schemes which focus on the delivery of core services and supporting the more vulnerable in the Borough such as enhancements to our buildings and the delivery of funded initiatives such as Support for Registered Housing Providers, Disabled Facilities Grants (which has included in the last 12 months additional funding) and the Warm Home Scheme. Also included is £400,000 allocation for capital grants for 3G football pitch and changing room upgrades subject to applications, for the whole of the Borough. We are focused on both the present and the future so there remains sustainable growth in the borough and our main towns.  Hence there is funding for the Radcliffe on Trent Masterplan of £1,000,000 and £50,000 to support master planning work across key settlements such as East Leake and if necessary further funding will be provided for other areas such as Ruddington and Keyworth. It is important we future proof Rushcliffe, so it continues to be a great place, with a great lifestyle and great sport, irrespective of the type of local government organisation that follows.

Executive Summary

This report outlines the Council’s Medium Term Financial Strategy (MTFS) through to 2030/31 including the revenue and
capital budgets, supported by several key associated financial policies alongside details of changes to fees and charges. Some
of the key figures are as follows:

Five-year Budget Estimate

Net Surplus / Deficit

• 2026/27 - £212,200 surplus
• 2027/28 - £186,200 deficit
• 2028/29 - £923,600 deficit
• 2029/30 - £11,000 surplus
• 2030/31 - £93,200 surplus
• Total: £814,500 surplus

Table 2 Key Changes

Medium Term Financial Strategy - key figures

Category	2025/26	2026/27	Change
RBC Precept	£7,728,000	£7,843,000	£115,000
Council Tax Band D	£161.76	£161.76	£0
Council Tax Increase	2.46%	0%	minus 2.46%
Council Tax Increase Band D with Special Expenses	£182.94	£183.81	£0.87
Council Tax Increase with Special Expenses	2.99%	0.48%	minus 2.51%
Retained Business Rates	£6,676,000	£2,675,000	minus £4,001,000
Revenue Support Grant	£123,000	£4,726,000	£4,603,000
Transitional Grants	£0	£484,000	£484,000
New Homes Bonus	£1,478,000	£0

Table 3 Change in precepts - Special Expenses

Change in precepts - Special Expenses

Special Expenses	2025/26	2026/27	Change £	Change %
Total Special Expenses	£1,011,600	£1,069,300	£57,700	5.70%
West Bridgford	£64.84	£67.40	£2.56	3.95%
Keyworth	£3.21	£3.35	£0.14	4.36%
Ruddington	£3.14	£3.40	£0.26	8.28%

 

The Local Government Act 2003 introduced a requirement that the Chief Financial Officer reports on the robustness of the budget. The estimates have been prepared in a prudent manner, although it should be recognised that there are elements outside of the Council’s control. Several risks have been identified in Section 8 of this report and these will be mitigated through the budget monitoring and risk management processes of the Council.

2. Budget Assumptions

2.1

Table 4 Statistical assumptions which influence the five-year financial strategy.

Statistical assumptions which influence the five-year financial strategy

Assumed increases/inflation	Note	2026/27	2027/28	2028/29	2029/30	2030/31
Utilities	a	3%	3%	3%	3%	3%
Diesel / Fuel	b	3%	3%	3%	3%	3%
Contracts	a	3%	3%	3%	3%	3%
Pay costs increase	c	3%	2%	2%	2%	2%
Employer's pension contribution rate	d	16.70%	16.70%	16.70%	16.70%	16.70%
Return on cash investments	e	3.31%	3.25%	3%	3%	3%
Tax base increase	f	1.50%	1.80%	1.80%	1.80%	1.80%
Employer's National Insurance	g	15.00%	15.00%	15.00%	15.00%	15.00%

 

Notes to Assumptions

1. High inflation has resulted in a permanent increase in the Councils spending levels and has been built into future year budgets to ensure commitments can be met. Inflation peaked at 11.2% in October 2022, this has fallen to 3.6% as December 2025 and is expected return to the Government’s target of 2% within the MTFS period, perhaps during 2026, but this as in recent years this can soon increase based on local and global events. A standard rate of inflation of 3% for contracts has been assumed, however there is variation within this for specific contracts.
2. The majority of the Council’s fleet vehicles have now been converted to use HVO fuel. Fuel by its nature is volatile in price but we have assumed a 3% increase in future years, and we will continue to review costs over the medium term.
3. Payroll projections have increased due to upward pressure on National Living Wage and pay negotiations (also driven by inflation) which also include the agreed pay award for 2025/26 of 3.2%.
4. The Council Council has recently received the results of the latest triennial valuation of the pension fund, covering the period 2026/27 to 2028/29. The valuation shows an improved asset position, resulting in a reduction of the employer’s primary contribution rate from 18.50% to 16.70%. The estimated annual deficit payment (to meet historical pension liabilities) has also fallen for the forthcoming 3-year period from £720,000 per annum average to a £661,000 per annum average (£637,000, £661,000, £685,000 in 2026/27, 2027/28 and 2028/29 respectively).
5. Cash investment returns are based on projections consistent with the Council’s Capital and Investment Strategy. The Bank of England Base rate dropped from 4.25% in April 2025 to 3.75% in December 2025 and is expected to be 3% by the end of the MTFS period, recent UK and World events may affect this and projections can change.
6. The tax base for for 2026/27 has reduced from 1.8% to 1.5% to reflect current trend, this forecast will remain at 1.8% growth for future years in the expectation this will increase to prior levels.
7. The increase in Employers National Insurance (13.8% to 15%) and reduced threshold in 2025/26 equated to approximately £300,000 per annum. In 2025/26 the Council received a grant of £123,000 towards this increase, for 2026/27 onwards this has now been rolled into Revenue Support Grant (redistributed through the Fair Funding Review). 

3. Financial Resources

3.1 Fair Funding Commentary

The Fair Funding Review (FFR) is the Government’s overhaul of how core local government funding is distributed. It reallocates funding based on relative need and relative resources, updating formulae that determine each authority’s Baseline Funding Level (BFL) and how business rates and grants are redistributed. The Government’s updated methodology emphasises deprivation, which disadvantages more financially stable districts such as Rushcliffe. The FFR introduces a transition mechanism that prevents councils experiencing extreme year‑on‑year reductions in funding. This is achieved through a funding floor: a guaranteed minimum percentage of assessed post‑reform funding level.

When comparing income before and after the reform, the Government has confirmed that the Council will receive transition funding totalling £1,115,000 across 2027/28 and 2028/29. No transition grant will be provided beyond this period. Although the funding offers some short‑term protection against a sudden drop in income, the Council will only benefit from a 95% funding ‘floor’, whereas many other district councils will receive full (100%) protection. This difference arises from the Fair Funding Review methodology, which places significant emphasis on deprivation.

Because Rushcliffe is considered relatively financially secure, supported by prudent financial management, it receives less favourable treatment under the redistribution model. As a result, the Council is disadvantaged compared with areas assessed as having higher levels of need.

The provisional settlement announced by Government on 17 December 2025, ended the single year settlements and delivered the long-awaited business rates reset and fair funding review, the absence of which in recent years has made budget setting increasingly challenging. The final settlement was announced in February 2026 and unusually included significant change to the provisional funding announced in December. The Council will receive reduced transitional funding (£1,200,000) when compared to the provisional settlement as a result of a change to the allocation methodology although due to the lateness of the changes, 2026/27 allocations will be protected by a one-off adjustment grant. The settlement covers three years of funding allocations from 2026/27 to 2028/29, however future years are illustrative and subject to change based on a continuing annual settlement.

For district councils generally there was approximately a £150,000,000 (4.8%) total cash increase in Core Spending Power (CSP) in 2028-29 compared to 2025-26 after transitional protection. This average increase masks cash cuts for more than 50 individual district councils of which Rushcliffe is one, suffering a decrease of 2.25%. Appendix 6 shows a breakdown of funding and per head analysis which shows a reduction of 4.57% per head from 2025/26 to 2028/29. The settlement figures assume that district councils maximise their ability to raise Council Tax to referendum limits which remain at 2.99% for 2026/27. A freeze in Council tax for the Rushcliffe element in 2026/27 would increase the reduction in CSP from 2.25% to 4.12% when comparing 2025/26 to 2028/29. When setting the budget last year, reduced funding was expected and mitigated by careful planning and appropriations to reserves. 

The provisional outcome of the Fair Funding Review has allocated funding across two main streams, Business Rates Retention (BRR) and Revenue Support Grant (RSG), with some additional funding added to local authority figures through Baseline Funding Level (BFL – the amount the Government thinks we need) indexing and RSG increases. 

Homelessness, Rough Sleeping and Domestic Abuse grants are now part of the Core Spending Power and received as a single ringfenced grant with its own distribution methodology. Simpler Recycling Enhanced Producer Responsibility (EPR) payments are outside the scope of Core Spending Power and will be additional income, however it is expected that this will taper off as producers seek to reduce their levy.  

Grants previously received for New Homes Bonus and Employers NI have been rolled into the Fair Funding Assessment and redistributed under the Fair Funding Review. Confirmation on future Internal Drainage Board Funding is to be determined by Government, and they are looking at consulting on this later in the year. Currently this places an unfair expenditure pressure on the Council of £460,000 (£447,000 2025/26) which Rushcliffe taxpayers have to pay for.

This section of the report outlines the resources available to the Council: Business Rates, Council Tax (RBC and Special Expenses), Revenue Support Grant, Fees, Charges and Rents, and Other Income

3.2 Business Rates

The Business Rates reset from 1 April 2026 is part of the Government’s Fair Funding Review. The reset is long overdue and aims to restore the balance between aligning funding with need and rewarding business rate growth locally. All local authorities have been subject to an updated assessment of need and assigned new Business Rates Baselines (BRBs), Baseline Funding Levels (BFLs), and top-up or tariffs. The Government intends to deliver regular resets; however, the reset periods are yet to be determined.

The BFL has been set to the amount that Local Authorities expect to collect in 2026/27, business rates growth previously retained locally has been added to national totals and redistributed based on Fair Funding 2.0. An increased safety net at 100% of BFL, guarantees this level of funding in 2026/27 regardless of actual income. This will fall to 97% in 2027/28 and return to the usual rate of 92.5% in 2028/29, with the risk that Councils are more likely to go into safety net. 

Alongside the reset, the Business Rates tax base has been revalued for 2026/27 which removes the need to adjust for valuations in top up/tariff adjustments, however an adjustment will be required in 2027/28 for any difference between the provisional and final revaluations in March 2026 after the final settlement and this will be doubled to account for both 2026/27 and 2027/28.

Changes to multipliers have been made, the previous small and standard multipliers have been subdivided into Retail Hospitality and Leisure (RHL) and non-RHL, and a fifth multiplier created for all high value properties.  The move from the two to five-tier system is intended to ensure fairer contributions from larger operations and replaces the annual RHL relief. This means that the Council will have a larger proportion of the rates to collect from businesses rather than received through direct relief payments.

The Council ordinarily makes assumptions reflecting national experience of successful business ratings appeals. This has been built into the settlement allocation for Rushcliffe using the national average appeals percentage 3.75%, also included in the settlement figure is 0.9% allowance for bad debts. 

The Business Rates element of the Collection Fund is estimated to be in deficit by £393,000 (RBC share £157,000) at the end of 2025/26 and this will be recovered in 2026/27. 

The Nottinghamshire Business Rates Retention (BRR) Pool, operating since 2013/14, may have continued into 2026/27, but a full system reset and changes to levy and safety net arrangements mean pooling offers little benefit and carries significant risk. Growth above baseline is unlikely, most authorities will not exceed the new 10% levy, and pooling could result in substantial losses due to increased safety net payments. Scenario testing shows losses are far more probable than gains; therefore, the decision has been made by all Nottinghamshire pool participants to dissolve the existing pool for 2026/27 (Appendix 7).

 

Table 5 The forecast position on Business Rates is shown below.

Forecast position on business rates

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Retained Business Rates £'000	(£6,676,000)	(£2,675,000)	(£2,796,000)	(£2,857,000)	(£2,943,000)	(£3,031,000)
Increase / (Decrease) £'000	£1,213,000 increase	£4,001,000 decrease	£121,000 increase	£61,000 increase	£86,000 increase	£88,000 increase
Increase / (Decrease) %	22% increase	60% decrease	5% increase	2% increase	3% increase	3% increase

Retained Business Rates figures include baseline funding plus Business Rates receipts from Renewable Energy Hereditaments within the borough. 

Business Rates Projections

• 2025/26 - £6,676,000
• 2026/27 - £2,675,000
• 2027/28 - £2,796,000
• 2028/29 - £2,857,000
• 2029/30 - £2,943,000
• 2030/31 - 3,031,000

3.3 Council Tax

The Government has assumed in future funding projections that Councils will take up the option of increasing their Council Tax by the higher of 3% or £5 for a Council Tax Band D (maintained at 3% for a fourth year). The Council is required to consider Special Expenses when assessing increases against the referendum limit and ensure that together the Special Expenses and Borough increase totals the higher of £5 or 3%. When setting Council Tax, the Council’s priority is to maintain service delivery despite rising costs and to ensure adequate reserves to safeguard against unforeseen risks, however the Council acknowledges the cost-of-living challenges that residents face. Whilst maximising Council Tax is the most prudent and sustainable decision, a reduced Council Tax charge would benefit the residents of the borough during this challenging period. There is a financial impact of not maximising Council Tax increases, for example, if the Council were to increase by the full 3% this would be a total increase of £5.47, with Rushcliffe’s element £4.59 or 2.84%, by choosing to freeze Council Tax for 2026/27, income of £222,000 is foregone and this represents a loss of £1,225,000 over the 5 years.  A range of options (zero to maximum) are shown in Section 11. After careful financial analysis the conclusion is that over the 5-year period the Council is able to balance the budget with a Council Tax freeze and this would not put the Council at risk of issuing a S114 notice, considering current risks. The loss of future income will impact the new unitary authority although is not material to the overall business case. For 2026/27 it is therefore recommended that the Rushcliffe Element of Council Tax is frozen. Going forward the assumptions are to revert to the maximum increase of 2.99%. The Special Expense increases are discussed in paragraph 3.4. 

The 2026/27 tax base has been set at 48,486.30, an increase of 1.5% based upon the current Council Tax base and anticipated growth during 2026/27 (reflected in a lower increase in precept of £115,000). Thereafter it is assumed a 1.8% increase per annum. This will be reviewed as the Council looks to deliver its housing growth targets.

The overall collection fund net surplus for 2025/26 is expected to be £316,000 (RBC share £25,600) which will be distributed in 2026/27. 

Second Homes Premium

Currently 130 properties (0.23% of properties) are subject to this premium (introduced 1 April 2025). This provides for Rushcliffe around an additional £20,000 in Council Tax. Cabinet having considered the policy are not convinced it supports, with any great effectiveness, the current strategy for getting empty homes into use. Given this is a change in policy it is to be reviewed by scrutiny for Cabinet to make an appropriate recommendation. If the policy is revoked it will take effect from 1 April 2027 as part of this MTFS. The financial impact will manifest itself in future years’ tax base calculations and ultimately reduced Council Tax income. Appendix 10 provides more information.

Council Tax Discount for the Terminally ill

During 2024, Marie Curie, the UK’s leading end of life charity, published a report that explored poverty and fuel poverty at the end of life in the UK. The report identified that in 2023, 111,000 people died in poverty, more than one in six deaths registered in England, Scotland and Wales. Several Councils are starting to introduce a Council Tax discount scheme for the terminally ill. The scheme would be administered as a S13a local discount, so all costs of the scheme would be borne by Rushcliffe Borough Council. This cost may vary between £30,000 and £150,000 per year, therefore an annual budget of £40,000 has been earmarked in the budget. Over 5 years this equates to £200,000 and will increase the overall budget deficit position (which is reflected in the overall net deficit of £815,000). Prior to adoption, the proposals will be subject to scrutiny review to be approved by Cabinet.

Table 6 The movement in Council Tax, the tax base, precept and the Council Tax Collection Fund deficit are shown below.

Movement in Council Tax, the tax base, precept and the Council Tax Collection Fund deficit

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Council Tax Base (a)	47,769.80	48,486,30	49,359,10	50,247.50	51,152.10	52,072.80
Council Tax £ (b)	£161.76	£161.77	£166.96	£172.79	£178.58	£184.53
£ Annual Increase (RBC element)	£3.89	£0	£5.20	£5.83	£5.79	£5.96
% Increase (RBC element)	2.46%	0%	3.22%	3.49%	3.35%	3.34%
Gross Council Tax collected (a multiplied by b)	(7,727,300)	(7,843,100)	(8,241,200)	(8,682,300)	(9,134,600)	(9,609,200)
Increase in Precept	£308,800	£115,800	£398,100	£441,100	£452,300	£474,600
Council Tax (surplus) / deficit	£6,100	0	0	0	0	0
Council Tax including Special  Expenses	£182.94	£183.81	£189.31	£194.97	£200.80	£206.80
Annual Increase including Special Expenses	£5.31	£0.87	£5.50	£5.66	£5.83	£6.00
Percentage Increase (RBC and Special Expenses)	2.99%	0.48%	2.99%	2.99%	2.99%	2.99%

3.4 Special Expenses

The Council sets a special expense to cover any expenditure it incurs in a part of the Borough which elsewhere is undertaken by a town or parish council. These costs are then levied on the taxpayers of that area. As with previous years, special expenses will be levied in West Bridgford, Ruddington and Keyworth.

Appendix 1, summarised in Table 7, details the Band D element of the precepts for the special expense areas. Expenditure in West Bridgford has increased by £56,100, this is mainly due an increase in the annuity charge of £47,600 to cover capital works to Sir Julien Cahn Pavilion and Gamston, however this has been offset by the removal of works relating to West Park which is no longer a special expense. This results in an increase in the Band D charge of £2.56 (3.95%) or 4.9p per week. Historically, the amount collected from the precept has not been sufficient to cover actual spend, as at 31 March 2025 this deficit amounted to £184,000. Due to the use of external grant funding for some of the capital works, the surplus on the annuity collected has increased to £78,000, it is proposed to utilise this to reduce the revenue balance. Planned repayments of the revenue deficit in 2025/26 will bring this down to £90,000, but this will be subject to the year-end outturn position. Additional annuity payments of £30,000 in 2026/27 to 2028/29 will bring this to zero.

The Band D amount for Keyworth has increased by £0.14 (4.36%) and Ruddington has increased by £0.26 (8.28%), both relate to small increases in the precept due to minor maintenance works at the cemeteries. The small values give a distorted percentage increase. The budgets for the West Bridgford Special Expense area have been discussed at the West Bridgford Special Expenses and Community Infrastructure Levy group (in October 2025 and January 2026), given the more detailed nature of the budget.

 

Table 7 Special Expenses

Special Expenses

Special Expenses	2025/26 Cost	2025/26 Band D	2026/27 Cost	2026/27 Band D	2026/27 % change
West Bridgford	£991,100	£68.84	£1,047,200	£67.40	3.95
Keyworth	£10,100	£3.21	£10,600	£3.35	4.36
Ruddington	£10,400	£3.14	£11,500	£3.40	8.28
Total	£1,011,600	-	£1,069,300	-	-

 

3.5 Revenue Support Grant (RSG)

As part of Fair Funding 2.0, Rushcliffe will receive overall less Government support under the new methodology. RSG funding has been allocated for a three-year period amounting to £10,864,000 for Rushcliffe, gradually phasing out to allow the Council time to adjust to the lower levels of funding. The final two years of the MTFS have been estimated at a 3% increase. Previous grants for New Homes Bonus, Employers NI and the legacy Business Rates multiplier under indexation have been rolled into the Fair Funding assessment and redistributed as part of the Fair Funding Review. The Homelessness Grant (including Domestic Abuse and Rough Sleeping) is a separate grant which is ringfenced and therefore reflected in the net service expenditure budget. 

Table 8 Revenue Support Grant

Revenue Support Grant

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Revenue Support Grant	£123,000	£4,726,000	£3,634,000	£2,505,000	£2,580,000	£2,657,000
Increase or Decrease £	-	£4,603,000 increase	£1,332,000 decrease	£1,129,000 decrease	£75,000 increase	£77,000 increase
Increase or Decrease %	-	97% increase	30% decrease	45% decrease	3% increase	3% increase

 

3.6 Other Grants

In 2025/26 grants were received for Employers National Insurance compensation £123,000 and Minimum Funding Guarantee £101,000 and Green Plant and Machinery (Business Rates related) £17,000, as part of Fair Funding, these have been rolled into the Revenue Support Grant.  Additional grants may arise during the year in the form of New Burdens; these are unknown and not included in the budget. 

3.7 New Homes Bonus

The New Homes Bonus (NHB) scheme was intended to give clear incentive to local authorities to encourage housing growth in their areas. For the past few years one-year extensions to this payment have been awarded with £1,478,000 funding received in 2025/26. This has now been rolled into the RSG grant calculations as part of the Fair Funding Review.

Historical New Homes Bonus Payments

• 2019/20 - £1,621,000
• 2020/21 - £2,311,000
• 2021/22 - £1,633,000
• 2022/23 - £1,587,000
• 2023/24 - £1,414,000
• 2024/25 - £1,509,000
• 2025/26 - £1,478,000
• 2026/27 -

3.8 Fees, Charges and Rental Income

The Council is dependent on direct payment for many of its services. The income, from various fees, charges, and rents, is a key element in recovering the costs of providing services which accord with the Council’s principles of cost recovery. Where possible fees and charges have increased by 3.5% or more, others have increased to offset increased costs whilst in some areas price increases are limited in those areas that affect the more vulnerable (such as home alarms). 

Table 9 The Fees, Charges and Rental Income budget is shown below.

Fees, Charges and Rental Income budget

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Car Parks	(£1,228,000)	(£1,228,000)	(£1,228,000)	(£1,328,000)	(£1,328,000)	(£1,328,000)
Licences	(£334,000)	(£388,000)	(£390,000)	(£393,000)	(£393,000)	(£393,000)
Non-Sporting Facility Hire	(£160,000)	(£154,000)	(£155,000)	(£156,000)	(£157,000)	(£157,000)
Other Fees & Charges	(£966,000)	(£966,000)	(£1,007,000)	(£1,014,000)	(£1,020,000)	(£1,026,000)
Planning Fees	(£1,585,000)	(£1,386,000)	(£1,435,000)	(£1,485,000)	(£1,537,000)	(£1,591,000)
Rents	(£2,217,000)	(£2,157,000)	(£2,264,000)	(£2,268,000)	(£2,273,000)	(£2,277,000)
Service Charges	(£486,000)	(£494,000)	(£494,000)	(£494,000)	(£494,000)	(£495,000)
Crematorium Income	(£759,000)	(£857,000)	(£939,000)	(£1,026,000)	(£1,116,000)	(£1,212,000)
Garden Waste and Bins Sales	(£1,770,000)	(£1,939,000)	(£2,110,000)	(£2,285,000)	(£2,466,000)	(£2,651,000)
Total	(£9,505,000)	(£9,599,000)	(£10,022,000)	(£10,449,000)	(£10,784,000)	(£11,130,000)

Income assumptions are determined by several factors including current performance, decisions already taken and known risks and opportunities. Where possible, the MTFS has made provision for future inflationary increases in fees and charges to balance the cost of providing services whilst having regard for the local economy, service market position and the ability of residents to pay. Anticipated income from commercial property investments is budgeted to increase in-line with contractual rent reviews.

Car Parking charges – prices at Bingham and West Bridgford Car Parks were increased in 2025/26 to cover 3 years. The next increase is planned for 2028/29.

Licensing income budgets show an increase in 2026/27 from 2025/26, mainly due to bringing budgets in-line with the current trend / increases in license applications (mainly taxis). This is a cost neutral service, no assumed increase in income or expenditure has been built into later years.

Non-sporting facility hire consists of room hire at the community buildings and service charges relate to home alarms, prices and demand are market driven. The 2026/27 budgeted income is based on fees and charges and anticipated usage; this is reviewed each year.

Statutory increases in Planning Fees, which came into effect December 2023, didn’t result in income levels budgeted for due to a national decline in large applications. This has resulted in a downward base budget adjustment in income levels for 2026-27 with inflationary increases in planning fees and charges going forward.

Rent and Service charges relate to commercial property investments, increases to individual rents are made according to the leases period, there is also an element of vacancy lapse which means actual income tends to remain mostly static.

Crematorium income is budgeted to rise steadily, above the rate of inflation, over the next five years as it is now establishing itself in the market.

Garden Waste, historically increased every three years, is now increased annually by £2 per annum to balance the additional costs incurred to deliver the service. The 2026/27 budget includes an increase in charge of £5 for second and subsequent bins in addition to the annual inflationary increase. There will remain a differential of £5 from 2027/28 between first bin and two or more bins. 

3.9 Other Income

In addition to fees and charges, the Council also receives a range of other forms of income, these are summarised in Table 10 below.

Table 10 - Other Income

Other Income

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Council Tax Costs Recovered	(£305,000)	(£354,000)	(£354,000)	(£354,000)	(£354,000)	(£354,000)
Council Tax / Housing Benefit Admin Grants	(£148,000)	(£149,000)	(£153,000)	(£158,000)	(£163,000)	(£168,000)
Interest on Investments	(£1,435,000)	(£1,318,000)	(£1,284,000)	(£1,208,000)	(£1,132,000)	(£1,069,000)
Other Income	(£1,517,000)	(£1,684,000)	(£1,699,000)	(£1,719,000)	(£1,738,000)	(£1,738,000)
Recycling Credits	0	(£200,000)	(£200,000)	(£200,000)	(£200,000)	(£200,000)
Other Government Grants	(£534,000)	(£707,000)	(£777,000)	(£794,000)	(£794,000)	(£794,000)
Sub Total	(£3,939,000)	(£4,412,000)	(£4,467,000)	(£4,433,000)	(£4,381,000)	(£4,323,000)
Housing Benefit Subsidy	(£11,758,000)	(£12,103,000)	(£12,459,000)	(£12,741,000)	(£13,118,000)	(£13,118,000)
Total Other Income	(£15,697,000)	(£16,515,000)	(£16,926,000)	(£17,174,000)	(£17,499,000)	(£17,441,000)

The majority relates to Housing Benefit Subsidy (£12,103,000 in 2026/27) which is the Council’s reimbursement of the costs of the national housing benefit scheme. Over recent years the subsidy has been reduced due to the transfer of new claimants to Universal Credits, and this is expected to continue to decline over the coming years although this is offset by inflationary increases to benefits. From 2028/29 Discretionary Housing Payments income is not included as this will move to the County Council, equal and offsetting expenditure has also been removed.

Other Income mainly arises from the Leisure Contract £1,200,000 which has increased in line with inflation and improved performance at Edwalton Golf Course.

Interest from investments reflects assumptions based on balances available to invest and expected interest rates (see Appendix 9, Capital and Investment Strategy). Interest rates are expected to reduce next year, plateauing around the 3.25% rate. This, together with a drop in the amount available for investment (namely due to reserve balances and S106 and Community Infrastructure Levy (CIL) monies decline), will see interest from investments reduce year on year until 2030/31.

Recycling Credits were expected to reduce to zero from 2025/26 with the introduction of Simpler Recycling and the receipt of Extended Producer Responsibility (EPR) funding, however this has not been the case, as such the income has been added back to the budget for the remainder of the MTFS. EPR funding of £1,279,000 has been advised for 2026/27, there is a risk as funding beyond 2026/27 has not yet been confirmed and if producer habits change then the funding may well reduce. This has been reflected in the budget assumptions with funding reducing year on year (section 4.2 gives more detail).

In 2026-27, Other Government Grants consists of:

• NNDR (£119,000),
• Domestic Violence (£35,000),
• Housing Benefits Administration (£12,000), and
• Homelessness Prevention of £577,000 (increased from £360,000 in 2025/26, along with increased responsibilities).

3.10 Income Summary

Table 11 - All Sources of Income

All Sources of Income

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Retained Business Rates	(£6,676,000)	(£2,675,000)	(£2,796,000)	(£2,857,000)	(£2,943,000)	(£3,031,000)
Business Rates Pool Surplus	(£400,000)	0	0	0	0	0
Transitional Reliefs	0	(£484,000)	(£256,000)	(£859,000)	0	0
Other Grants		-	-	-	-	-
RSG Grant	(£123,000)	(£4,726,000)	(£3,634,000)	(£2,505,000)	(£2,580,000)	(£2,657,000)
Extended Producer Responsibility (EPR) Grant	(£1,407,000)	(£1,279,000)	(£1,000,000)	(£750,000)	(£600,000)	(£600,000)
New Homes Bonus	(£1,478,000)	0	0	0	0	0
Council Tax (RBC)	(£7,728,000)	(£7,843,000)	(£8,241,000)	(£8,682,000)	(£9,135,000)	(£9,609,000)
Council Tax (Special Expenses)	(£1,012,000)	(£1,069,000)	(£1,103,000)	(£1,115,000)	(£1,137,000)	(£1,160,000)
Collection Fund Surplus	(£835,000)	(£26,000)	0	0	0	0
Fees, Charges and Rental Income	(£9,505,000)	(£9,599,000)	(£10,022,000)	(£10,449,000)	(£10,784,000)	(£11,130,000)
Other Income	(£15,697,000)	(£16,515,000)	(£16,926,000)	(£17,174,000)	(£17,499,000)	(£17,441,000)
Total Income	(£45,092,000)	(£44,216,000)	(£43,978,000)	(£44,391,000)	(£44,678,000)	(£45,628,000)

 

4. 2026/27 Spending Plans

The Council’s spending plans for the next five years are shown below and include the assumptions in Section 2.

Table 12 - Spending Plans

Spending Plans

Category	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31
Employees	£16,403,000	£16,899,000	£17,753,000	£18,453,000	£18,803,000	£19,149,000
Premises	£1,763,000	£1,776,000	£1,778,000	£1,835,000	£1,903,000	£1,957,000
Transport	£1,757,000	£1,786,000	£1,965,000	£2,092,000	£2,155,000	£2,200,000
Supplies and Services	£5,212,000	£5,749,000	£5,823,000	£5,804,000	£5,930,000	£6,021,000
Transfer Payments	£11,949,000	£12,382,000	£12,753,000	£13,056,000	£13,451,000	£13,857,000
Third Party	£1,311,000	£666,000	£418,000	£343,000	£345,000	£346,000
Depreciation / Impairment	£1,895,000	£4,246,000	£4,007,000	£3,890,000	£3,890,000	£3,890,000
Capital Financing	0	£114,000	£90,000	£65,000	£52,000	£45,000
Capital Salaries Recharge	(£175,000)	(£160,000)	(£80,000)	(£70,000)	(£50,000)	(£30,000)
Gross Service Expenditure	£40,115,000	£43,458,000	£44,507,000	£45,468,000	£46,479,000	£47,435,000
Reversal of Capital Charges	(£1,895,000)	(£4,246,000)	(£4,007,000)	(£3,890,000)	(£3,890,000)	(£3,890,000)
Collection Fund Deficit	0	£157,000	0	0	0	0
Transfer to Reserves	£2,148,000	£3,398,000	£3,232,000	£3,425,000	£1,760,000	£1,686,000
Minimum Revenue Provision	£1,178,000	£1,237,000	£432,000	£312,000	£318,000	£325,000
Overall Expenditure	£41,542,000	£44,004,000	£44,164,000	£45,315,000	£44,667,000	£45,556,000

 

4.1 Explanations for some of the main movements

• Employee costs include a budgeted 3% salaries increase in 2026/27 and 2% thereafter, as well as an increase in waste collection staffing 2027/28 onward in respect of the introduction of food waste collection. These are offset by a reduction in employer pension contributions (18.5% to 16.7%) following the triennial pensions valuation.
• Premises costs include utilities which have been rebased for 2026/27 which resulted in a reduction in estimate due to actual increases in prices being less than anticipated. Both Business Rates and utilities have been budgeted for with an increase of 3% each year however the pending revaluation and multipliers are likely to impact these. 
• Transport costs show an increase over the 5-year period mainly due to increased motor insurance premiums, increased maintenance costs and the additional vehicle costs related to Simpler Recycling.
• Supplies and services have increased in-line with assumed inflation and in 2026/27 by an additional £50,000 for East Leake Masterplan. 
• Transfer Payments (Housing Benefit Rent Allowances) are assumed to increase with inflation increases to benefits; however, some level of decrease due to claimants moving to Universal Credit has been included. This will be mostly offset by Housing Benefit Subsidy which has been set accordingly see table 10. 
• Depreciation is net zero impact on the general fund (fully offset by the reversal of capital charges line)
• Capital Salaries relate to staff time spent working on capital programme schemes (mainly Property services staff), which reduce in later years due to the profiling of capital schemes.
• The Collection Fund deficit relates to £219,000 deficit arising from estimated year-end position in 2025/26. Council Tax has a small, estimated surplus of £26,000 which can be seen in table 11. 
• Minimum Revenue Provision (MRP) (predominantly repayment of the Arena) decreases in 2027/28 as this comes to an end. The final payment in relation to East Leake PFI arrangement (IFRS16 Right of use asset) is also 2027/28 and contributes to the movement.  No new debt is envisaged over the medium term, and the Capital Programme is fully funded.

 

4.2 Simpler Recycling

In October 2023 the Government announced their plans for the introduction of ‘Simpler Recycling’. Kerbside glass collection commenced in 2025/26 requiring an additional collection crew and vehicle costs, this is offset by savings on glass bank collections. Food collection is due to commence in 2027/28 and will require additional crews and associated vehicle costs. Current Revenue Support Grant is expected to fund food waste demand although it is unclear what this level of funding is and how it has been calculated.

As part of this scheme an Extended Producer Responsibility fee is levied on producers based on their product lifecycles and the type of packaging, this is passed on to Local Authorities for recycling collections as an EPR Grant. For 2026/27 this grant has been indicated to be £1,279,000. Future years have not yet been confirmed but it has been assumed that some level of funding will be received, however it is expected that this will decline as producers seek to reduce and improve packing to minimise the EPR charge. These risks to funding may place increasing pressure on the revenue budget. Table 13 below shows the estimated effect, with an overall shortfall of £1,171,000 across the 5 years. A Simpler Recycling Reserve was created to smooth the cashflows and to make provision for this shortfall.  

The revenue budget pressures are detailed below and the respective impact on employees and other operating costs are within each of the budget lines in Table 12.

 

Table 13 - Revenue Budget Pressure

Revenue Budget Pressure

Category	2026/27	2027/28	2028/29	2029/30	2030/31
Glass	£129,400	£157,500	£185,700	£189,000	£193,000
Food	0	£613,200	£1,238,100	£1,261,000	£1,286,000
Total	£129,400	£770,700	£1,423,800	£1,450,000	£1,479,000
EPR grant	(£1,279,000)	(£1,000,000)	(£1,000,000)	(£600,000)	(£600,000)
Net Budget Pressure	(£1,002,600)	(£229,300)	£673,800	£850,000	£879,000

 

5. Budget Requirement

The budget requirement is formed by combining the resource prediction and spending plans. Appendix 2 gives further detail on the Council’s five-year Medium Term Financial Strategy.

Table 14 Net Budget Position

Net Budget Position

Category	2026/27	2027/28	2028/29	2029/30	2030/31	Total
Total Income	(£44,216,000)	(£43,978,000)	(£44,391,000)	(£44,678,000)	(£45,628,000)	(£222,891,000)
Gross Expenditure	£44,004,000	£44,164,000	£45,315,000	£44,667,000	£45,556,000	£223,706,000
Net Budget Position (surplus) / deficit	(£212,000) surplus	£186,000 deficit	£924,000 deficit	(£11,000) surplus	(£72,000) surplus	£815,000 deficit

 

Table 14 shows an overall net budget deficit of £815,000 over the period of the MTFS with a largely balanced in-year budget by 2030/31. 

The overall deficit will be managed using the Organisation Stabilisation Reserve to smooth the effect of variation in net budget requirement. The budget includes Transformation and Efficiency Plan savings of £1,998,000 (Table 17) over the 5-year period. Table 15 shows the comparative figures if Council tax were not frozen, this would be a surplus position over the 5-year period of £413,000.

Planned Transfer to/from reserves include items outside of the revenue budget such as the transfer from New Homes Bonus Reserve to fund Minimum Revenue Provision (MRP). Further details can be found in Section 6. 

 

TABLE 15 Budget Requirement if Council Tax was not frozen and maximised in 2026/27

Net Budget Position

Category	2026/27	2027/28	2028/29	2029/30	2030/31	Total
Total Income	(£44,439,000)	(£44,211,000)	(£44,636,000)	(£44,935,000)	(£45,898,000)	(£224,119,000)
Gross Expenditure	£44,004,000	£44,164,000	£45,315,000	£44,667,000	£45,556,000	£223,706,000
Net Budget Position (surplus) / deficit	(£435,000) surplus	(£47,000) surplus	£679,000 deficit	(£268,000) surplus	(£342,000) surplus	£413,000 surplus

 

6. Reserves

Table 16 details the estimated balances on each of the Council’s specific reserves over the 5-year MTFS. This also shows the General Fund Balance which remains stable at £2,600,000. Total Specific Reserves projected to increase from £24,300,000 to £24,900,000 (2025/26 – 2030/31). Appendix 4 details the movement in reserves for 2026/27 which also includes capital commitments. 

A Local Government Reorganisation (LGR) Reserve has been created with appropriations of £1,090,000 transferred in from the Organisation Stabilisation Reserve, it has been increased with past in-year efficiencies leaving £2,700,000 as at 31 March 2031, however it is expected that this reserve will be largely exhausted by vesting day (start of a new Council under LGR). Expenditure is not yet profiled as the timing of costs are unknown. 

The Climate Change Reserve supports projects that contribute to the Council’s ambitions to protect and enhance the environment including the reduction of its carbon footprint. A projected balance of £816,000 is available from 2026/27 after the use of £1,500,000 to acquire land for carbon offsetting planned in 2025/26 and further measures relating to carbon offsetting of £176,000. The reserve has been increased in the latter years of the MTFS to allow for potential energy improvements to industrial units and leisure centres. Allocations from the Climate Change Reserve will be made as projects get approved and this will be affected by LGR in later years. Existing capital schemes are assessed for any carbon reduction measures and funding from the reserve allocated. The Council continues to look at avenues of external funding to support carbon reduction initiatives (such as at its leisure centres); and if successful these will be reported via Cabinet and Corporate Overview Group and Climate Change scrutiny reviews, in their financial updates.

The Simpler Recycling Reserve is used to smooth the shortfall between EPR government grants and expenditure on both capital and revenue Simpler Recycling schemes (glass and food waste) this reserve has been topped up in 2028/29 to protect against any variance to assumptions of grant income (section 4.2 provides more information).

A Vehicle Replacement Reserve exists to support the acquisition of new vehicles, plant, and equipment. Additional waste collection rounds following Simpler Recycling require an increase in the number of waste vehicles, an annual allocation has been increased from £185,000 to £685,000 to provide for this. 

A total of £2,000,000 has been added to the Leisure Centre Maintenance Reserve over four years to cover any upgrades required to maintain existing centres and to allow for any works required under the transition of East Leake Leisure Centre from PFI into the leisure management contract and therefore the responsibility of the Council.

The Treasury Capital Depreciation Reserve (currently £1,300,000) exists to mitigate the potential losses of reductions in the capital value of the Council’s multi-asset investments. These assets provide a relatively large proportion of the Council’s total investment income but are however at-risk due to fluctuations on market value linked to adverse impacts on the economy of global conflict. There is currently a statutory override in place until March 2029 mitigating risk until 2029/30. 

The New Homes Bonus reserve stands at £8,383,000 on 1 April 2026; no further income is expected as this grant has now been rolled into Fair Funding Assessment. In 2026/27 this reserve will be used to fund MRP, Empty Homes Compulsory Purchase Orders, Grants for Football Facilities and Radcliffe on Trent Masterplan. A further £50,000 is earmarked for economic development masterplanning, in particular for East Leake and if necessary further funding will be appropriated, if required, for other key settlement areas such as Ruddington and Keyworth. This is now included within Growth and Economic Development line of Appendix 2. 

The Elections reserve is built up each year to meet the cyclical cost of borough elections. With LGR the next election is anticipated for the shadow authority in May 2027. 

It is important that the level of reserves is regularly reviewed to manage future risks. Although the reserves balances appear healthy at £24,900,000 as at 31 March 2031, it should be noted that most reserves have specifically identified uses with spend to be identified and profiled. The Organisational Stabilisation Reserve protects the Council against any future unforeseen expenditure and risks. The release of reserves will be regularly reviewed to balance funding requirements and the potential need to externally borrow to support the Capital Programme, although not anticipated during the period of the MTFS. Being prudent, we need to ensure we do have future funds to deliver capital projects, and we aim to top up reserves from any in-year revenue efficiencies identified. 

It is the professional opinion of the Council’s Section 151 Officer, that the General Fund Reserve position of £2,600,000 is adequate given the financial and operational challenges (and opportunities) the Council faces.

 

Table 16 - Specific Reserves

Specific Reserves

Category	Balance 31.03.26	Balance 31.03.27	Balance 31.03.28	Balance 31.03.29	Balance 31.03.30	Balance 31.03.31
Investment Reserves	-	-	-	-	-	-
Regeneration and Community Projects	£3,625,000	£2,534,000	£2,358,000	£2,081,000	£721,000	£280,000
Sinking Fund - investments	£569,000	£649,000	£449,000	£564,000	£764,000	£964,000
Corporate Reserves	-	-	-	-	-	-
Organisation Stabilisation	£6,359,000	£6,411,000	£6,486,000	£5,436,000	£5,873,000	£5,530,000
Treasury and Capital Depreciation Reserve	£1,310,000	£1,310,000	£1,310,000	£1,310,000	£1,310,000	£1,310,000
Climate Change Action	£816,000	£531,000	£481,000	£1,223,000	£1,790,000	£2,357,000
Flood Grant and Resilience	£22,000	£22,000	£22,000	£22,000	£22,000	£22,000
Simpler Recycling Reserve	£965,000	£1,685,000	£1,902,000	£2,862,000	£2,786,000	£2,710,000
Vehicle Replacement Reserve	£460,000	£845,000	£1,225,000	£1,610,000	£2,115,000	£2,500,000
LGR Reserve	£1,090,000	£2,014,000	£2,938,000	£2,862,000	£2,786,000	£2,710,000
Risk and Insurance	£100,000	£100,000	£100,000	£100,000	£100,000	£100,000
Planning Appeals	£340,000	£340,000	£340,000	£340,000	£340,000	£340,000
Elections	£151,000	£201,000	£8,000	£83,000	£158,000	£233,000
Operating Reserves	-	-	-	-	-	-
Planning	£85,000	£85,000	£85,000	£85,000	£85,000	£85,000
Leisure Centre Maintenance	£33,000	£498,000	£1,013,000	£1,528,000	£2,000,000	£2,015,000
Total Excluding NHB Reserve	£15,925,000	£17,225,000	£18,717,000	£19,722,000	£19,692,000	£19,646,000
New Homes Bonus	£8,383,000	£6,144,000	£5,770,000	£5,596,000	£5,422,000	£5,248,000
Total Earmarked Reserves	-	-	-	-	-	-
General Fund Balance	£2,604,000	£2,604,000	£2,604,000	£2,604,000	£2,604,000	£2,604,000
Total	£26,912,000	£25,973,000	£27,091,000	£27,922,000	£27,718,000	£27,498,000

 

7. The Transformation Strategy and Efficiency Plan

Since 2010, the Council has successfully implemented a Transformation and Efficiency Plan (TEP), to drive change and efficiency activity to deal with the scale of the financial challenges the Council faces, currently inflation pressures and potential changes to the system of local government finance. An updated TEP (and dovetails with previous Government requirements for a Productivity Plan) is provided in Appendix 7. The Executive Management Team, alongside budget managers, have undertaken a review of all Council budgets resulting in savings which have been fed into the MTFS. The TEP focuses on the following themes:

• Service Efficiencies
• Thematic Reviews
• Additional Income

This Programme will form the basis of how the Council meets the financial challenge summarised at Appendix 5. The below demonstrates that by 2030/31 with £1,998,000 of efficiencies, a £2,800,000 deficit over 5 years results in  net  surplus of £815,000.

Table 17 - Savings Targets

Savings Targets

Category	2026/27	2027/28	2028/29	2029/30	2030/31
Gross Budget Deficit excluding Transformation Plan	£6,832,000	£7,956,000	£9,216,000	£8,462,000	£8,584,000
Cumulative Savings in Transformation Plan	(£6,658,000)	(£7,044,000)	(£7,770,000)	(£8,292,000)	(£8,473,000)
Gross Budget Deficit / (Surplus)	£174,000 deficit	£912,000 deficit	£1,446,000 deficit	£70,000 deficit	£111,000 deficit
Additional Transformation Plan Savings	(£386,000)	(£726,000)	(£522,000)	(£181,000)	(£183,000)
Net Budget Deficit / (Surplus)	(£212,000) (surplus)	£186,000 deficit	£924,000 deficit	(£11,000) (surplus)	(£72,000) (surplus)

 

The Council’s budget for 2026/27 and beyond includes the impact of inflationary increases whilst also being restricted by Government policy on commercial activity to generate additional income, limiting borrowing for wider projects dependent upon capital spending proposals and excluding borrowing from the Public Works Loan Board (PWLB) where capital spend is solely for commercial gain. The Council has continued to review its services and processes and, where possible, identify efficiencies and increase income. 

The Council maintains an ongoing annual review of its current transformation projects. The initiatives and efficiency proposals scheduled for delivery from 2026/27, outlined in Appendix 5, primarily stem from renegotiating the Leisure Strategy provision. Identifying additional savings within already lean budgets remains challenging, particularly given inflation and with Local Government Reorganisation (LGR) leading to significant change. Consequently, the Council’s capacity to undertake new large-scale projects such as Rushcliffe Oaks and Bingham Arena, which significantly contributed to savings is now limited. The Council will continue to deliver projects as demonstrated by the Capital Programme and technological developments such as Artificial Intelligence (AI), may offer future efficiency savings and improvements to customer experience. LGR will be a substantial transformation project, and resources will be directed towards this increasingly as the Council, as expected, approaches 1 April 2028 and ceases to operate in its current form. 

8. Risk and Sensitivity

The following table shows the key risks and how we intend to treat them through our risk management practices. Further commentary on the higher-level risks is given below the table.

Key risks

Risk	Likelihood	Impact	Action
Central Government policy changes e.g Fairer  Funding, ceasing NHB and Business Rates  reset leading to reduced revenue; or  increased demand on resources for example  environmental policy changes with regards to  waste will create future financial risk  (Extended Producer Responsibility (EPR) and weekly food collections); changes to DFG  allocations.	Medium	Medium	Engagement in consultation in policy creation and communicating to senior management and members the financial impact of changes via the MTFS. Budget at baseline plus renewables for  business rates in years of uncertainty. Inclusion  of demand and / or income in the MTFS and  Capital Programme and calculations to  understand the impact of any proposals
Impact on resources to transition to a new  authority as part of LGR	High	High	Engage in relevant working groups and report  back to Cabinet or Full Council. LGR reserve created.
Lifespan of this MTFS likely to be curtailed, for  example 2027/28 could be the last year for this  Borough Council’s budget	High	High	To update the MTFS in future years and report  to Full Council
Environmental carbon reduction and bio-net  diversity gain (BNG) commitments leading to  greater pressure on revenue and capital  budgets	High	Medium	Climate Change Reserve being replenished (including for potential land acquisition for  carbon reduction), ongoing review of significant  projects and outcome of scrutiny review. A  vehicle replacement reserve which will help  fund, for example, electric vehicles. Apply for  external funding where possible
The Council is unable to balance its budget and the budget is not sustainable in the longer term as a result of increased inflation and other risks	Medium	Medium	S151 Officer s25 Statement which is presented with the budget. Going concern report presented to Governance Group to confirm that the Council has sufficient reserves to withstand the short-term financial shocks. Budget set to include latest assumptions on inflationary increases.

 

The Council recognises there are upside risks in maximising opportunities. The risks above can change depending on changes in the services as a result of TEP projects or other changes to the environment, particularly legislative.  The Council maximises income generating opportunities and efficiencies wherever possible, so it remains self-sufficient and continues to grow the Borough and provide excellent services.

The MTFS presents a net deficit of approximately £815,000 over the 5-year period and the Organisation Stabilisation Reserve will be used to smooth the impact of fluctuations in income and new expenditure. Reserves are necessary to ensure the Council can continue to deliver services to its residents and to protect the Council from risks in relation to funding uncertainty and rising costs. The expectation is LGR will be within the lifespan of this MTFS and a reserve has been created to support the costs associated with transition, although upfront costs of LGR are to be determined once we know which unitary option is chosen and thereafter the operating model. 

 

9. Capital Programme

9.1 Setting the Capital Programme 

Officers submit schemes to be included in a draft Capital Programme, which also includes on-going provisions to support Disabled Facilities Grants (DFGs) and investment in Social Housing. This draft programme is discussed by Executive Management Team (EMT) along with supporting information and business cases where appropriate with the big projects and the overall fiscal impact reported to Councillors in budget update sessions. Seismic projects normally involving capital acquisition, will also be reported separately to Cabinet for approval. The draft Capital Programme continues to be further refined and supported by detailed appraisals as set out in the Council’s Financial Regulations. These detailed appraisals are included at Appendix 3 along with the proposed five-year capital programme which is summarised at Table 19. This remains an ambitious programme totalling £24,300,000 for 5 years, although the programme is diminishing as resources reduce and therefore the likelihood of borrowing increases.

9.2 Significant Projects in the Capital Programme

The Council’s five-year Capital Programme shows the Council’s commitment to deliver more efficient services, improve its leisure facilities, enable economic development and be more environmentally sustainable. Against a background of financial challenge, with both inflation pressures and the perilous state of public finances, the strength of the Council’s financial position is such that it continues to support economic growth and sustainable excellent services in the Borough. The Programme is approved for the five-year period and allows flexibility of investment to enhance service delivery, provide widened economic development to maximise business and employment opportunities. The programme is reviewed by Full Council as part of the budget setting process. A major focus of the Capital Programme is to improve services, be transformative and generate revenue income streams to help balance the Council’s MTFS. Significant projects in the Capital Programme include:

1. £605,000 is included in the programme for enhancements to the Council’s portfolio of Investment Properties. This investment ensures that we have high quality lettable retail and business units capable of delivering a robust revenue income stream thereby supporting economic development. Cost of enhancements on Investment Properties are met from the Investment Property Reserve.
2. A provision of £1,000,000 has been included for the Radcliffe-On-Trent Masterplan for the acquisition of land or property, to include professional fees and costs of any contract works (to be reported to March 2026 Cabinet).
3. A provision of £500,000 remains for West Bridgford Town Centre Regeneration, to help ‘pump prime’ a larger initiative with public sector partners, such as pedestrianisation of Central Avenue.
4. The on-going vehicle replacement programme totals £6,100,000 over 5 years. This includes provision for investment in additional vehicles to accommodate new legislation to provide kerbside food recycling – estimated expenditure on food recycling totals £1,600,000 with expected government grants totalling £1,200,000, the balance to be met from the Simpler Recycling Reserve. The vehicle replacement programme will be subject to future review as consideration is given to transitioning to electric/hybrid vehicles.
5. The provision for Support to Registered Housing Providers has benefitted significantly from Planning Agreements monies arising from Land North of Bingham £3,800,000. This sum, together with the balances of other Planning Agreement monies and capital receipts set aside for Affordable Housing gives a total provision available of £3,700,000. Options for commitment of these monies continue.
6. £1,700,000 over the 5 years for investment in the upgrade of facilities at Leisure Centres and other Leisure Sites (Gresham, Lutterell Hall, and Toothill School). There are planned refurbishments to changing villages; floor replacement; roof enhancements; and upgrades for plant and lighting. Schemes are considered in the light of the Leisure Strategy and are aimed at maintaining excellent standards of leisure provision.
7. £400,000 has been included in the programme to offer grants to third party sporting organisations to develop football facilities in the Borough as part of the Football Foundations Local Facilities Plan. This has been split equally between 2026/27 and 2027/28, however this maybe accelerated or slipped dependant on the timing of demand.
8. £1,000,000 is included in the programme to facilitate delivery of Warm Homes Grants to assist residents to improve the energy efficiency of their properties. This scheme is fully funded by Government Grant.
9. £750,000 has been included in the programme to support the Compulsory Purchase of Empty Homes. The aim is to dispose of such properties in a back-to-back transaction to generate capital receipts to cover the acquisition costs. It is expected there will be some costs incurred that will not be recovered as part of the sale.
10. Disabled Facilities Grants (DFGs) provision of £4,500,000 has been provided in the 5-year programme. This is based on MHCLG award letter for 2025/26, it includes £150,000 allocation from revenue underspends. Funding has become extremely tight to meet the statutory spending requirement, and Rushcliffe had to take the unusual step of allocating £700,000 of its own resources to support spending pressures, this is not sustainable. Cabinet and Senior Officers have actively lobbied Central Government and Local Authorities across Nottinghamshire for additional and redistributed Better Care Fund (BCF) grant allocations. This has resulted in the government announcing a further £50,000,000 funding for DFGs in January 2026. It is estimated RBC’s share will be £65,000 although it is not certain this funding will be available in future years. The government have also announced a review of the way DFG funding is allocated to Local Authorities and this is due to be published later this year. Rushcliffe’s future BCF spending plans are no longer able to support discretionary DFGs, Assistive Technology (Home Alarms) or the Warmer Homes on Prescription scheme. This will be reviewed in the light of additional grant monies made available.
11. Rolling provisions for the Information Systems Strategy (£1,300,000 across the 5 years) will ensure that the Council keeps pace with innovative technologies, protects itself against cyber-attacks and continues to modernise services and deliver ‘channel shift’ in an increasingly virtual world.
12. £425,000 has been included across the 5 years to enhance Play Areas in West Bridgford on a rolling programme. These costs are subject to the West Bridgford Special Expense.
13. A Contingency sum of £100,00 has been included each year, to give flexibility to the delivery of the programme and to cover unforeseen circumstances.
14. Given the projected level of the Council’s cash balances at March 2026 and future years and LGR, external borrowing is unlikely to be needed in the medium term. The cash flow balances are strongly underpinned by the holding of Developer Contributions: S106s and CIL monies. It is anticipated that the Council will not need to borrow internally either to finance the Capital Programme. The projected Capital Financing Requirement (CFR - the Council’s underlying need to borrow) reduces from is £8,400,000 at the end of 2025/26 to £5,400,000 at the end of 2030/31. The timing and incidence of internal/external borrowing will be affected by any slippage in, or additions to, the capital programme, delayed capital receipts, and cash balances and this is reflected in the CFR shown at table 2 of the Capital and Investment Strategy (Appendix 9).

9.3 Five-year capital programme, funding and resource implications

Table 19 - Capital Programme 2026/27 to 2030/31

Capital Programme 2026/27 to 2030/31

Category	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate	2030/31 Estimate	MTFS 5 Year Total
Expenditure Summary	-	-	-	-	-	-
Development and Economic Growth	£1,470,000	£450,000	£765,000	0	0	£2,686,000
Neighbourhoods	£5,143,000	£3,923,000	£3,377,000	£4,410,000	£2,953,000	£19,806,000
Finance and Corporate Services	£485,000	£330,000	£330,000	£330,000	£330,000	£1,805,000
Total	£7,098,000	£4,703,000	£4,472,000	£4,740,000	£3,283,000	£24,296,000
Funded By	-	-	-	-	-	-
Usual Capital Receipts	£325,000	£625,000	£315,000	£915,000	£435,000	£2,615,000
Government Grants	£2,224,000	£1,733,000	£870,000	£870,000	£870,000	£,6,567,000
Earmarked Reserves	£4,549,000	£1,928,000	£1,670,000	£1,975,000	£1,978,000	£12,100,000
Grants and Contributions	0	0	0	0	0	0
Section 106  and CIL Contributions to Affordable Housing Projects	0	£417,000	£1,617,000	£980,000	0	£3,014,000
Borrowing	-	-	-	-	-	-
Total	£7,098,000	£4,703,000	£4,472,000	£4,740,000	£3,283,000	£24,296,000
Capital Resources	-	-	-	-	-	-
Opening Balances	£15,008,000	£12,070,000	£11,820,000	£10,951,000	£9,578,000	-
Projected Receipts	£4,160,000	£4,453,000	£3,603,000	£3,367,000	£2,875,000	-
Use of Resources	£7,098,000	£4,703,000	£4,472,000	£4,740,000	£3,283,000	-
Balance Carried Forward	£12,070,000	£11,820,000	£10,951,000	£9,578,000	£9,170,000	-

 

9.4 Capital Funding Resources

The Council’s capital resources are slowly being depleted to fund the Capital Programme. It is projected that capital resources will be in the region of £9,200,000 at the end of the five-year life of the Programme. This comprises: £7,900,000 Earmarked Capital Reserves; £500,000 Capital Receipts; and £800,000 S106 contributions. The level of Capital Receipts will increase slightly by repayment of loans by third parties but will only significantly increase if major assets are identified for disposal in the future. The Council continues to review its asset base and the potential for asset disposal.

Capital receipts expected over the course of the MTFS include:

• £552,000 in repaid loan principal from Nottinghamshire County Cricket Club
• An estimated £50,000 per year from the Right to Buy Clawback agreement which gives the Council a share of Preserved Right to Buy arrangements following Large Scale Voluntary Stock Transfer in 2003 (A change to Government Policy which reduces the discount percentage applied to Right to Buy Sales should increase the amount the Council receives from any future sales, however the change may cause a reduction in the number of sales and this cannot be predicted).

The following significant capital grants and contributions will be used to support the funding of the proposed capital programme:

• £3,000,000 from Planning Agreements for off-site affordable housing. £2,600,000 of this comes from a new S106 for Land North of Bingham
• £1,157,000 government grant awards under EPR to fund Simpler Recycling for food waste.
• £1,060,000 funding via the East Midlands Net Zero Hub to deliver Warm Home Grants.
• An estimated £870,000 per annum from the Better Care Fund to deliver Mandatory Disabled Facilities Grants.

9.5 Future Capital and Principles

We have projected forward the impact on capital resources of spend on core capital such as property, vehicle and ICT replacement and ongoing DFG pressures and by 2040 the reserves will be depleted.  Given prospective LGR future capital spend will be the preserve of a new local authority.

The Council has always been mindful of the fundamental principles of good capital and treasury management namely ensuring we remain prudent, and it is both affordable and sustainable (i.e. the revenue consequences are built into our plans). This in line with the CIPFA Codes on Treasury and Capital management. The Council is not afraid to borrow but this must be done in a sensible and manageable way and not put Rushcliffe’s future financial and operational future at risk. Before we borrow, we will always look at utilising the Council cash balances, external funding (grants) and capital receipts as more sensible options and other factors such as the timing of loans and pervading interest rates. If a capital scheme is required that does not pay for itself and this is a corporate objective, then financial budget will be required from elsewhere, and this must be demonstrated prior to any approval. We will continue to be sensible even with the spectre of LGR and continue to adopt good professional practice and governance. The following are guiding principles that we are now following regarding the budget, to ensure the risk of the budget being unsustainable is reduced:

• Where possible individuals that use facilities should pay for them
• Maximise income where we can and ensure costs are recovered
• Focus on reducing discretionary expenditure
• Those that own assets are responsible for their maintenance
• Continue to identify budget expenditure efficiencies
• Maximise the use of Council assets
• Defer borrowing for as long as possible and ensuing costs (using cash, balances, reserves, additional capital receipts and external funding where possible), with individual schemes having robust business cases
• Capital projects should be considered within the context of LGR to ensure activity supports the future direction of the Council. 

10. Treasury Management

Attached at Appendix 9 is the Capital and Investment Strategy (CIS) which integrates capital investment decisions with cash flow information and revenue budgets.  The key assumptions in the CIS are summarised in the following table:

Treasury Assumptions

Category	2026/27 Estimate	2027/28 Estimate	2028/29 Estimate	2029/30 Estimate	2030/31 Estimate
Anticipated Interest Rate	3.31%	3.25%	3.00%	3.00%	3.00%
Expected Interest from Investments (£)	£1,263,100	£1,235,200	£1,163,300	£1,091,900	£1,033,900
Other Interest	£54,400	£48,800	£44,300	£39,900	£35,200
Total Interest (£)	£1,317,500	£1,284,000	£1,207,600	£1,131,800	£1,069,100

 

The CIPFA Treasury Management and Prudential Codes includes guidance on existing commercial investments, reference to Environmental, Social and Governance (ESG) in the Capital Strategy, quarterly monitoring of Prudential Indicators, Investment 
Management Practices (IMPs) and the Liability (or Asset) Benchmark. 

The CIS covers the Council’s approach to treasury management activities including commercial assets. It documents the spreading of risk across the size of individual investments and diversification in totality across different sectors. The Council primarily focusses on maximising the returns from its existing portfolio with no new commercial investments included in the Capital Programme.  The Council undertakes regular performance reviews on its commercial assets with the next review due to be reported to Governance Scrutiny Group in June 2026.  

 

11. Options

As part of its consideration of the budget, the Council is encouraged to consider the strategic aims contained within the Corporate Strategy and, in this context, to what extent they wish to maintain existing services, how services will be prioritised, and how future budget shortfalls will be addressed.

Instead of freezing Council Tax as proposed (see 3.2), the Council could choose to increase by the 3% assumed by central government or increase by a lower amount. Table 21 sets out the budget impact of applying the maximum 3% Council Tax increase each year (equivalent to a £4.59 rise for Rushcliffe in 2026/27, or 2.84%), compared with several alternative scenarios: a one‑year tax freeze in 2026/27 (recommended); a two‑year freeze in 2026/27 and 2027/28 followed by 3% increases; and annual uplifts of 2% or 1%. The proposed option to freeze Council Tax in 2026/27 leads to around £222,000 of lost income in 2026/27 and £1,225,000 over five years, compared with applying a 3% increase each year Freezing for two years would increase this to £2,329,000 over the 5-year period. Income foregone against other options when compared with a council tax freeze as detailed in the table below.

 Table 21 - Alternative Council Tax Levels

Alternative Council Tax Levels

Option	2026/27	2027/28	2028/29	2029/30	2030/31	Total
Option 1: Freeze for 2026/27 (Band D £183.82 - Rushcliffe element £161.77), and 3% per annum thereafter (Recommended Option)	(£8,913,000)	(£9,345,000)	(£9,797,000)	(£10,272,000)	(£10,769,000)	(£49,913,000)
Option 2: Freeze for 2 year (2026/27 Band D £183.82, 2027/28 Band D £184.11 - Rushcliffe element  for both years £161.77), and 3% per annum thereafter	(£8,913,000)	(£9,088,000)	(£9,528,000)	(£9,990,000)	(£10,473,000)	(£47,992,000)
Option 3: 3% uplift per annum (Band D £188.41 - Rushcliffe element  £166.36)	(£9,135,000)	(£9,578,000)	(£10,042,000)	(£10,528,000)	(£11,038,000)	(£50,321,000)
Option 4: 2% uplift in 2026/27 and 3% per annum thereafter	(£9,070,000)	(£9,509,000)	(£9,970,000)	(£10,453,000)	(£10,959,000)	(£49,961,000)
Option 5: 1% uplift in 2026/27 and 3% per annum thereafter	(£8,992,000)	(£9,427,000)	(£9,884,000)	(£10,362,000)	(£10,864,000)	(£49,529,000)

 

Council Tax Difference - Based on Options

Difference	2026/27	2027/28	2028/29	2029/30	2030/31	Total
Freeze 2026/27 versus 3% per annum	(£222,000)	(£233,000)	(£244,000)	(£256,000)	(£269,000)	(£1,225,000)
Freeze 2026/27 versus 2%  2026/27 and 3% per annum thereafter	(£157,000)	(£165,000)	(£173,000)	(£181,000)	(£190,000)	(£865,000)
Freeze 2026/27 versus 1%  2026/27 and 3% per annum thereafter	(£79,000)	(£82,000)	(£86,000)	(£91,000)	(£95,000)	(£433,000)
Two year freeze versus 3% per annum	(£222,000)	(£490,000)	(£514,000)	(£539,000)	(£565,000)	(£2,329,000)

Other than the above options for Council Tax increases there are no alternate proposals concerning the Budget, Medium Term
Financial Strategy or Transformation Strategy.