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Councillor Langdon-Morris Cabinet Member with responsibility for Resources and Value for Money to introduced report ES-2714 which related to the General Fund Budget and Council Tax Report 2026/27.
The 2026/27 budget had been balanced by using £2.7m from reserves and built on the core principles of sound financial management, value for money, and long term sustainability.
In 2025 the Government announced significant national reforms of local government funding with effect from April 2026. The coming year would bring the first multi year Local Government Finance Settlement in a decade. The stability comes with major reforms that would change how councils are funded.
Key changes to funding included:
• A nationwide reset of business rates baselines – the first since 2013.
• A new funding formula more strongly linked to deprivation.
• Removal of the rural and sparsity adjustments, and current bespoke formulae and adjustments for flood defence and coastal protection, and reduced weight for visitor numbers, all of which disadvantage districts like ours.
For East Suffolk, the reforms mean that—unlike many areas—the Council have not benefited from additional resources. In fact, it was among a group of around 50 district councils that face a -5% cash floor rather than the 0% floor allocated to most authorities.
More significantly, the late change to the Final Local Government Settlement on 9 February has resulted in a £3.5m annual loss of funding from 2027/28 for the Council. The Council was protected for 2026/27 by a one off Adjustment Support Grant, but beyond that, the gap reopens sharply.
Councillor Langdon-Morris highlighted that the late change to the National Settlement created major pressures for the years ahead, widening budget gaps and increasing financial risk. As referenced in the Section 151 Officer’s report, without firm action, the Council could face difficult scenarios. The clear advice was that the council must drive efficiencies, boost income, and reduce costs to secure long-term sustainability and safeguard frontline services.
Councillor Langdon-Morris emphasised that whilst a balanced budget for 2026/27 was being presented, the outlook from 2027/28 onwards was extremely challenging. The forecast budget gaps were:
• £12.3m in 2027/28
• £14.1m in 2028/29
• £25.2m in 2029/30
The figures illustrated a structural challenge that cannot be solved by efficiencies alone. The ending of transitional support in 2028/29 created a £5.6m drop in funding resources.
There were also additional pressures which included:
• Rising service demand
• National economic uncertainty
• Inflationary pressures
• The cost of delivering major capital and regeneration programmes
• Anticipated costs from Local Government Reorganisation (LGR).
Councillor Langdon-Morris stated it was therefore essential that the Council now begin to prepare to navigate the next three years.
The Cabinet, the Corporate Leadership Team, and Finance Officers had already set out the actions required for the next budget cycle, including:
• Maximising income, including Fees & Charges aligned to cost recovery.
• Reviewing capital projects to ensure deliverability and reduce revenue pressure.
• Targeted service efficiencies, including through East Suffolk Services Ltd.
• Reviewing earmarked reserves, recognising that they cannot be relied upon to plug structural gaps.
• Maximising external funding opportunities, a key part of our regeneration and economic strategy.
The Council would need to make clear, strategic decisions in the coming year to ensure financial resilience through 2027/28 and beyond. Councillor Langdon-Morris highlighted that despite challenges, East Suffolk continued to lead the way in the following areas:
Climate and Environment
Funding the Cycling & Walking Strategy, supporting community energy and delivering on our Net Zero commitments.
Housing and Communities
Investing in homelessness prevention, temporary accommodation, and supporting vulnerable residents through initiatives such enable community grants, community hubs and the Ease the Squeeze programme.
Thriving Towns and Economy
Continuing to deliver major regeneration in Lowestoft, Leiston, and Felixstowe, and create opportunities for young people, and support tourism—a sector worth £680m to the district. For 2026/27. The development of new Small Community Investment Fund.
Councillor Landon-Morris concluded that the budget protected today while preparing for tomorrow. It reflected prudent leadership, fiscal responsibility, and a commitment to local residents—but it also issues a clear warning: without continued Government support in 2027/28 and 2028/29, the financial sustainability of districts like East Suffolk would be under real pressure. The Council would continue to make that case nationally, while doing everything within its control locally to safeguard services and deliver on its ambitions. Councillor Langdon-Morris thanked the finance team for all of their support and work on a rapidly changing financial landscape.
Councillor Topping stated that she was proud of the Cabinet Members and recognised that a number of the GLI group had never been Councillors before. Councillor Topping was proud of the group’s transparent, collaborative and cross-party approach to being in Administration. Councillor Topping recognised a number of groups, projects and Boards which the Council were supporting. The Councillor noted that she had made the Chair of Overview and Scrutiny a member of opposition and thanked Councillor Deacon for his ongoing work as Chair of that committee. Councillor Topping thanked all members for the work that they do.
Councillor Lynch referenced p325 figure 16 and the importance of addressing the future challenges now. The Councillor recognised that the budget was balanced but was done so using reserves. Councillor Lynch queried where savings would be made and did not think the required savings could be achieved by efficiencies alone, querying what would be cut in the longer term.
Councillor Ewart raised that given the reputational impact of enforcement cases and the general increase in planning enforcement cases, would there be an uplift in the budget and if not how would it be funded. Councillor Langdon-Morris responded that the Head of Planning and Building Control would be able to provide a response to the question.
Councillor Byatt echoed concerns regarding future funding and the impact of LGR. The Councillor queried if there was consideration to build up reserves in case there was a change of course to LGR. In addition, Councillor Byatt asked if there were discussions regarding potential efficiencies and economies of scale taking place in preparation for there being the three unitaries Council had opted to support.
Councillor Ashton discussed efficiencies and the discussions that had started to take place. The Councillor acknowledged that financial pressure had been building which had been exacerbated by government decision making. Councillor Ashton recognised that running the Council was not ultimately sustainable in the current financial climate and that there was work happening on to address it. The Councillor stated that some efficiencies could be managed through the normal movement of people within the organisation. There would be requirements to look at fees and charges and possibly council tax in the future. Ultimately the Council would be looking seriously at all of the things it does. There were also lots of discussion with ESSL regarding phased efficiencies which were required to be delivered in the next year.
Councillor Ashton referenced Councillor Ewart’s earlier question and stated that planning enforcement was not a resource issue, but a legalisation issue. The enforcement process could be challenging and lengthy. There would need to legislative change to take away some of the challenges in effective planning enforcement.
Councillor Ashton concluded that the Council was hoping to achieve lots and was looking at AI / customer service and experience. The Councillor was delighted with the data dashboards which could be taken forward through LGR. There was a lot happening with Assets team and it was hoped that there will be future announcements for innovation in utilising the power parks. Councillor Ashton was proud of the work being achieved.
Councillor Mallinder stated that whilst the Council was managing the books there was a risk of losing sight of what makes the district unique and exceptional. The Councillor referenced the Council Tax increase, the impact on residents and that the Council should give more in return. Councillor Mallinder felt there was a lack of clear funding for biodiversity and that projects needed to be delivered. The Councillor commented that the roll out of ‘Better Recycling’ was a difficult challenge for elderly community members. Councillor Mallinder stated that the Council needed to refocus and offer value for money, building on what makes East Suffolk wonderful. Councillor Mallinder concluded that he would not support the recommendations as they did not support residents.
Councillor Beavan urged members to support the recommendations and to bring any issues forward to be discussed. Councillor Bevan urged members not to be afraid of investing into new things, such as how AI could support the work the Council does.
Councillor Whitelock outlined several projects and initiatives including the decarbonisation of leisure centres, Ease the Squeeze and the Community Help Hub. Councillor Whitelock commented on the cross party working taking place through Community Partnerships as well as other groups and committees which was something to be celebrated.
Councillor Noble noted the work taking place in the environment portfolio including the water quality project, implementation of the tree strategy, with trees already being planted. There was work taking place under Nature at Work and the cross-party Environmental Task Group which continues to meet regularly. Councillor Noble commented on the membership of the group and attendance.
Councillor Folley added that there was fantastic work taking place and queried if basic services were being delivered in the way residents would expect. Councillor Folley questioned if there was anything that the Council could be looking to lower to ensure that basic services were fulfilled.
Councillor Wilson was confused with tone that the Administration was not doing enough - or doing too much. There was a great deal of work taking place. The Council was the first local authority to step out and be the first movers on a landscape scale recovery programme, the work on the tree strategy, work with Green Light Trust, decarbonisation – which was funding the Council achieved to be able to deliver the work. Councillor Wilson referenced the work undertaken with PortHealth, the Developers Charter, Marmot Place investment, managing the energy projects among many other projects and initiatives. Councillor Wilson welcomed the speech made by Councillor Jepson speech earlier in the meeting and that there was an on-going internal question of ‘are we doing enough’ and that any Councillor should ask themselves the same question as highlighted in Councillor Jepson’s speech. Councillor Wilson concluded that he hoped Councillors would take away the list of work he had highlighted with a sense of pride.
Councillor Langdon-Morris thanked Overview and Scrutiny and Audit and Governance Committees for their work reviewing the budget. The Councillor thanked the finance team and recognised challenges ahead. There would be ongoing work to scrutinise costs, negotiations and partnership working. There would be a review of assets, fees and charges along with an efficiency programme with ESSL. Councillor Langdon-Morris concluded that there would exploration of how to engage further in technologies to promote efficiencies.
The vote was required to be a recorded vote. The Monitoring Officer conducted the vote, and 46 Members present voted in favour of the General Fund Budget and Council Tax Report 2026/27. Councillors present and voted ‘for’ were Councillor Ashdown, Ashton, Back, Beavan, Bennett, Byatt, Candy, Cawley, Ceresa, Clery, Daly, Deacon, Fisher, Folley, Gee, Gooch, Graham, Green, Hedgley, Jepson, Keys-Holloway, King, Langdon-Morris, Leach, Lynch, McCallum, Molyneux, Ninnmey, Noble, Packard, Parker, Pitchers, Plummer, Reeves, Smith, Robinson, Rumble, Smith-Lyte, Smithson, Speca, Starling, Thompson, Topping, Wakeling, Whitelock and Wilson.
Councillors present and ‘abstained’ from voting was Councillor Ewart. Councillor Mallinder voted against.
On the proposition of Councillor Beavan seconded by Councillor Langdon-Morris it was by majority vote
RESOLVED
That Full Council:
1. Considered the Chief Financial Officer’s report attached at Appendix L
2. Approved the Medium Term Financial Strategy for 2026/27 to 2029/30, including the proposed General Fund Revenue Budget for 2026/27; and forecast budgets for 2027/28 to 2029/30 as set out in Appendix C to E;
3. Approved the movements to and from earmarked reserves and the General Fund Balance for 2026/27 to 2029/30 as presented in Appendix G;
4. Approved the items to be treated as special items in 2026/27 – the precepts by Town/Parish Councils and parish meetings;
5. Approved a Band D Council Tax for East Suffolk Council of £197.82 for 2026/27, an increase of £5.67 (2.95%);
6. Approvedno changes to the Council’s discretionary policy for Council Tax Discounts and Premiums for 2026/27 as set out in paragraphs 2.79 and 2.80;
7. Granted the Chief Finance Officer and Section 151 Officer delegated authority to award any further Council Tax Reliefs in 2026/27 arising from Government announcements under these powers;
8. Approved the Pay Policy Statement set out in Appendix J;
9. Approved the Council Tax Resolutions in Appendix K;
10. Approved the Flexible Use of Capital Receipts Strategy attached as Appendix I;
11. Approved the award of rate reliefs under the Supporting Small Business (SSB) scheme using its discretionary relief powers under section 47 of the Local Government Finance Act 1988 as amended, as set out in paragraphs 2.56 to 2.60;
12. Approved the award of rate relief for Pubs and Live Music Venues using its discretionary relief powers under section 47 of the Local Government Finance Act 1988 as amended; as set out in paragraph 2.61;
13. Approved the award of rate relief for eligible Electric Vehicle Charging Points and Electric Vehicle only forecourts (EVCP relief) using its discretionary relief powers under section 47 of the Local Government Finance Act 1988 as amended, as set out in paragraph 2.62;
14. Granted the Chief Finance Officer and Section 151 Officer delegated authority to award any further business rate reliefs in 2026/27 arising from Government announcements under these powers.