Cambridge City Council’s proposed budget setting report for 2026-2027 confirms the council has funds to protect and enhance its services for residents. It shows the forecast overspend of £11.5 million by 2030-2031 has been reduced to £1.5 million, of an annual spend of around £80 million.

Councils across the country are facing a very real challenge to balance their books, with costs rising and demand increasing, while incomes are not keeping up.

Over recent budget cycles, Cambridge City Council has been able to protect frontline services that residents rely on by making changes to reduce the costs of delivering services and increase the council’s income.

Councillors have said Cambridge residents can now feel confident that existing services are secure and new pressures will be met.

The council delivers ‘statutory’ services that the council is required to run, such as domestic waste collections, determining planning applications, and administering benefits. The council’s commitment to continuous improvement is reflected in the performance of its services, with the Shared Waste Service collecting 99.9% of household bins as scheduled, the Shared Planning Service being recognised as Planning Authority of the Year, and new Benefit and Council Tax claims being processed, on average, in just two working days.

The council also delivers ‘discretionary’ services, which include seven community centres, swimming pools, Jesus Green lido and splash pads; free community events including the annual fireworks night on Midsummer Common; improving biodiversity including caring for local chalk streams; and operating public toilets.

Proposed spending for 2026-2027 includes:

• £4.9 million (net) looking after the city’s streets and open spaces, including grass cutting, planting, managing weeds and waste collections
• £3.2 million (net) collecting household black bin, recycling and garden waste – including an additional £1 million on statutory new food waste collections
• £2.7 million (net) on services that improve our environment and keep people safe, including food safety inspections, taxi licensing and noise complaints
• £1.7 million towards the council’s joint £6.1 million Waterbeach Renewable Energy Network to charge waste collection vehicles with clean, renewable energy generated at our own depot, significantly reducing carbon emissions from our waste and recycling service
• £1.4 million (net) on planning, including developing local planning policy to ensure good standards for new homes and that they are supported by the right infrastructure, and determining planning applications
• £1.1 million (net) to support community safety, including covering the cost to keep streetlights on
• Over £1 million awarded through the council’s annual Community Grants programme to local community organisations such as Abbey People, Cambridge Ethnic Community Forum, Cambridge Online, Romsey Mill, Rowan Humberstone and Citizens Advice (which provides vital cost of living advice and support)
• £865,000 for repairs and maintenance in city centre car parks and the council’s commercial properties and administrative buildings
• £677,000 (as part of a £4.3 million) investment in the new community centre at East Barnwell, as part of the council’s continuing work to build and run community centres across the city
• £400,000 in grant funding to local partners working to prevent people from becoming homeless
• £253,000 repairing, maintaining and improving the 100+ council-run play parks across the city
• £175,000 in swimming pools, including improving water quality and reducing the use of chemicals; a separate project will also introduce new water recovery and rainwater harvesting systems to significantly reduce water use at the council’s pools
• £160,000 a year to fund new roles to support private tenants in line with the new renters’ rights act
• £120,000 to support the Skill Mill partnership to improve the employability of vulnerable young people who are known to the criminal justice system and not in work, education, employment and training
• £80,000 for an initial phase of work to develop proposals with partners to update facilities at Jesus Green Lido
• £80,000 over the next two years to accelerate weed clearance following the first year of the herbicide free weed clearance programme
• £36,500 a year to fund new trees being planted, including the council’s much-loved free Trees for Babies scheme, helping increase the city’s tree canopy.

Cllr Simon Smith, Executive Councillor for Finance and Resources, said: “Setting a balanced budget isn’t just a legal duty, it’s also a moral duty – if we don’t keep the council’s spending in line with our income, services would be put at risk. Prudent efficiencies due to changing the ways we work including digitisation over the last few years are a credit to the council’s dedicated staff and councillors.

“The sound finances are enabling the council to absorb over £4 million in new pressures, set aside £2.5 million to prepare the council for Local Government Reorganisation, and propose measures residents have called for. These include reopening the Quayside public toilets, accelerating weed clearance whilst retaining our herbicide free policy, and continuing to step in to enhance County Council highway grass verge and shrub bed maintenance and street lights from 10pm to 2am.”

The budget setting report also sets out the council’s proposals to increase the council’s share of council tax by not more than the 2.99% rate set by government, meaning those on band D will see tax for the city council increase from £232.13 a year in 2025-2026, to £239.07 in 2026-2027. This is equivalent to an increase of 13p per week.

The proposals also include spending £41.6 million during 2026-2027 on the repair, maintenance and improvement of council homes, paid for out of housing rents and service charges. This includes significant ongoing investment as the council continues work to improve the condition of council homes for tenants, and £9.8 million to improve the EPC rating of council homes in the coming year, as part of a £39.3 million programme over the next four years.

The budget setting report also sets out the council’s proposals on council rents. For 2026-2027, rents are proposed to rise by 4.8% in line with the new Rent Standard issued by the Regulator of Social Housing this year. This would be an average increase of £7.82 per week for tenants on the lowest rents (around 40% of market rents), or £9.44 per week for those on ‘affordable rents’ (around 60-80% of market rents). The council is also proposing to implement ‘rent convergence’ to equalise rent charges across the city – meaning some tenants who have been paying artificially low rents would see their rents increased by an additional £2 per week.

The General Fund budget setting report has been published ahead of discussion at the meeting of Performance, Assets and Strategy Scrutiny Committee on Tuesday 27 January. The proposals will then be discussed by Cabinet on 10 February, and at Full Council on 26 February.