To present to Council, the Executive’s General Fund budget proposals for 2026/27.

Further to Minute 103 of the meeting of the Cabinet held on 30 January 2026, the Council considered the Executive’s General Fund budget and Council Tax proposals for 2026/27.

 

It was reported that, at its meeting held on 30 January 2026, Cabinet had considered an updated position, that had remained based on the previously approved approach, which had reflected several changes due to additional information becoming available or where associated work had been finalised for inclusion within the budget. The same report had also acknowledged that there were several outstanding items at that time, including the outcome from the Government’s business rate reforms / ‘reset’.

 

Council was informed that the outstanding items referred to above had now been completed with the latest forecast for 2026/27, as set out in Appendix A to the report of the Cabinet (A.1). The forecast ‘gap’ for 2026/27 of £0.995m, that had been reported to Cabinet in January, had been revised down to £0.370m.This change was largely due to finalising figures associated with the changes to business rates along with adjustments to the use of the Corporate Investment Fund – Revenue as part of the ongoing approach of balancing the use of this fund with the Forecast Risk Fund.

 

Members were made aware that Appendices B and C set out the Net Savings and Cost Pressures respectively. Those remained unchanged from the same appendices considered by Cabinet on 30 January 2026.

 

As recommended by Cabinet on 30 January 2026, the Executive’s budget proposals set out a Band D Council Tax of £205.48 in 2026/27, an increase of 2.99% (£5.96), with a Council Tax requirement of£11.244m.

 

Taking into account the changes to the budget required since Cabinet met on 30 January 2026, the total net General Fund revenue budget for 2026/27 was £25.852m, along with a General Fund capital programme totalling £1.570m.

 

Members were reminded that the budget recommended by Cabinet for consideration by Full Council included only the District and Parish elements of the Council Tax rather than those from the major precepting authorities. The formal approval of the ‘full’ Council Tax levy for the year, including the precepts from Essex County Council, Police and Fire, was delegated to the Human Resources and Council Tax Committee which was due to meet on 2 March 2026.

 

Council was cognisant that, at the time of publishing the agenda for this meeting, the Final Local Government Finance Settlement had been still awaited. A recommendation had therefore been included within report (A.1) to enable the budget to be updated accordingly once confirmation was received.

 

Council was advised that, as introduced as part of the report to Cabinet on 19 December 2025 and further developed within the report to Cabinet on 30 January 2026, a number of obligations had been placed on the Council and its Statutory Officers as part of the Government’s on-going Local Government Reorganisation reforms for Greater Essex. Although subject to further review over the year, the initial in-principal approach proposed was set out within report A.1, which was intended to form the basis of the Council’s reasonable and balanced financial response to meet its potential obligations to an incoming Unitary Council.

 

The Leader of the Council (Councillor M E Stephenson) made the following budget statement:-

 

“Tonight marks an important moment for this Council. We are two years away from the creation of a new unitary authority, and the decisions we make now will shape the services and support that residents rely on long after this Council has ended. Before I set out our plans and the proposed budget for 2026/27, I want to talk about what we have achieved together and why it matters so much at this point in our journey.

 

Too often, Tendring is spoken about only in terms of challenges. We all know the headlines about deprivation, health pressures, and the needs of our coastal and rural communities, but those headlines never tell the full story. They miss the hard work of our officers, the partnerships, the innovation, and the clear improvements that have taken place over recent years and they miss the impact this Council has made on people’s lives.

 

So tonight, I want to start with what we have delivered for residents, because it shows who we are, what we stand for, and why our approach to financial management and planning is so important.

 

I’ll start with health. While it is not a recognised function of a district council, last year we helped deliver one of the most significant health projects anywhere in the country: a new diagnostic hospital, created in partnership with our local NHS. This facility now delivers around 140,000 diagnostic appointments every year, enabling faster access to tests, shorter waiting times, and reduced pressure on our acute hospitals. And we did not stop there. This year, we have gone further by committing £2 million to demolish and rebuild Clacton’s Urgent Treatment Centre, with multiple outpatient clinics based above. It is expected to be delivered this April. That is real, meaningful impact.

 

We continue to invest in our mental health hubs in primary schools across the District recognising how it gives young people the tools they need to cope with modern day pressures. These hubs have been highlighted nationally as an example of innovation and good practice, and they continue to improve the lives of children and families across Tendring.

 

Our Family Solutions Workers continue to make early interventions that help prevent families from reaching crisis. These roles reduce future reliance on statutory services, but most importantly, they support people at the right time and before things reach breaking point.

 

We have eliminated the use of Bed & Breakfast accommodation for families who become homeless. Instead, families get safer and more stable options, helping them rebuild their lives with dignity and support.

 

Our award?winning Sunspot development in Jaywick continues to deliver. Running at 110%, all thirty?one new business units are fully occupied, supporting local entrepreneurs with some now making the brave move to bigger premises. For a community too often spoken about negatively, it is a sign of confidence, talent, and ambition and how we are helping people build opportunities close to home.

 

Our focus on health, employment and deprivation has contributed to a 4.7% improvement in Tendring’s Health Index—one of the most meaningful long?term indicators of community wellbeing.

 

One of the things I am proud of is our Sport and Activity Strategy. Through that the strategy the Council has secured more than £3.2m of external investment to deliver five new sport and activity facilities across the District, including four new Playzones and a new Ride and Play facility at Clacton Leisure Centre, giving children, families and communities more opportunities to be active close to home. Alongside this, we have secured over £1.2m from the Government’s Salix programme for a new heating system at Clacton Leisure Centre, and £94k from the Swimming Pool Support Fund to support major upgrades at Walton on the Naze Lifestyles. Together, this funding will improve the quality and reliability of local leisure facilities and help ensure they continue to meet the needs of residents now and into the future.

 

We continue to take forward major regeneration projects, funded through Levelling Up and Capital Regeneration Grants. These projects will support jobs, strengthen our town centres and coastal areas, and help build the local economy for years to come.

 

All of this shows something important: we do not wait for others to fix problems for us. We face challenges head?on, we work with partners, and we deliver change. And we do all of this with one of the lowest council tax levels in the country, just £199.52 a year for a Band D property. That is £3.84 a week. For many households, that is less than the cost of a takeaway coffee. Yet it pays for the essential services our residents rely on every single day such as waste collection, street cleaning, grass cutting, carparks, public toilets, housing services and leisure centres to name a few.

 

As we look ahead to the next two years, it is vital that we continue this approach. We must continue to protect frontline services, support vulnerable households, and maintain the stability that residents and businesses need, especially at a time when many are finding life difficult.

 

Our financial context is not simple. We face the same pressures felt by other councils across the country, but coastal areas like ours face added challenges. Jaywick remains the most deprived neighbourhood in England. Several areas across Clacton, Harwich, Walton and our rural communities are among the most deprived nationally. That reality should have been reflected in the Government’s Fair Funding Review.

 

But it wasn’t. Despite deprivation being highlighted as a key factor in how local government funding should be allocated, the outcome leaves us with reduced funding in real terms. We also received a late change to the settlement for 2026/27 and 2027/28, making us worse off. The Government will provide a one?off grant to cover the gap in 2026/27, but currently there is no guarantee for 2027/28. That could leave us £280,000 short.

 

However, because of the strong financial stewardship of this Council, we are not blown off course. Our two?year plan and 2026/27 budget maintain stability, protect services, and put us in the right position for Local Government Reorganisation.

 

Our approach is backed by the assurance of our Section 151 Officer and by our External Auditor, whose independent findings are being considered by the Audit Committee this week. That independent assurance matters. It gives our residents confidence that their Council is well?run, financially responsible, and planning ahead.

 

As we move into the transition to a new Unitary Council, our responsibility is clear. Government guidance states that existing councils must not take decisions that disadvantage or limit the choices of the new authority. We take that seriously. Our two?year plan provides transparency, stability and a strong financial position for the new organisation that will take responsibility for our District from April 2028.

 

For residents, this plan means:

 

• no sudden changes to essential services
• continued support for vulnerable households
• investment in leisure, green spaces and community facilities

 

For businesses, it means:

 

• stability in planning, environmental health and other core services
• continued regeneration of town centres and coastal areas
• improvements to the infrastructure that supports the local economy

 

To strengthen our financial resilience further, we have created two new Corporate Investment Funds—one for revenue and one for capital. These funds will allow us to respond flexibly to pressures and invest where needed, without putting day?to?day services at risk.

 

Our savings plan totals £1.956 million, all of which can be found in Appendix B of the report, and most importantly, these savings do not cut essential services. This sets us apart from authorities that rely on speculative savings that may never materialise, a practice that often leads to deeper problems later.

 

We have faced rising costs in areas such as homelessness, inflation, and contract pressures, but we have acted early and decisively. We have put extra funding into homelessness support, including preventative work and temporary, safe accommodation. We are investing in our assets based on clear condition surveys, making sure our buildings remain safe and functional and we continue to invest in our wider priorities and in the capacity, we need to deliver reliable services.

 

As I mentioned before, we face unique responsibilities as a coastal district, from port?health duties to coastal protection. These are essential services, and they add pressure that inland areas simply do not face.

 

On council tax, we are continuing our long?standing approach by proposing a 2.99% increase. The new Band D charge will be £205.48, an increase of just £5.96 for the year or 11p a week, a small amount for what residents receive in return. It helps us protect services now, while avoiding deeper problems in the future.

 

Our capital programme continues to focus on what matters most:

 

• upgrading leisure centres and community buildings
• maintaining safe, welcoming public buildings
• modernising IT so services stay reliable

 

Recent changes to how we deliver disabled facilities grants will mean more money reaches residents more quickly, a clear example of us leading the way and doing the right thing for local people.

 

Our regeneration and investment projects are also part of a bigger picture. They support residents, attract visitors, encourage business growth and send a clear message that Tendring is a place with potential and ambition.

 

To summarise, our two?year plan and proposed budget strengthen our commitment to:

 

• protecting frontline services
• supporting vulnerable households
• regenerating towns and coastal areas
• improving health and tackling inequalities
• supporting skills, jobs and business growth
• providing the stability needed for Local Government Reorganisation

 

Our achievements over recent years show what is possible when partnership working, financial discipline and a focus on residents come together. The diagnostic hub, Sunspot, mental health hubs, regeneration projects, and improvements in health outcomes all demonstrate the positive difference we can make.

 

With this budget, we continue that work. We protect services, support local people, and prepare a strong foundation for the new Unitary Council. We leave behind a legacy of good stewardship, responsible planning, and a culture that puts residents and businesses first.

 

I commend this budget to Full Council.”

 

It was moved by Councillor M E Stephenson that the recommendations, as set out on pages 18 and 19 of the Council Book, be approved.

 

In addition to Councillor Stephenson, Councillors P B Honeywood and I J Henderson addressed the Council on the subject matter of Councillor Stephenson’s motion.

 

Given that Councillor P B Honeywood’s speech had mentioned the lease of Christopher Jones’ House in Harwich, Councillors Calver and Fowler declared an Interest insofar as they were both Trustees of the Harwich Society who were the tenants of Christopher Jones’ House.

 

The Leader of the Council, Councillor M E Stephenson, undertook to give a written response to Councillor P B Honeywood as there were commercially sensitive matters pertaining to the lease of Christopher Jones’ House.

 

In relation to the Carnarvon Terrace regeneration project which Councillor P B Honeywood had also mentioned in his speech, the Portfolio Holder for Economic Growth, Regeneration and Tourism, Councillor I J Henderson, responded that a report on this matter was due to be submitted to the next formal meeting of the Cabinet.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, as reflected within Council Procedure Rule 19.5 of the Council’s Constitution, a named vote on Councillor Stephenson’s motion was taken.

 

That vote resulted as follows:

 

Councillors For	Councillors Against	Councillors Abstaining	Councillors Not Present
Baker Barrett Barry Bensilum Bray Bush Calver Casey Chapman BEM Codling Davidson Doyle Fairley Fowler Goldman Guglielmi I J Henderson J Henderson Keteca Morrison Newton Oxley Scott Smith G L Stephenson M E Stephenson Sudra Talbot Thompson Wiggins	None	Alexander Amos A I Cossens M A Cossens Griffiths P B Honeywood S A Honeywood Land Platt Skeels	Davis Everett Ferguson Harris Kotz Placey Steady White

 

Councillor Stephenson’s motion was declared CARRIED and it was therefore:-

 

RESOLVED that, having had regard to the Chief Finance Officer’s (Section 151 Officer) report on the Robustness of Estimates and Adequacy of Reserves in accordance with the requirements under Section 25 of the Local Government Act 2003, and having taken account of any responses to the budget consultation process, the Council approves the 2026/27 budget proposals (based on a 2.99% (£5.96) Band D council tax increase for district services) and agrees that:

 

i)         the total General Fund net revenue budget for 2026/27 be set at £25.852m (a council tax requirement of £11.244m excluding parish precepts);

 

ii)    the General Fund capital programme be approved totalling £1.570m in 2026/27;

 

iii)    the detailed General Fund budget for 2026/27, as set out in Appendix E to report A.1;

 

iv)   the calculation of the Council’s Council Tax requirement, Special Expenses and Parish/Town Council precepts, as set out at Appendix G to report A.1;

 

v)    the Council Tax for District and Parish/Town Councils’ services, as at Appendix J to report A.1 and that these are the amounts to be taken into account for the year in respect of the categories of dwellings listed in different valuation bands;

 

vi)   subject to the above, if budget adjustments are required such as those necessary to reflect the Final Local Government Finance Settlement and the late notification of other external / grant funding, then in consultation with the Corporate Finance and Governance Portfolio Holder, the Council’s Section 151 Officer be authorised to adjust the base budgets accordingly with no net impact on the overall budget or capital programme set out above; and

 

vii)     the Council’s and Statutory Officers’ obligations to a successor Unitary Council as part of the current LGR proposals, including those that are expected to emerge within legislation / associated structural orders along with the Council’s proposed in-principle response as set out within the main body of this report A.1, be acknowledged.