Vital services protected as North Northants budget tackles the challenges of a tough economic climate and increasing demand for services
08 December 2025
Protecting and investing in our local frontline services against a backdrop of continued national financial uncertainty is the focus of North Northamptonshire Council’s budget proposals for the next financial year (2026/2027).
A report to be discussed at Executive on 16 December - will propose a balanced revenue budget for 2026/2027 as well as outlining the medium-term financial plan for the following three years.
The proposed net revenue budget for 2026/2027 is £431 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 collection and disposal of waste, highways maintenance, economic development, housing and support for those that are homeless.
The draft budget has been prepared using indicative figures from central government. Like all local authorities, the council will receive details of its full financial settlement in the week starting December 15 and update the final budget position accordingly.
A commitment to maintain vital service provision has seen the Council invest an additional £47million into services, including £17.7 million into adult social care and £12.2 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 £21.3 million.
Council fees and charges have been reviewed for 2026-2027 and set in accordance with the Council’s constitution.
This includes a proposed review of the annual charge for the council’s garden waste service so that the income received pays fully for the delivery of the service. This will see the charge increased to £62 for a 12-month subscription, from April 1, 2026.
The Council will also be proposing a programme of capital investment for the General Fund totalling £268 million over the four-year period 2026-2030 across a number of schemes including investing over £135 million into highways, £44 million for investment into schools, £16million for accommodation for vulnerable children in care, £10 million to support facilities for those with disabilities and £6 million in improving digital infrastructure. The Council will be investing over £61m into its housing stock over the next four years.
The financial climate remains extremely demanding, but we’re determined to provide quality services to the people of North Northamptonshire and we’ve managed to do this while setting a balanced budget.Cllr Graham Cheatley, the Council’s Executive Member for Finance, Efficiency and Change
These are our draft proposals. With Executive approval, these plans will then be consulted upon and it’s important that we get as much feedback as we can to help further refine our proposals.
We’ve made a promise to the residents of North Northamptonshire that we’re going to build on the quality of services that we provide while ensuring that every penny of taxpayers money is spent efficiently.Cllr Martin Griffiths, Leader of the Council
I’m proud we’re able to propose a draft budget that does just that and proud that we’re able to invest in services to make them fit for the future.
Like for many councils, we need to be mindful that the next few years still look very testing. We are going to continue to work hard to rise to this challenge and deliver services that our residents deserve.
Council Tax
Government has permitted local authorities such as North Northamptonshire Council to increase the Council Tax rate by 4.99%, 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 £10.9m 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 £1,918.23 for 2026/2027. This means that North Northamptonshire Council’s Council Tax rate will be in the lower third for unitary councils.
This is an annual increase of £91.17 (equivalent to £1.75 per week) from the Band D Council Tax level set in 2025/2026.
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 Band D figure does not include the Council Tax for individual Town and Parish Councils or the Council Tax set for the 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 Draft Budget for the HRA is in a balanced position while crucially the medium-term is also showing a balanced position.
There is also a proposed rent increase of 4.8% for the next financial year, which accords with the Government’s rent setting policy for 2026/2027. 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.
Dedicated Schools Grant
The Dedicated Schools Grant (DSG) is a ring-fenced grant from Government to support education related services.
The allocation is driven by a number of factors but predominantly relates to pupil numbers.
The provisional funding allocations for mainstream schools and local authorities in 2026-2027 through the schools and Central School Services Block (CSSB) were announced on November 19.
The High Needs and Early Years allocations were not included in the announcement on November 19 but are expected to be announced alongside the provisional financial settlement which is expected during the week starting 15 December.
At this stage, money for the Early Years Block and the High Needs Block for 2026-2027 has been based on the current financial year’s allocation. This will be updated following the provisional settlement in December.
The indicative budget being modelled for the DSG is £441.8m.
Councils across the country are generally seeing significant pressures within services funded through the high needs block, which supports children and young people with special educational needs and disabilities from 0 to under 25 years of age.
Next steps
The draft revenue budget will be discussed at a meeting of the Executive on 16 December and, if approved, a consultation on the proposals will start the same day, running until midnight on 23 January, 2026.
The Executive will then meet on 10 February, 2026, to consider final budget proposals for recommendation to Full Council on 19 February, 2026.