Agenda item

To consider the initial financial plan proposals set out in the Executive report and appendices for the Executive meeting on 6 January 206 as attached.

In considering theinitial financial plan proposals 2026/27 to 2028/29 to be published for public comments over the next six weeks, the Executive Member for Corporate Services thanked the Chief Financial Officer and staff for completing the proposals and presented the initial financial plan proposals.

The Executive Member referred to:

- the re-structuring of Local Government in Devon within the next few years, but that it is important that a high standard of financial management is maintained and to continue acting in the best interests of residents;

- the current annual survey asking the public what they consider what the council should prioritise for the coming year. Responses will be reported to members for consideration with the final budget proposals.

- The financial backdrop for Local Authorities continues to be very   challenging.

- Teignbridge has received the provisional financial settlement for the next three years.

- Teignbridge do not qualify for some of the new funding streams that the Government have announced.

- Although the projected budget deficit has reduced since last year and is now forecast to be £1.1m in 2026/27 and £900K in 2027/28 we continue to be faced with increased costs and are having to look at different ways to run our services.

- The work on implementing the proposals set out in Modern 25 Programme needs to continue. 

The proposals include draft revenue and capital budgets for the three years 2026/27 to 2028/29, and represents a balance between the Council’s desire to improve services that the people of Teignbridge need and deserve and the financial restrictions that it faces.

The main issues taken into account are:

• The level of council tax and the proposal to increase it by £6.05 (2.99%).
• Reducing central funding and the need to make ongoing efficiencies using invest to save where possible.
• Maintaining 100% council tax support.
• The ongoing impact of economic conditions on income streams and changing Government funding.
• Continuing to react to the climate change emergency by maintaining ongoing budgets for a climate projects officer and associated spending in revenue and provision in the capital programme, including ongoing provisions for corporate decarbonisation schemes as per 5.5.
• A £3 million provision for employment sites funded by borrowing.
• Authority for Executive to exceed the approved overall revenue budget by up to £200,000 per 4.25 of the agenda report.
• Support for housing – the Homes4Teignbridge initiative including £7,243,317 for the Sherborne House Car Park social rented flats and further purchases supported by the Local Authority Housing Fund (see 5.3) whilst backing business and bringing people and organisations together for local neighbourhood planning.
• Infrastructure delivery plan investment funded by community infrastructure levy (CIL) and external sources where available (see 5.4 of the agenda report);
• Continuation of grant-funded South West Regional Coastal Monitoring Programme as per 5.6 of the agenda report.
• Town Centre investment in infrastructure and employment as per 5.7
• Revenue contributions to capital being maintained at £1,500,000 per annum for 2026/27 and £500,000 thereafter.
• Councillor’s Community Fund set at £1,000 each.
• Providing additional 4% inflationary funding to voluntary group grants
• The level of general reserves necessary for the council as per 4.22 – recommended at £2.6 million for 2025/26.
• Estimated revenue budget gap of £1.1m in 2026/27 and £0.9m in 2027/28 and ongoing gaps (before use of remaining earmarked reserves) and action required to address this from established working groups informing Overview & Scrutiny on work to reduce the gap (see 4.26of agenda report).

In considering the proposals the Committee raised the following issues and comments:

-        The projected budget deficit reduction since last year, forecast to be £1.1m in 2026/27 and £0.9m in 2027/28 is welcomed.

-        It is noted that a report will be presented to Council on 24 February 2026 for consideration on a Community Match Fund, and the proposed £800k over 4 years to support town and parish projects which are in accordance with a Community Infrastructure Plan is welcomed and should match funding/CIL funds be given to areas of Teignbridge falling within the DNP area where developers are not required to pay CIL monies.

-        Concern regarding the proposed increase in Sunday car parking charges as detrimental to the economy and active living.

-        £3million provision for employment infrastructure, to create new spaces for jobs and local enterprise was commented on given the previous underspend. 

-        The investment in the provision of Council owned 1 and 2 bed units is welcomed.

-        To have sight of the policy statements to see how these relate to the budget.

It was proposed by Councillor C Parker, seconded by Councillor J Taylor and

unanimously,

RESOLVED

The issues and comments raised above be referred to the Executive to consider when discussing the final budget proposals at its meeting 10 February 2026.