Derby City Council has published updated proposals for a balanced budget that will make a tangible difference to the lives of residents.
The continued protection of essential services, combined with substantial investment into the heart of Derby’s communities feature in the proposals, which will be reviewed by the Council’s Cabinet later this month.
The robust three-year Medium-Term Financial Plan (MTFP) (from 2026/27 to 2028/29) invests heavily into areas such as community safety, Derby’s cultural sector and improving our streets and public spaces.
Since the initial proposals were made in December 2025, full details of the Government’s Fair Funding Reforms and Local Government finance settlement have been received, allowing for more accurate plans to be made. The updated proposals also take into consideration feedback from those who live, work and study in Derby following a public consultation.
The latest funding settlement has increased Derby’s Core Spending Power (CSP) by 9%, equating to around £27 million. This provides the Council with additional resources to meet ongoing financial pressures of around £42 million, whilst also providing much needed investment back into local public services. This also reduces the need to make further savings.
A key part of the reforms is a move to multi-year settlements which include ringfenced grants, giving the Council greater flexibility to be able to respond to local needs.
The financial landscape for councils remains challenging across the UK. Increases in demand, inflation, interest rates and prices have made it much more expensive to provide essential services and support Derby’s most vulnerable residents. Despite this, the proposals continue to safeguard essential services, such as Adult and Children’s Social Care.
The MTFP proposes savings of around £8 million, which will be made through service improvements and ongoing efficiencies, such as the continuation of the Council’s pioneering Artificial Intelligence (AI) programme. For the first time in many years, the proposals do not include plans for staff redundancies or a reduction in staff.
Councillor Nadine Peatfield, Leader of the Council and Cabinet Member for City Centre, Regeneration, Strategy and Policy said:
Since 2010, the Council has been forced to deliver savings of £260 million, so to be able to now make such significant investments into our communities is fantastic. Our proposed investments include more PPOs and city centre CCTV, weeding, clearing wet leaves and tackling bins on streets - things that will make a real difference to residents as soon as they walk out of their front doors.
The Government’s reform of the way local authorities are funded has made a huge difference to us here in Derby, providing more money to the people who need it and helping us to plan for the future.
Councillor Kathy Kozlowski, Cabinet Member for Governance and Finance said:
We are committed to putting people first and building a city to be proud of, and that’s just what we plan to do through these proposals. Protecting our most vulnerable residents, creating a vibrant city and reducing poverty have always been priorities for us, and these proposals allow us to continue our work in these key areas, and many more.
We know that we are not out of the woods yet, but I am confident that our proposals for a sensible and balanced budget, combined with continued responsible leadership will improve the lives of the people who live, work and spend time in our city.
This year’s proposals would also see Council Tax increased by 4.99%, with 2% of this ringfenced for social care. This is the assumption used by the Government in its funding allocation and is a necessary step in supporting a balanced budget. However, the Council recently approved plans to expand Derby’s Council Tax Support Scheme, reducing the minimum contribution made by households to better support those on a low income within the city.
The Quarter 3 monitoring report will also be presented to the Council’s Cabinet. The report highlights the positive position Derby finds itself in, reducing a predicted overspend of £0.5 million to a predicted underspend of £2.6 million by the end of the 2025/26 financial year. In addition to this, 100% of the Council’s savings target is expected to be met, with reserve balances continuing to improve.
The Cabinet meeting will be available to watch live on the Council’s YouTube channel. Both reports, along with the full budget proposals, can be found on the Council's website.