Public consultation to support the development of a balanced budget in 2027/28 has been launched following approval from Cabinet members today (Tuesday 27 October).
Residents, businesses and service users are now invited to read more about the council's financial position and give their views.
The survey asks which services matter most to people, where the council could make savings or work more efficiently, and how it could increase income. It also asks for views on borrowing money for specific capital projects.
The council spends approximately £580 million a year on running and delivering services which support the priorities set out in the Corporate Strategy.
However, with rising demand and costs increasing significantly since March in Children's Services in particular, and Adult Social Care, there is now a budget pressure of £7.4m in 2027/28. This has also put a strain on the current year budget, with the council now reporting an £8.9m overspend.
This means careful choices need to be made about where money is spent in the new financial year, while continuing to find more cost-effective and innovative ways to deliver services.
Councillor Mohammed Jamil, Cabinet Member for Finance and Corporate Governance, said: “In recent 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 review recognised this progress as well as the pressures that remain, particularly in areas such as Children's Social Care.
“Our Government is listening, with the Fair Funding Review introduced in April, better reflecting Peterborough’s growing population, deprivation, service demand and limited scope to raise council tax income. This means our Government funding will rise substantially over three years, however rising demand and costs in Children’s Services and Adult Social Care are absorbing much of that extra funding.
"As a result, we are facing a budget gap in 2027/28 and therefore need to make careful choices about where money is spent. Our focus remains firmly focussed on prevention, demand management and designing new ways of providing services, such as using new technology, AI and data, which can improve the services that we offer and reduce our operating costs."
One of the questions in the consultation survey asks people if they would be supportive of the council increasing its borrowing to pay for key projects, such as investment in the Lido, or a Youth Zone if external funding cannot be achieved.
The council has reduced its debt in the past 12 months and continues to limit new borrowing unless deemed essential or for projects which will save the council money in the long-term.
Councillor Shabina Qayyum, Leader of Peterborough City Council, said: “The council has faced financial challenges for more than a decade because of historic underfunding, low reserves, high debt and rising demand for essential services.
"As set out when I became Leader of the Council a little over a year ago, one of my main priorities was to ensure we moved forward on a more stable financial footing. We are now getting more funding from Government than we have ever seen before, but demand is still much higher than we can achieve within budget.
"We are taking steps to move towards financial sustainability, including finding innovative ways to reduce demand, but in the meantime we have to bridge this difficult financial period.
“It's really important that residents’ views help shape our decisions on how we meet this challenge. So please, take the time to read through the budget consultation document and complete the survey, telling us which services you value the most and how you think we can meet the challenge."
You can have your say via on online survey. Hard copies of the survey can be requested via email to communications@peterborough.gov.uk or calling 01733 747474.
The consultation runs until Tuesday 8 December 2026.