2026-2027 Budget Report

BUDGET PAPER 2026/27

Agenda Item 49 Full Council 12/11/2025 – To agree the budget for 2026/27, and to set and inform Welwyn Hatfield Borough Council of the Council’s precept demand for 2026/27.

1. Reserves Recommendation
Members of Council are requested to review this report alongside the accompanying Excel spreadsheet, which details the budget and reserves calculations.
Based on the figures presented, it is recommended that Council utilise available reserves to keep the Precept as low as possible ideally below both the Retail Price Index (RPI) and the current rate of inflation. Over the past two financial years, the Parish Council has successfully drawn on its reserves to maintain a low Precept.
For the forthcoming year, subject to Council approval, it is proposed that £72,443 from the Parish Council’s reserves be used to support expenditure.
Council are further advised to maintain general reserves equivalent to 3-6 months of operational costs, estimated to be between £75,000 and £150,000. Any remaining reserves should be allocated as recommended and agreed by Council.

2. Budget for Northaw & Cuffley Parish Council (NCPC) for 2026/27
Attached is the proposed budget on the Excel spreadsheet, the budget required for Northaw & Cuffley Parish Council for 2026/27 to fulfil its obligations is £385.500.00.

The main reasons for this increase are:
• Increased contractor and supplier costs: Rising prices for grounds maintenance, waste collection, and other contracted services due to higher fuel, materials, and insurance costs.
• Utility and energy costs: Continued volatility in electricity, gas, and fuel prices affecting the running of Council buildings, street lighting, and other facilities.
• Insurance premium increases: Ongoing upward trends in public liability and asset insurance costs following national market adjustments.
• Repairs and maintenance obligations: Ageing infrastructure (such as play areas, open spaces, and community buildings) requiring higher levels of maintenance and capital investment.
• Regulatory and compliance costs: New or updated statutory requirements for example, health and safety, environmental, or accessibility regulations may require additional expenditure.
• Technology and communications: Upgrading IT systems, cybersecurity measures, and digital communications to meet modern standards and transparency requirements.

3. Considerations
a) Car parks
Prices were last reviewed in 2023
Council should consider car parking charges and confirm now in time for WHBC budgetary schedule.

Maynard Place Car Park, EN6 4JA
Charges apply Monday to Friday: 08:00 to 18:00, and Saturdays: 07:30 to 13:30.
Sunday: No charges apply.
Up to 2 hours free parking for Blue Badge Holders parked in designated parking spaces.
0-1 hour no charge (Valid ticket must be displayed).
0-2 hours 50p
2-3 hours £1.00
3-4 hours £2.50
4-5 hours £5.00
Over 5 hours £10.00

Sopers Road Car Park, EN6 4RY
Charges for weekdays only:
£5.50 per day
£3.50 per day after 10.00
£2.50 per day after 17.00
Charges for Saturdays: £2 per day
Sundays and Bank Holidays: Free

b) Rent on Buildings
Cuffley Hall – rent fixed at £5 peppercorn
Community Centre – rent fixed at £5 peppercorn
KGV Pavilion – rent currently £4,631.93 new lease so 1st payment at this rate
KGV Garages – rent currently £1,066.10 and an RPI increase was made in 2023 of £109.10
Tennis Club – rent currently £1151.85 and an RPI increase was made in 2023 of £48.85 pa
Bowls Club –rent currently £293.66 and an RPI increase was made in 2023 of £5.66 pa
Peters Wood – rent currently £1400 no increase has been made
RFO Recommendation in 2025/26 budget preparation was to freeze rents at stated
levels and review again in 2026/27
RFO Recommendation in 2026/27 is to again freeze rents at stated levels due to KGV
consultation and changes made to waste collection having an impact on the
organisations but to review the rents in detail in 2027/28 budget discussions

4. Budget Recommendation RFO (Responsible Financial Officer)
Subject to any changes after considerations the RFO recommends that the Council confirms a budget requirement for Northaw & Cuffley Parish Council of £385,500.00 net for the financial year 2026/27.

5. Precept Requirement for 2026/27
Upon finalising the budget, NCPC must determine the funding source. This may be fully or partly from council tax collected by Welwyn Hatfield Borough Council or from reserves (excluding capital reserves, which are designated for capital expenditures). As of November 2025 (Month 6), NCPC held a balance of £758,402 there is a further 6 months of the budgeting year remaining
and a further £140,329 2nd half of the 2025/26 Precept due in Month 7 still to be included.
Welwyn Hatfield Borough Council will provide the tax base in December 2025 all figures in this report and on the budgetary spreadsheet use the previous tax base figure from 2025/26 which was 3129.7 households, this represents the number of Band D properties contributing to the NCPC precept.

6. Precept Demand
Based on a budget of £385,500 and a tax base of 3129 households, the projected charge per Band D property should be £91.72. This represents an increase from the previous year’s Band D charge of £89.94, amounting to an additional £1.78 per household annually or a 2% increase.
This increase accounts for inflationary adjustments and a larger use of Parish Council reserves of an estimated £72,443.00.

7. Precept Calculation
Income Source Amount (£)
Admin 8,000
Asset Income 17,465
Car Parks 132,000
Total Income 157,465
Income less Car Parks 25,465

Expenditure Category Amount (£)
Operating Costs 57,700
Staff 120,000
Open Spaces 139,300
Community 30,750
Car Park 37,750
Total Expenditure 385,500
Net Precept Requirement | £360,035 (B)
Use of Reserves 2026/27 | £72,443.00

8. Summary
The proposed budget for Northaw & Cuffley Parish Council for the financial year 2026/27 totals £385,500. Based on a tax base of 3,129 Band D equivalent properties, the calculated Precept per Band D property is £91.72, representing a modest 2% increase (£1.78 per household) on the previous year’s charge of £89.94.
The increase reflects inflationary pressures on goods, services, and staffing costs, offset by a planned use of reserves of £72,443 to minimise the impact on residents. This prudent use of reserves allows the Council to meet its statutory and operational obligations while keeping the Precept below both the Retail Price Index (RPI) and the current rate of inflation.
The net Precept requirement for 2026/27 is therefore £360,035, after accounting for anticipated income from administrative fees, asset income, and car park operations. The Council’s approach continues the established practice of utilising reserves responsibly to support expenditure and maintain stability in the local tax burden.
Council are recommended to resolve that the Parish Clerk informs Welwyn Hatfield Borough
Council (the Council tax collector) that the NCPC precept demand for 2026/27 will be £287,047.

Lisa Peters LGCI PSLCC CPFA CiLCA
Responsible Financial Officer (RFO)
For and on behalf of
Northaw & Cuffley Parish Council
5th November 2025

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