Final budget for 2025-2026 approved by North Northamptonshire Council
Finance20 February 2025
Final budget proposals for North Northamptonshire Council for the next financial year were approved at a meeting of the council earlier today.
Draft proposals were initially agreed by the Executive on 19 December, and these were subject to a detailed consultation process and scrutiny before final proposals went before Executive earlier this month.
Overall, the net revenue budget for 2025/2026 is £400.8 million, excluding the Dedicated Schools Grant. This money provides a range of services to residents and businesses across the area including care to vulnerable adults and children, education, the disposal and collection of waste, highways maintenance, economic development, housing and support for those that are homeless.
A commitment to maintain vital service provision has seen the council invest an additional £51.8 million into services, including £23.7 million into adult social care and £6.2 million into children’s services to protect the most vulnerable in our communities and address growing demand for these vital services.
These pressures are, in part, offset by savings, efficiencies and further income of £26.3 million. Taken together with an improvement in funding expected from business rates, council tax and government grants the council has been able to set a balanced budget for 2025/2026.
The council also has a programme of capital investment totalling £208.5m over the four-year period 2025-2029 across a number of schemes including investing over £59.3m into highways, £36.6m for continued investment into housing stock, £29.4m for investment into schools, £8.1m to support facilities for those with disabilities, £6.3m in improving digital infrastructure and £2.6m for electrical vehicle infrastructure.
Financial stability is essential in providing the foundations to deliver services across our area and I’m delighted that following our budget setting process we’re bringing our final proposals for approval at council.Cllr Lloyd Bunday, the council’s Executive Member for Finance and Transformation
While we’re in a good financial position we will need to continue to be mindful of ongoing financial challenges nationally and internationally, along with rising demand for our services.
Delivering efficient, effective, and affordable public services is a commitment we have made to everyone in North Northamptonshire.Jason Smithers, Leader of the Council
Despite the recent challenging financial climate we have been able to bring a balanced budget for final approval while at the same time bringing forward a capital programme which plans for the future.
I’m tremendously proud of what we have achieved so far as an authority and staff and Members continue to show tremendous resilience and determination in delivering services for our residents.
Council tax
Government has permitted local authorities such as North Northamptonshire Council to increase the council tax rate by 5%, including 2% for the adult social care precept, in recognition of the difficult financial climate.
The authority is proposing an increase allowed by government in council tax of 4.99%.
This increase would contribute around an additional £11m per year towards inflationary and demand lead pressures to enable services to be maintained and would represent a Band D level of council tax for North Northamptonshire Council of £1,827.06 for 2025/2026. This means that North Northamptonshire council’s council tax rate will be in lower third for unitary councils.
This is an annual increase of £86.84 (equivalent to £1.67 per week) from the Band D council tax level set in 2024/2025.
Increasing council tax has the advantage of providing stable funding for the future, helping to further protect services, and will provide the council with a degree of certainty around funding. This is important as there will be a review of how government grants are distributed from 2026/2027
This Band D figure does not include the council tax for individual town and parish councils or the council tax set for Fire and Police by the Northamptonshire Police, Fire and Crime Commissioner.
There is no change to the Local Council Tax Support Scheme which will continue at 25%.
Housing Revenue Account
The Housing Revenue Account (HRA) is a separate ring-fenced account within the council for the income and expenditure associated with its housing stock.
The HRA does not directly impact on the council’s wider general fund budget or on the level of council tax. Income to the HRA is primarily received through the rents and other charges paid by tenants and leaseholders.
This year’s budget for the HRA is in a balanced position while crucially the medium-term is also showing a balanced position.
There will also be a rent increase of 2.7% for the next financial year, which accords with the Government’s rent setting policy for 2025/2026. Any funding received by the HRA is retained within the HRA and will be used to support investment into the council’s housing stock through improvements and maintenance.