Derby City Council has launched its budget consultation for the 2026-27 financial year, inviting residents to have their say on the proposals for a balanced budget.

Anyone who lives, works, or studies in Derby is encouraged to get involved and share their thoughts on the proposals, which includes around £60 million of investment into essential services over the next three years.

The proposals include a robust three-year Medium-Term Financial Plan (MTFP) from 2026/27 to 2028/29, which feature:

  • Major investment: £26 million of investment planned for the 2026/27 financial year, with a further £33 million planned over the following two financial years
  • Workforce stability: no redundancies or cuts to the Council workforce, with some services receiving investment to grow their teams
  • Strategic savings: £7.756 million of proposed savings achieved through continued controls on spending, careful financial management and innovative projects – such as a further £1 million of savings through the pioneering Artificial Intelligence (AI) programme.

Despite the ongoing challenges facing local government, Derby is in a good place. The Council has now received details of the Government's Fair Funding Reforms, which simplify council funding, introduce multi-year allocations, and direct resources to areas most in need.

Derby, which meets all three of the criteria for the reforms – areas of high deprivation, a low Council Tax base and population growth - has gained significantly. Over the coming weeks the Council will unpack the settlement to understand exactly what this means for Derby.

Councillor Nadine Peatfield, Leader of the Council and Cabinet Member for City Centre, Regeneration, Strategy and Policy said:

We absolutely welcome the Government’s local government funding settlement and their commitment to Fair Funding Reforms.

Although we were fairly confident about seeing an increase in this year’s settlement, the final amount was more than we had expected. This is brilliant news for Derby, and we’re committed to making sure that out residents will see tangible difference on their doorstep.

For Derby, this settlement provides the financial clarity we have long called for. It moves us beyond the era of managing decline and allows us to start a new chapter of growth. This fairer approach means that we can now invest around £60 million into our city’s essential services over the next three years, as well as £287 million into capital projects.

This funding isn't just a number on a spreadsheet, it means we can better protect our most vulnerable residents, ensure that Derby is safe and welcoming to all, and continue our work to transform the city centre into a vibrant place to be. After years of making incredibly difficult decisions and more than £112.5 million of savings since 2016, it is fantastic to finally be able to talk about where we can invest, rather than what we must cut.

It will take us a while to work out exactly where this funding will be used, but in the meantime, we want to hear from everyone who lives, works or studies in Derby about where we can make a difference.

Details of the proposals can be viewed with the consultation on the Let’s Talk Derby website. The consultation can be completed online from now until midnight on Friday 16 January 2026.

Paper copies can be downloaded and printed from the website for return by post, and copies in alternative formats are available by emailing letstalkderby@derby.gov.uk or contacting us.