Delivering a balanced and sustainable budget
Performance reflections
Prudent financial management alongside additional income have contributed to an improved balance budget position. A revised Government funding settlement has led to additional resources enabling additional investment in services and a balanced position. £26.13m of savings were made in 2025 to 2026 against a target of £31.11m, a delivery of 84%. Four projects delivered no savings and 13 had partial delivery. Sixty-five delivered full or excess delivery.
It is aimed to achieve 100% of the savings identified, so this could be the target for the indicator, but the current target for this report is to improve the total and percent of savings delivered compared to last year, and this was achieved.
The business rates tax base declined in Quarter 4 as we see the impact of City Centre South (CCS) redevelopment. Business rates total rateable value represents the valuation of all commercial properties in the city assigned by the Valuation Office Agency and provides the basis for the business rates tax base.
The decline in the in-year Business Rates collection rate in 2025 to 2026 was largely attributable to several large assessments going uncollected due to business failure. The wider local trading conditions for businesses continue to create a challenging collection environment for business rates.
In terms of collection of business rate arrears, in 2025 to 2026 a 50.1% reduction in business rates prior year balances was achieved, slightly lower than the 52.6% reduction seen in 2024 to 2025. Business rates arrears at the start of the year were £12.4 million and reduced to £6.2 million by the end of March.
Council Tax collection remains challenging amidst ongoing cost of living challenges and high levels of population transience in the city.
Collection of prior year council tax balances reduced from 25.1% in 2024 to 2025 as the Council took steps to write off a significant amount of aged debt. £6.9 million of arrears were collected in 2025 to 2026 compared with £7.4 million in the previous year.
Actions taken in year
The City Centre South (CCS) redevelopment will ultimately result in new and increased rateable units for both domestic and business taxation.
We continue to utilise all available recovery and enforcement remedies in the collection of business rates and continue to bill Council Tax quickly by automating up to 90% of all changes in liability and continue to adopt quick and robust enforcement measures
We continue to utilise all available recovery and enforcement remedies in the collection of council tax.