Derby City Council has released a balanced budget proposal that sets out planned investment of close to £60 million from 2026 to 2029. The financial plan, due for Cabinet review later this month, positions the authority to maintain essential services while rebuilding resilience after years of rising costs.
The Medium-Term Financial Plan details £26 million of investment for 2026/27 with a further £33 million earmarked for the two years that follow. The council reports sustained pressure on local services over the past decade, with adult social care driving much of a £101 million rise in demand-led spending. Savings of £112.5 million have already been delivered since 2016/17 to keep core services operating.
The Government’s Fair Funding Reforms are expected to reshape how local authorities receive financial allocations. Final details have not yet been confirmed. Any uplift could enable Derby to channel new funds into priority services after years of constrained budgets.
The 2026/27 plan includes £7.76 million in savings through tighter spending controls and operational efficiencies. Projects underway include an artificial intelligence programme forecast to reduce costs by nearly £1 million. The council states there are no proposals for staffing reductions and expects future investment to create new roles in areas with sustained demand.
Council Tax is expected to rise by 4.99% in line with Government assumptions, with 2% allocated to social care. Proposed changes to the Council Tax Support Scheme, designed to extend help to low-income households, could provide an additional £1.4 million in relief.
Planned investment aligns with the Council Plan for 2025 to 2028, which prioritises community safety, poverty reduction partnerships and strengthened support for vulnerable residents. The financial strategy places renewed focus on rebuilding reserves to help the authority manage ongoing pressures facing local government.
