We provide a wide range of services to our 223,665 residents, spending over £580m annually. We are responsible for many of the services that affect people's daily lives including social care for children and adults, schools, waste disposal, public health, libraries and roads.
Each year, the council sets a budget to determine how much money will be spent on services. We have a duty to set a balanced budget, which is agreed by Full Council in February.
In 2027/28, there is a budget gap of £7.4m, which has been caused by pressures in Children’s Services and Adult Social Care, where rising demand and costs have increased significantly since April. This has also put a strain on our current year's budget, with the council now reporting an £8.9m overspend.
This means we need to make careful choices about where money is spent in the new financial year, while continuing to find more cost-effective and innovative ways to deliver services.
In the past few years, we have strengthened financial controls, brought services back in-house, reduced debt and delivered annual savings of £15m–£20m. Earlier this year, an independent CIPFA (Chartered Institute of Public Finance and Accountancy) review recognised this progress as well as the pressures that remain.
Our Government funding is increasing because of the Fair Funding Review. Introduced in April 2026, this means that our Government funding will rise substantially over three years, better reflecting Peterborough’s growing population, deprivation, service demand and limited scope to raise council tax income.
However, rising demand and costs in Children’s Services and Adult Social Care are currently absorbing much of that extra funding.
You can find more information in our budget consultation document. We recommend you read this before taking part in our consultation.
Have your say
As we plan our spending for the year ahead, we need to hear:
- Your views on the council's financial position and spending priorities, including which services matter most
- Your suggestions for how to make further savings and increase income
- Your views on Council Tax options
What happens next
Your responses will be considered by councillors at a Cabinet meeting on 15 December 2026.
Further key dates
- 18 January 2027 - Joint Meeting of the Scrutiny Committees. Members will be asked to consider the draft Medium Term Financial Strategy and Budget Report and recommend any changes to Cabinet.
- 16 February 2027 – Cabinet asked to approve Medium Term Financial Strategy and Budget Report and recommend to Full Council for approval.
- 24 February 2027 – Full Council asked to approve the Medium Term Financial Strategy and Budget Report.
What we spend our budget on
For every £100 we spend, this is how it is split between the various services we provide.
Councils have six main sources of funding:
- Council Tax
- Business Rates
- Government Grants
- Housing Benefit
- Dedicated schools grant
- Income from service users
For every £100 of funding we receive to fund our £580m gross budget, this is how it is split between the different sources of funding:
