Agenda item

To pass the following resolution:-

 

RESOLVED:-

 

1)     That the following, as submitted, be approved:

 

(a)   the Revenue estimates for 2026-2027;

(b)   the Capital programme for 2026-2027;

(c)   the Fees & Charges for 2026-2027;

(d)   the Treasury Management Strategy for 2026-2027;

(e)   the Prudential indicators for 2026-2027 (incorporating the Minimum Revenue Provision Statement); and

(f)     the Capital Strategy for 2026-2027

 

2)     that it be noted that, at the meeting of the Executive on the 16 December 2025, the Council calculated the figure of 40,186, as its council tax base for the year 2026-2027 in accordance with the Local Authorities (Calculation of Council Tax Base)(England) Regulations 2012 made under Section 33(5) of the Local Government Finance Act 1992;

 

3)     that the following amounts be now calculated by the Council for the year 2026-2027 in accordance with Sections 31A of the Local Government and Finance Act 1992:-

 

(a)   £XX being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2)(a) to (f) of the Act;

 

(b)   £XX being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3)(a) to (d) of the Act;

 

(c)   £XX being the amount by which the aggregate at (3)(a) above exceeds the aggregate at (3)(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its council tax requirement for the year;

 

(d)   £XX being the amount at (3)(c) above divided by the amount at 2 above, calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its council tax for the year.

 

(e)   Valuation Bands

 

 

                                                                                   

Being the amount given by multiplying the amount at (3)(d) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

4)     That it will be noted that, for the year 2026-2027, Devon County Council, the Office of the Police and Crime Commissioner for Devon and Cornwall and the Devon and Somerset Fire and Rescue Authority have stated the following amounts on precepts issued to the Council, in accordance with Section 83 of the Local Government Act 2003, for each of the categories of the dwellings shown below:-

 

Devon County Council

 

 

 

Office of the Police and Crime Commissioner for Devon and Cornwall

 

 

 

Devon and Somerset Fire and Rescue Authority

 

 

5)     That, having calculated the aggregate in each case of the amounts at (3)(e) and (4) above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby set the following amounts as the amounts of council tax for the year 2026-2027 for each of the categories of dwellings shown below:-

 

Valuation Bands

 

 

Standing Order 30

Members are asked to note that a recorded vote is required to approve the budget and to set the Council Tax in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014. Standing Order 30 refers.

 

 

 

 

The Leader moved and Councillor Wright seconded, the resolution as set out in the agenda and circulated papers in respect of the Council Tax and the budget for Exeter for 2026/27.

 

In moving the resolution, the Leader proposed, and Councillor Wright seconded additional wording to the resolution:

 

(1)   On 27 January 2026 the Licensing Committee:

RESOLVED unanimously that the Licensing Committee recommends the following:

That Council approves for the period from 1 April 2026 to 31 March 2027 that the fees shall be set as specified in Appendix B.

 

Minutes of the above meeting have been published and will be received by Council on 3 March.

 

These fees can be found on pages 228-230 of the agenda pack and form part of the budget before you today.

 

(2)   That the following, as submitted, be approved:

(a)   the Revenue estimates for 2026-2027 with an additional budget added of £130,000 for tidying, cleaning and improving the public realm, to be funded from the General Fund Working Balance.

 

Councillor Moore proposed, and Councillor Rees seconded, the Green Group amendments to the budget in the following terms:

 

Green Group Budget Amendment 2026

To reduce the General Fund Surplus by £255,000 the Council’s already agreed minimum of £3.1m.

 

To fund:

1.     Securing Community Assets – a community Asset Transfer programme:

As part of the Local Government Reorganisation programme undertake a review of Council assets (property and land) to identify property which has previously been, currently is in or suitable for community ownership and community benefit.

To ensure that community assets can be protected and improved by the Council and communities ahead of LGR, to enable a programme of Community Asset Transfer (CAT) upon request and in line with the Councils CAT policy (adopted 2022), to support local (appropriated constituted) community organisations take on assets in Exeter’s neighbourhoods and secure them for the long term as community owned and run assets.

The programme would provide revenue funds for capacity building for the organisations and funding expertise (e.g. Surveyors, business planning); and small capital grants to act as ‘first funder in’ to underpin and attract external capital funding for the project or fund the Council to undertake essential and urgent repairs to the building before disposal.

Disposal may include all the methods that the Council has used to date, including: freehold sale at less than best consideration (allowed under government guidance), long leases at less than best consideration or peppercorn.

Note: It is noted that the approach might generate some capital receipts - which can be used to continue the programme (revenue or capital).

The programme will be funded as follows:

Revenue grants: £155,000 reduction to General Fund min reserves levels.

Capital funding: An amount, allocated from the non-neighbourhood portion of the Community Infrastructure Levy, to be decided by the Executive once the review has been complete.

 

2.     Nature Towns and Cities Accreditation:

The Accreditation demonstrates a “commitment to transforming green infrastructure to benefit people, place and nature. By achieving the award, you’ll have shown that you have good leadership, are involving and engaging communities and building effective partnerships. Together, you will have developed ambitious plans to improve the natural infrastructure of your town or city. You will also have considered how to secure funding and developed new ways to deliver with communities and partners.”

This budget amendment will help support the proposal to seek accreditation and address feedback in the budget consultation for more support for parks and greens spaces.

The proposal is to fund infrastructure (beyond play equipment which has separate budget), support gardening (vs ‘maintenance’), planting (for plants - noting the separate tree budget), and fund community groups that are, or wish to, get involved in the accreditation to undertake this work.

Revenue funding £50,000 from a reduction to the General Fund minimum reserves level.

 

3.     Adapting to our changing climate:

To develop an adaptation and resilience action plan for the City of Exeter (not just Council services) which involves communities and partners in practical action.

This will sit alongside the Net Zero 2030 City Council’s Carbon Action Plan being developed by the Net Zero Project Board and help partners and communities really consider the impacts of the changing climate on communities. The Council attends Devon, Cornwall and Isles of Scilly Climate Impacts Group (Climate Impacts Group - Devon Climate Emergency) meetings, which discuss climate resilience and adaptation.

The work will facilitate the co-development of a resilience and adaptation action plan and access to technical expertise to identify risks and how they can be reduced or managed. There needs to be a big emphasis on working with communities for this work to be effective. Community engagement can, in part, be covered by some of the £120k budget already identified in the budget book.

Funded by £50,000 adjustment to General Fund minimum reserves level.

 

In presenting the Green Group’s budget amendments, Councillor Moore made the following points:

• all aspects of the proposal were aligned with the Council’s policies and priorities;
• these were based on proposals from the Customer Focus Scrutiny Committee;
• the Council already had a policy on Community Assets and this would help move it forward;
• working alongside the community was necessary for a long-term and viable future;
• the parks and green spaces in Exeter were much loved and valued;
• the climate crisis was happening now and had already been recognised in the draft Local Plan;
• it was necessary to work with businesses and communities; 
• nature based solutions were needed to deal with the increases in rain and temperature; and
• the General Fund could be used and the minimum level was at the higher end for a Council.

 

During debate Members made the following comments:

• the UK Government Adaptation Research Framework had made it clear that climate change was already challenging and the challenges were increasing;
• the ability to adapt was critical and widespread action was needed for climate resilience;
• work needed to be done with communities to strengthen their response;
• £50,000 to the Parks and Open Spaces Team was completely in line with the Council’s policies and strategies;
• this was a win-win amendment with lasting outcomes;
• unusual was becoming usual because of climate change; and
• a pivot to adaptation was common sense.

 

In seconding the amendments, Councillor Rees made the following points:

• she was delighted to have completed the first full round of budget scrutiny;
• scrutiny was an evolving process that would hopefully be strengthened;
• the Strategic Director of Corporate Resources had welcome amendments from Members of the Customer Focus Scrutiny Committee;
• these discussions should be collaborative across all parties;
• these amendments supported wider council strategy and that was the spirit in which these proposals were made; and
• this amendment was not in opposition or contradictory in any way.

 

Councillor Moore responded to comments made in the debate, stating that it would be good to hear more debate on this matter as the issues raised were important for the residents, and there were only two years left for this Council to make these changes.

 

The Leader, as mover of the original motion, replied to the amendment, making the following comments:

• no one could disagree with the spirit of the amendments;
• there was a lack of detail in the amendment; and
• he would address the issues raised later in the meeting.

 

Councillor Michael Mitchell raised a point of clarification regarding Standing Order 30 and was advised by the Lord Mayor that this was not applicable when voting on an amendment.

 

Following a vote the amendment was NOT CARRIED.

 

Councillor Michael Mitchell proposed, and Councillor Palmer seconded, the Liberal Democrat Group amendments to the budget in the following terms:

 

2026/27 Budget Amendments proposed by the Liberal Democrat Council Group

Supporting local communities.

 

1.     In addition to support with office costs, a grant of £50,000.00 to support Citizens Advice Service whilst it develops alternative income sources and works to integrate with any proposed Unitary Authority structure implemented in Devon.

To negotiate a contract based on savings to Council because of CA’s work to bring in additional money to the council e.g. rents and council tax and other bad debts.

The cost of this grant to be met in in 2026/27 from General Reserves.

2.     HMOs – to review and adjust fees to ensure the service breaks even and provide support to improve standards in the HMO sector.

 

3.     The council is requested to investigate a city-wide voluntary licensing scheme for properties in the rented sector. The scheme should aim to be self-financing.

 

In proposing the amendments Councillor Michael Mitchell made the following points:

• he was disappointed that the Council would be raising the Council Tax by the maximum allowed;
• the original business rate amounts were embedded in the budget;
• the elections would still be held on 7 May, so this was in many ways a temporary budget;
• the Liberal Democrat group only wished to make one minor change to the proposed budget;
• the needs of the Citizen’s Advice Exeter continued to grow, and they still had professional staff and support services that they needed to fund;
• Citizens Advice Exeter was only supported financially by Devon County Council;
• he believed that if this became embedded this year, this could be carried forward in the new unitary authority;
• without support the Citizens Advice Exeter was running at a deficit;
• there were issues with licensing charges in relation to Houses of Multiple Occupation (HMOs);
• properties in the rental sector in a voluntary licencing scheme should be self-financing; and
• he welcomed the government’s stance on the Renters’ Rights Act.

 

Councillor Moore, as Leader of the Green Group made the following comments during debate:

• she agreed about the importance of Citizens Advice Exeter;
• during the first quarter of this year, Citizens Advice Exeter had helped 1300 clients with 4844 issues;
• Citizens Advice Exeter brought income for the Council, and had secured a £1,000,000 gain for residents; and
• this would be a strategic investment for the Council.

 

During debate a Member highlighted that demand did not disappear when services were cut, and that people should be campaigning and canvasing Devon County Council to invest in services that people relied upon.

 

Councillor Palmer, as seconder, made the following comments in support of the amendments:

• she had a high concentration of HMOs in her ward;
• Exeter City Council was the only authority with such a high-level HMOs without a licensing scheme;
• residents were living in appalling housing conditions and a large number of students would not complain because they were worried about losing their housing;
• vulnerable people were living in unregistered, poorly maintained housing;
• political belief should not be considered in this matter;
• everyone had a right to live in a decent home;
• the Council could play their part by having these schemes; and
• they were encouraging that a legacy be left for residents in Exeter to have a safe place to live.

 

Councillor M Mitchell responded to comments made in the debate in the following terms:

• it was only a few years ago that Exeter City Council had been giving Citizens Advice Exeter £75k a year;
• the Council did not make a contribution, and charged Citizens Advice Exeter for the use of the building;
• Citizens Advice Exeter was a desperate service for people in extremely dire circumstances; and
• if Exeter City Council did not care, why should anybody else.

 

The Leader, as mover of the original motion, responded to comments made in the debate in the following terms:

• this Council had given support to Citizens Advice Exeter in the past;
• the Customer Focus Scrutiny Committee had been clear regarding peppercorn rent;
• the Chief Executive had written a letter to Citizens Advice Exeter and he could not see why this letter could not be shared with all Members; and
• they could not precondition the new Unitary Authority going forward.

 

Following a vote the recommendations were NOT CARRIED.

 

Councillor Moore and Councillor Read raised a Point of Order under Standing Order 10 (7) regarding the Leader’s additional wording added to the resolution, as she believed it had not been submitted in accordance with the Standing Order.

 

The Strategic Director for Corporate Resources advised Members that the Labour Group had proposed an acceptable amendment to the budget.

 

The Lord Mayor advised that additional wording had been added to the budget rather than an amendment.

 

In presenting his Budget speech, appended to this set of minutes, the Leader, Councillor Bialyk, covered the following themes:

• a balanced budget had been achieved through effective financial management;
• extensive consultation had ensured alignment with resident and community priorities;
• no frontline service cuts were anticipated for the next two years;
• the proposal for LGR had been developed with cross-party support, and was now out for public consultation;
• elections would now go ahead and the government were providing additional resources to support;
• the Community Safety Team (CST) had expanded citywide, contributing to notable reductions in ASB and city centre crime;
• 311 new high-definition CCTV had been installed, with additional cameras planned;
• a new City Centre Strategy was being developed using input from the Residents Survey, focusing on safety, accessibility, economy, housing, and travel and would go to consultation later in the year alongside the updated Safety of Women and Girls at Night Charter;
• over £526k had been distributed to low-income households through the Household Support Scheme;
• there was ongoing support for community groups, and Citizens Advice Exeter, including peppercorn rent, and access to future funding opportunities;
• the Exeter Plan had been submitted and was about to begin examination;
• there had been progress on new council housing at Vaughn Road, the St Thomas redevelopment, retrofit programme, and social housing partnerships;
• major regeneration was underway in a number of areas across Exeter, with 182 affordable homes secured via s106 funds;
• Newtown active-travel scheme was due to start, and significant engagement had been undertaken;
• a climate resilience plan was being developed, with long-term investment expected to fall to a future unitary authority;
• restoration of the Royal Clarence Hotel and the new Wonford centre had been approved;
• the Community Asset Transfer (CAT) policy would be reviewed for consistency and transparency;
• there would be no increase in parking charges and refurbishment was being planned at key car parks;
• the Leisure Service had seen a growth in membership and high participation levels;
• Exeter had submitted a bid for the UK City of Culture 2029; and
• major operational upgrades had been approved, including the new MRF purchase, waste hub development, and the proposed office relocation which would enable CityPoint redevelopment.

 

The Leader talked Members through the details of the Budget proposal making the following points:

• the government had provided a multi-year settlement for the first time in 10 years and funding for 2026/27 remained the same as that for 2025/26;
• Exeter City Council continued to set one of the lowest council tax rates in the country;
• the proposed increase was 2.99 percent, which was £191.31 for band D properties, around 11p a week;
• the total Band D charge for 2026/27 was £2,495.36
  • Devon County Council: £1,891.17
  • Police and Crime Commissioner: £303.20
  • Exeter City Council: £191.31
  • Devon and Somerset Fire Authority: £109.68
• the Labour Group had proposed the creation of a new “Pride in Exeter” neighbourhood improvement fund totalling £130,000, which could be used to support small-scale local improvements such as clearing overgrowth, minor repairs, and tidying work;
• the council had delivered against key commitments including cost-of-living support, climate action, homebuilding, green space protection, cultural investment, and a stable, well-led council; and
• this council would hand over to a new unitary authority in a strong, well-managed position.

 

During debate, Councillor Holland, as Leader of the Conservative Group, made the following points:

• there was much to be celebrated in this budget;
• the £2 million given by the Football Association for the development of King George V playing fields should be celebrated; and
• he was pleased that car parking charges had been frozen.

 

Councillor Moore, as Leader of the Green Group, made the following points:

• Passivhaus council houses were brilliant;
• she was concerned that the budget set out a continuation of doing, rather than working with;
• the CAT needed to be put into action, with money;
• the Council needed to work with communities,
• she wanted long term investment in the city’s parks and green spaces;
• the inequality gap in the city was growing; and
• core spending power had actually decreased by 16.7% when compared to 2010.

 

The meeting was adjourned for a break at 20:12 and resumed at 20:22. 

 

During debate on the substantive motion, Members’ made the following comments in support of the proposed budget:

• it was incredible that Exeter was the fastest growing city in the UK;
• it was important to recognise retrofitted homes as there was still lots more work to do;
• there was lots of work to be done that was not in the remit of the council, such as flood prevention, transport, and roads;
• the Newtown scheme would make a huge impact on safety, use of green space, and active travel;
• the leisure service was not an optional extra;
• inactivity had been targeted through the Live and Move project;
• 1.7 million people had visited the leisure facilities in Exeter this year;
• money was being saved by building Passivhaus council houses;
• the extension of the Community Safety Team into Heavitree was very welcome;
• community asset transfer was challenging but was progressing;
• culture facilities across the city, such as the RAMM and the Phoenix were reaching wider audiences;
• students were welcome in the city and they should feel welcomed;
• the housing development work in St Thomas was very positive;
• public realm improvements were vital;
• the City Centre Strategy included improving climate resilience;
• planting more trees would become easier under the new Unitary Authority;
• the amendments couldn’t be accepted with a specific amount of money, as it was included as part of the City Centre Strategy;
• the Community Safety Team were not a massive team but were doing incredible work; and
• the Leader would be looking at the existing Community Asset Transfer policy.

 

During debate, Members’ made the following comments opposing the budget:

• community balance had been taken away in the local plan;
• the co-living policy was inadequate;
• residents wanted actual help;
• in 2003, Exeter was a debt free authority and this was no longer the case;
• it was really important to have nature-based solutions for climate change and these could have been done locally with small amounts of budget; and
• the Green Group amendment did not have figures because it was advised against.

 

Councillor Rees raised a Point of Order under Standing Order 10(15) and was advised by the Lord Mayor that this was only applicable for clarification on something they themselves had said.

 

In summing up, the Leader made the following points:

• he would write to the Leader of Devon County Council and would like to meet with him and the Leaders of the other parties;
• the Portfolio Holders had demonstrated their understanding of the portfolios and what they intended to do;
• the car parking did not go up as it had increased the previous year;
• decent public transport was necessary for getting around the city, and it was not possible to tell people to leave their cars at home until that was sorted;
• the leisure service had been brought back in house;
• he was not against asset transfer;
• he wanted transparency, not bureaucracy;
• local councillors needed to get involved with community builders;
• he was open to ideas on how to speed up the retrofit; and
• he did understand the concerns surrounding Citizens Advice, and he would circulate the letter from the Chief Executive.

 

In accordance with Standing Order 30, a named vote on the resolution including the additional wording proposed by the Leader, was recorded, as follows:

 

Voting for:

Councillors Asvachin, Begley, Bialyk, Cookson, Darling, Foale, Haigh, Harding, Holland, Hussain, Ketchin, Knott, Miller-Boam, Parkhouse, Patrick, Payne, Read, Rolstone, Snow, Vizard, Wardle, Williams R, Wood, Wright, and The Right Worshipful the Lord Mayor Councillor Jobson. (25 Members).

 

Voting against:

Councillors Banyard, Bennett, Mitchell M, Moore, Palmer, and Wetenhall. (6 Members).

 

Abstaining:

Councillors Fullam and Rees. (2 Members).

 

The Resolution was CARRIED:

 

RESOLVED:

 

 

1)     That the following, as submitted, be approved:

 

(a)   the Revenue estimates for 2026-2027;

(b)   the Capital programme for 2026-2027;

(c)   the Fees & Charges for 2026-2027;

(d)   the Treasury Management Strategy for 2026-2027;

(e)   the Prudential indicators for 2026-2027 (incorporating the Minimum Revenue Provision Statement); and

(f)     the Capital Strategy for 2026-2027

 

2)     that it be noted that, at the meeting of the Executive on the 16 December 2025, the Council calculated the figure of 40,186, as its council tax base for the year 2026-2027 in accordance with the Local Authorities (Calculation of Council Tax Base)(England) Regulations 2012 made under Section 33(5) of the Local Government Finance Act 1992;

 

3)     that the following amounts be now calculated by the Council for the year 2026-2027 in accordance with Sections 31A of the Local Government and Finance Act 1992:-

 

(a)   £127,722,990 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2)(a) to (f) of the Act;

 

(b)   £120,035,006 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3)(a) to (d) of the Act;

 

(c)   £7,687,984 being the amount by which the aggregate at (3)(a) above exceeds the aggregate at (3)(b) above, calculated by the Council, in accordance with Section 31A(4) of the Act, as its council tax requirement for the year;

 

(d)   £191.31 being the amount at (3)(c) above divided by the amount at 2 above, calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its council tax for the year.

 

(e)   Valuation Bands

 

 

                                                                                   

Being the amount given by multiplying the amount at (3)(d) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings listed in valuation band D, calculated by the Council, in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings listed in different valuation bands.

 

4)     That it will be noted that, for the year 2026-2027, Devon County Council, the Office of the Police and Crime Commissioner for Devon and Cornwall and the Devon and Somerset Fire and Rescue Authority have stated the following amounts on precepts issued to the Council, in accordance with Section 83 of the Local Government Act 2003, for each of the categories of the dwellings shown below:-

 

Devon County Council

 

 

 

Office of the Police and Crime Commissioner for Devon and Cornwall

 

 

 

Devon and Somerset Fire and Rescue Authority

 

 

5)     That, having calculated the aggregate in each case of the amounts at (3)(e) and (4) above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby set the following amounts as the amounts of council tax for the year 2026-2027 for each of the categories of dwellings shown below:-

 

Valuation Bands

 

That the following, as submitted, be approved:

(a)   the Revenue estimates for 2026-2027 with an additional budget added of £130,000 for tidying, cleaning and improving the public realm, to be funded from the General Fund Working Balance.