Peterborough City Council approves ‘most positive budget in more than a decade’
Peterborough City Council has signed off its budget for 2026/27 and a three-year financial strategy leading up to 2029.
In its Full Council Budget meeting last night (February 25), councillors approved the final 2026/27 budget and Medium-Term Financial Strategy (MTFS), presented by Cabinet Member for Finance and Corporate Governance, Councillor Mohammed Jamil (Lab).
“For the first time in many years we have a balanced budget in each of the next three financial years,” Cllr Jamil told the chamber.
“This is the most positive budget Peterborough has had in more than a decade and is largely the result of the Government’s Fairer Funding Review.”
Fairer Funding is a government funding initiative which aims to direct more financial support to areas, like Peterborough, with higher levels of deprivation and demand for services.
Following an announcement by central government in December 2025, Peterborough City Council can expect to see its funding for services increase by £76m by 2028/29, in comparison to 2025/26 – an increase of 31 per cent.
Cllr Jamil went on to highlight that the balanced budget would enable the authority to invest in:
A new swimming pool
Additional social workers
Investment in AI
Investment in a new Crisis and Resilience Fund (CRF)
Enhancing Peterborough city centre
Investment in Families First programme
The councillor noted that residents would also see a 4.99 per cent rise in their Council Tax rates.
“This is a budget that feels forward-thinking”
While the budget received generally favourable support across the chamber during the debate, many councillors – including those supporting it – voiced concerns.
“Overall, this is a budget that feels forward-thinking and is more sustainable than ever before,” said Deputy Leader of the Green Party, Cllr Nicola Day.
“[However] we still have concerns over our reserves, which remain dangerously low.”
Lib Dem group leader Christian Hogg praised not only the budget but also the spirit of the collaborative approach which had made it possible:
“Our cross party administration has not only stayed the course and not fallen apart,” he said, “we have given this council some much needed stability and this balanced budget is a great example of how by working together cross party it makes for better outcomes for our great city.”
“Our budget is only balanced because we borrowed more money”
Conservative leader Cllr Wayne Fitzgerald took the view that achieving a balanced budget was not the “miracle” some members were making it out to be:
“We balance our budget every year,” he observed “it has to be!”
“The Labour Party have not worked a miracle,” he insisted; “our budget is only balanced because we borrowed more money.”
He also echoed a recurring concern shared by many of his council colleagues:
“We have no reserves.”
“We are closer than we have been in many years to becoming financially sustainable in the long term”
While Cllr Jamil acknowledged the council’s reserve levels are indeed much lower than ideal, his party leader and Leader of the Council Cllr Shabina Qayyum insisted this budget puts the local authority in a much better position than it has been in for a long time.
“This budget is a real step change for our city,” she said, “and we are closer than we have been in many years to becoming financially sustainable in the long term.”
Following the extended yet constructive debate, 39 councillors voted in favour of the budget, with only Cllr Ahmed (Cons) voting against. 12 councillors abstained.