The level of council tax
Council tax is the main source of locally raised income for Cheltenham and is used to meet the difference between the amount we propose to spend and the amount we receive from other sources such as business rates and government grants.
The proportion of our funding raised from council tax has significantly increased in the decade to 2026 as funding from central government has deteriorated sharply. As a result, council tax is considered an increasingly important mode of local government financing. This is reflected in the central government decision to allow district councils to increase council tax by £5 per annum or up to 2.99%, whichever is higher. Locally the council has had to consider the levels of expected growth in Cheltenham and the financial sustainability of any increase in council tax for our residents.
At the February 2026 council meeting, councillors approved an overall net £19.24million budget for 2026/27 and a 2.99% council tax increase, bringing Cheltenham’s band D rate to £252.11. This contributes to maintaining essential services while addressing increased demand and the fragility of national funding streams.
To strengthen its financial resilience, the council approved:
- A savings programme of £1.053million, including reviews of vacant posts, discretionary services and capital plans, with a focus on ensuring no adverse impact on service delivery.
- Growth funding of £159,334, targeted at areas essential for maintaining service standards.
- Contributions to the general fund balances, increasing them to £1.5million, reinforcing the council’s ability to respond to future pressures.
Service delivery
Cheltenham Borough Council continues to protect and maintain high‑quality frontline services despite the ongoing financial pressures facing local government. The 2026/27 budget, approved unanimously on 27 February 2026, reflects the council’s commitment to supporting residents and safeguarding essential services during a period marked by high inflation, increasing service demand and sustained national funding challenges.
Over the past decade, the council has consistently invested in the town to ensure Cheltenham remains a place where everyone can thrive. This commitment continues in the 2026/27 budget through targeted spending that supports communities, drives economic growth and sustains the town’s assets. The approved budget includes:
- £34,050 additional investment in Cheltenham’s green spaces, supporting environmental commitments and enhancing public areas.
- £79,095 increased planned spending on building maintenance, helping preserve important civic and heritage buildings such as Pittville Pump Room and the Town Hall.
- Continued investment in the council’s buildings and assets to ensure that facilities remain safe, accessible and fit for purpose.
- A refreshed approach to fees and charges, increasing them in line with inflation where appropriate, while balancing market conditions and affordability.
These investments build on previous years’ regeneration and public‑realm projects, and they take place at a time when the council like local households faces rising energy costs, borrowing costs and inflationary increases in contracts and materials.
The council’s 2025–28 corporate plan remains at the heart of its delivery priorities. The approved 2026/27 budget continues to support these.
Working together to plan for Cheltenham’s future
A formal budget consultation took place during December 2025 and January 2026. Interested parties including businesses, tenants, residents, staff and trade unions were encouraged to comment on the budget proposals. The council’s response to these submissions was published as part of the final budget papers in February 2026.
Spending plans for 2026-27
| Category | 2025-26 - Amount in £’000 | 2026/27 - Amount in £’000 |
|---|---|---|
|
Chief executive |
2,423 |
4,023 |
|
Communities and Place |
13,789 |
14,289 |
|
Finance, assets and regeneration |
7,698 |
7,054 |
|
Financing and investment income and expenditure |
(1,709) |
(2,405) |
|
Capital charges |
(3,361) |
(2,456) |
|
Use of balances and reserves |
903 |
(682) |
|
Savings |
0 |
(1,054) |
|
Growth |
0 |
159 |
|
Transfer to/from general balances |
(102) |
316 |
|
Net spending |
19,460 |
19,244 |
| Financed by: | 2025-26 - Amount in £’000 | 2026/27 - Amount in £’000 |
|---|---|---|
|
Government grants |
6,814 |
5,903 |
|
Business rates |
1,667 |
1,907 |
|
Collection fund |
98 |
87 |
|
Which leaves the remaining council tax requirement of: |
10,881 |
11,347 |
How our budget compares with last year
| Budget comparison | Amount in £’000 |
|---|---|
|
Projected net spending in 2025-26 |
19,460 |
|
Net decrease cost of services |
1,637 |
|
Growth |
159 |
|
Savings |
(1,054) |
|
Reserves/Other |
(958) |
|
Projected net spending in 2026-27 |
19,244 |
For further information on the budget including a full list of improved services and savings please contact financial services on 01242 262626. A full breakdown of the budget is available on our budgets and spending pages.