Rutland Faces "Pivotal" Budget as Council Braces for Funding Cuts and Reorganisation, Cabinet Meeting, Tuesday, 10 February 2026

Rutland Faces "Pivotal" Budget as Council Braces for Funding Cuts and Reorganisation
By Rutland Democracy Reporter

Rutland County Council’s Cabinet will meet Tuesday, February 10, to discuss a series of high-stakes reports that will define the county’s financial and strategic path toward Local Government Reorganisation (LGR) in 2028.

At the heart of the meeting is the 2026/27 to 2028/29 Integrated Budget Plan and Medium-Term Financial Strategy (MTFS). Senior leaders have described this as one of the most "pivotal" budget-setting periods in Rutland’s history, as the council attempts to "shape the future" during its penultimate budget before merging into a new unitary authority.

A central theme of the budget report is a significant and "unexpected" blow to the council's finances caused by changes to the national "Fairer Funding" formula. Despite initial government estimates suggesting Rutland might see an extra £1.3m in grants, recent alterations to the calculation mean the council has instead lost nearly 20% of its anticipated national funding.

The council now receives a general grant allocation of just £640.28 per dwelling—less than half the national average of £1,413.94. This disparity has forced the council to rely on local taxpayers for approximately 80% of its total funding, far exceeding the national average of 53%.

To balance the books, the Cabinet is proposing a 3.90% increase in Council Tax for 2026/27, which includes a 2% precept specifically for adult social care. Leaders noted this is the smallest increase in over a decade and would see the average Band D property bill rise by approximately £7.21 per month.

The proposed £95.6 million total budget for 2026/27 includes significant allocations for frontline services:

• £26.8m for Adult Social Care, including residential and community care.

• £21.2m for Education and high-needs (SEND) provision.

• £8.7m for Children’s Services, such as fostering and adoption.

• £6.0m for waste disposal, recycling, and street cleaning.

• £5.2m for highways and transport maintenance.

The council is also proposing a £28.1m Capital Programme over the next three years to invest in infrastructure and local assets. Key projects under consideration include:

• £6m to make the Rutland County Museum the permanent home of the "Rutland Sea Dragon."

• £2.6m for primary school classroom adaptations and specialist SEND facilities.

• £1m for town centre enhancements in Oakham and Uppingham.

• £1m for improvements to major road junctions in Oakham.

• £400k for new X-ray diagnostic services at Rutland Memorial Hospital.

The Cabinet will also review a refreshed Corporate Strategy for 2026-2028. While the four core priorities Tackling the Climate Emergency, A Diverse and Sustainable Economy, Supporting the Most Vulnerable, and Providing Effective Public Services remain, the strategy has been updated to be "data-led" and focused on the transition to LGR.

Public consultation feedback on these priorities was mixed. While many residents supported the focus on vulnerable groups, some survey respondents expressed concerns that "Tackling the Climate Emergency" should not take precedence over infrastructure issues like road repairs and potholes.

A separate report on the current 2025/26 financial year (Quarter 3) shows a stable position, with a small forecast underspend of £0.2m. However, this stability masks underlying pressures, including a £1.9m strain on services that has been offset by one-off corporate mitigations. The council also continues to face a "structural pressure" in the Dedicated Schools Grant (DSG) due to high-needs demand, with a forecast deficit of £5.2m by the end of 2025/26.

Meeting Details:

• When: Tuesday, 10 February 2026, at 10.00 am

• Where: Council Chamber, Catmose, Oakham

• Public Access: The meeting is open to the public, though seating is limited. It will also be recorded for subsequent viewing.