Agenda item

To receive a presentation from the RFO on the Council’s Revenue Budget and the options relating to how it can be funded; the desirable level of Precept/Council Tax Band D equivalent so that the final budget can be calculated for adoption at the Extra Ordinary Council date to be confirmed.

The Council received and considered a presentation from the Responsible Financial Officer (RFO), together with his verbal explanation, which summarised the budget-setting process of the Council to date.

The presentation provided a summary of the current financial outlook for the Council and set out three draft proposals for funding the budget for 2026/27. These proposals were based on the outcomes of discussions from the previous cycle of Committee meetings, during which each Committee had outlined its anticipated requirements.

Members were advised of several factors outside of the Council’s control which could impact future financial planning, including increases to the Council’s insurance long term agreement, geopolitical events, and changes to national and international policy.

Members received an update on the progress of the West Witney Projects and were informed of the potential options available should the overall project come in under the initial budget. The Council was pleased to hear of the work being undertaken by Officers to monitor expenditure closely and to identify and deliver cost savings.

The Council also heard of the continued diligent work of Officers to trim and reduce costs where possible across all other areas of the Council’s spending. An explanation was provided on the purpose of earmarked reserve accounts, details of which were provided at the meeting, and the options available for their utilisation to enable spending in other priority areas. The RFO emphasised that decisions to remove or amend budget lines were matters for the Council, rather than for the RFO.

The Chair thanked the RFO for his presentation, a sentiment echoed by other Members. A lengthy discussion followed with all Members who wished to speak being given the opportunity to do so.

Members discussed the potential impact of different levels of increase to the precept. It was noted that while some Members expressed a desire for a 0% rise above inflation, there was also concern that failing to increase the precept at this stage could result in compounded and more significant increases in later years.

Members were informed that Café 1863 turnover had increased by approximately 18%; however, it was recognised that future increases were likely to be more modest as daytime trade in particular, was nearing capacity. Reference was made to the business plan, including potential ideas to protect and grow alcohol sales.

During the discussion, a request was made by a Member for further information to enable fuller consideration prior to a final decision being taken. The Mayor highlighted the significant work and achievements delivered by the Council during 2025 and suggested that the budget-setting process presented an opportunity to promote these successes to residents.

In concluding the discussion, the RFO summarised that he had taken the overall steer from Members that a Council Tax increase should sit between inflation (using the most appropriate measure) and 5%.

It became clear that the majority of Members favoured either option two or three of the presented budget proposals. It was therefore agreed that these two options, which differed by £2.20 over the course of the year for a Band D property, be explored further by the RFO.

The Council agreed that the decision to formally set the level of increase to the precept would be made at an Extraordinary Council Meeting to be held on 2 February 2026.

Resolved:

1. That the Responsible Financial Officer refine the budget calculations to reflect an increase in the Council’s precept for the financial year 2026/27, resulting in an increase of approximately £8 to £10 for a Band D property; and,

2. That a final decision on the level of precept be made at the Extraordinary Council Meeting scheduled for 2 February 2026.