The uncertain funding future faced by local government has come into focus as the council invites people to have their say on next year’s budget.
Published: Thursday, 20th November 2025
Facing a significant financial test in future years, Cherwell District Council has worked hard to identify efficiencies and savings and is consulting on a balanced budget for 2026/27 with £1.785m of new savings proposed.
As in previous years, the cost of providing services is increasing, while the money councils receive has not kept pace, with Cherwell anticipating a significant reduction in resources.
In response, the council has identified savings proposals for 2026/27 and is developing a transformation programme that aims to find new and smarter ways of working to protect frontline services in future years.
People can have their say from Thursday, 20 November, with the consultation drawing to a close on Friday, 19 December.
Councillor David Hingley, Leader of the Council, said: “Cherwell manages its finances with great care and foresight but demand for our services is growing and the income we receive does not keep pace.
“The high demand for temporary housing and the cost of introducing kerbside glass collections will put pressure on next year’s budget, and at the same time we are faced with changes to government grant funding which could divert millions of pounds away from our district. As such, I am calling on government to put in place realistic and sustainable funding arrangements so that councils like Cherwell can plan ahead with certainty.
“We will always take responsible financial decisions that protect the key services our residents rely on. Next year’s budget proposals aim to lessen any impact on front line services whilst we push ahead with a transformation programme to make the council as effective and efficient as possible.
“We are a council that listens to its residents and businesses and will be reviewing all of the feedback the public provides in detail before putting forward our final plans. I urge everyone to take part in our consultation and have their say.”
Efficiency savings
The transformation programme being developed includes a review of the council’s buildings, using digital technology to make services easier to access, and working more efficiently as a council with partners.
It will identify efficiencies, income opportunities, and potential service reductions, while also investing in new ways of working and a lower-cost operating model. It is focused on the planning, environmental services, and customer engagement areas of the council.
The council also proposes to put up its share of the council tax by £5 a year for band D properties.
Uncertain funding arrangements
The government has announced plans to fundamentally redistribute the grant funding it gives to councils: this could see millions of pounds diverted away from Cherwell to other parts of the country.
Cherwell does not expect to receive any information from government on the specific financial implications of this until late December. Coming on top of the long-delayed resetting of business rates, it is another cause of uncertainty for councils.
Therefore, the council can only base its budget proposals on modelling and may need to adjust its 2026-27 budget once details of grant funding become available.
Investing to save
It is proposed that the 2026/27 capital budget could include investments in new temporary accommodation to alleviate homelessness in the district. This will allow the council to spend less on emergency temporary accommodation, such as hotels, for those experiencing homelessness, for example.
The budget also proposes modest, routine investments at properties such as Bicester Leisure Centre, Franklin’s House and Castle Quay to protect these assets and keep them operating at the standard the public expects.
Next steps
The budget consultation runs from Thursday, 20 November to Friday, 19 December 2025.
Residents’ feedback will help shape budget deliberations scheduled for the council’s Executive meeting on 3 February 2026. The final decision on next year’s budget is expected at the full council meeting on 23 February 2026.
For further details and to participate in the consultation, visit cherwell.citizenspace.com.