Public consultation to support the development of a balanced budget in 2026/27 has been launched following sign off from Cabinet this afternoon (Tuesday 14 October).
The consultation will run until the end of Tuesday 25 November and can be accessed here.
Residents can read the consultation document which sets out our priorities, our current financial position, how we are funded and what we spend our money on. It also sets out the budget challenge for 2026/27 and how we plan to meet it.
There is then an online survey which residents can complete. Hard copies of the survey are available from all city libraries or upon request by emailing communications@peterborough.gov.uk
Currently the budget gap for 2026/27 ranges from £2m to £9m, dependent upon the Government’s Fair Funding review. This is the proposed new approach to the way Government will allocate funding to councils, which will reflect the latest statistical data, local demand, deprivation, and considers the council’s ability to raise income through council tax.
Based on modelling published as a result of the Government’s consultation on Fair Funding in the summer, we estimate this could reduce our budget gap in 2026/27 to £2.3m and put us into a healthier financial position in the years that follow. Confirmation of funding allocations, however, are not expected until December.
The budget consultation survey also asks for views on raising council tax above the national 4.99 per cent limit, if the council was to use this money for specific purposes, such as towards a new swimming pool for the city.
We continue to charge one of the lowest rates of council tax in the country, around £200 less each year than some of our neighbouring councils.
Councillor Shabina Qayyum, Leader of Peterborough City Council, said: “What we achieve as a council, and as a city, continues to amaze me. We support thousands of adults and older people to remain safe and well, we’re the corporate parent to more than 300 children in care, and we support hundreds of families to be the best they can. We empty bins and clear waste to keep the city clean and green, we run libraries, leisure centres and cultural attractions, and we provide homes for those who are in housing crisis.
“We will continue to provide these services and more in 2026/27, but we must look at how we can work differently and smarter to balance our budget, until we receive the
benefits of Fairer Funding. We are working hard, as a cross-party group of councillors, with the support of officers, on this task.
“Fairer Funding is huge for our council. It recognises what we have been saying for years that we are massively underfunded per head of population, and signals light at the end of the tunnel.
“It could mean that by 2028/29 we don’t have to take such difficult decisions every year and could start investing even more in our services and our city, to create more and better opportunities for all our residents.
“Regardless, we still have a challenge that we need to meet in 2026/27 and we are asking for your opinions on how we do that. What you tell us will guide us as we develop proposals for making savings – proposals we will share with you at a later date.”
Councillor Mohammed Jamil, Cabinet Member for Finance and Corporate Governance, said: “One of the questions the consultation asks is whether residents would be happy to pay a council tax increase above the 4.99% national limit, if we were to use this additional money towards a new pool, for example, or to support people who are on the lowest incomes and struggling the most. This is just a question at this stage; there is no proposal on the table to do so.
“We never take decisions to increase council tax lightly, as we know people face their own financial challenges, but we also know that council tax is a key source of funding for us at a time when we still have a very real financial challenge to tackle. We also charge one of the lowest rates of council tax in the country.
“Please take the time to read the consultation document, and to look at some of the videos we are posting on our social media channels if you are able to, as together they explain clearly our latest financial position and how we plan to meet the challenge.
“For the first time in more than a decade there is a brighter future on the horizon thanks to Fairer Funding, but we still have a challenge to meet in the short-term.”