Councillors approve a budget in the face of a challenging financial climate
St Albans City and District Councillors have agreed a “sound and fair” budget for the next financial year along with a long-term plan setting out their priorities for action.
The Council (SADC) is required to produce a balanced budget every year, ensuring spending is matched by the income it raises from various sources.
In common with other local authorities, it has been faced in recent years with a challenging economic climate that has put intense pressure on its finances.
This includes rising costs and a much higher demand for homelessness support.
As part of the 2026/27 budget, Councillors agreed to a 2.99% rise in the District’s Council Tax bill. This supports a gross Council spend of £58.8 million, excluding social housing spend and income.
This means a resident in a Band D property will pay an average of £214.22 to the Council for its services in the coming year – an increase of just 12p a week.
SADC’s portion of Council Tax amounts to around 9% of the total collected, with Hertfordshire County Council receiving 77%, the Police,11%, and the parish and town councils, who set their own budgets, 3%.
The money received by SADC will fund key services including waste and recycling collections, street cleaning, leisure and cultural services, planning, parks and open spaces, 24/7 CCTV protection, environmental health and grants to voluntary bodies such as Citizens Advice.
Councillors also approved a rent rise in accordance with Government guidelines of 4.8% for its social housing properties. Garage rents will increase by 6.7%
The budget was approved at a meeting of the Full Council on Wednesday 25 February.
Councillor Giles Fry, Lead for Resources, said after the meeting:
I am pleased that Full Council has agreed to a balanced budget that is both fair and financially sound.
It will protect our key services, such as our leisure, community and cultural facilities, while also allowing for some notable investments such as a new community and sports hub in the New Greens area.
Over the last year, commercial tenants have begun to move into Jubilee Square which will provide us with much-needed new income in the future. We will continue to look for other revenue-raising opportunities.
I hope our residents will continue to support the work we are doing to further strengthen our communities in the face of a tough financial climate.
Full Council also approved a Council Plan for the next two years which is founded on four priorities. These are to:
- Support great communities
- Provide more social housing.
- Make the environment a priority in all Council decisions.
- Treat everyone with fairness.
The Plan includes the many actions the Council is committed to taking to achieve these goals.
Councillor Paul de Kort, the Council Leader, said after the meeting:
One of the dominant issues for next year is the Government’s plan to restructure local government.
This will see the abolition of the two-tier system of district and county councils and its replacement by new unitary authorities.
As we move towards this new structure over the next couple of years, we must not lose sight of our priorities such as providing the District with more social housing, improving the local environment and keeping our District a great place to live and work.
Details of the budget together with the Council Plan can be viewed along with the Full Council meeting papers here.
Media contact: John McJannet, Principal Communications Officer: 01727- 819533; john.mcjannet@stalbans.gov.uk.