Published on 23rd December 2025

Image reads: Cheltenham's draft budget proposals are out for consultation. Deadline for comments 31 January 2026.

Cheltenham’s draft budget proposals for 2026/27 have been published and are now out for public consultation. 

Residents, businesses, and partners can view the full council report and find details of the budget consultation, online at cheltenham.gov.uk/budget. Comments can be emailed to [email protected].

Like many across the country, the council has faced major financial challenges over the last few years. More than ten years of government austerity has led to major cuts in the funding it receives, as well as a period of high inflation, the Covid pandemic and the cost-of-living crisis.  A projected funding gap requires careful planning to balance the budget. 

Local government reorganisation, which could see major change to the way councils are run locally within the next two to three years, also provides useful background for the proposals, as well as the government’s latest funding announcement and planned changes to how councils are funded.

For Cheltenham, this means a reduction in government funding of 18.6% over the next three years, making the council more reliant on council tax and locally generated income to fund services.

The council is now inviting everyone to have their say and help shape the final budget ahead of its approval in February 2026.

Key proposals in the draft 2026/27 budget

  • Ongoing delivery of the council’s 2025–28 corporate plan priorities, including: investing in Cheltenham’s future with the Golden Valley development; responding to the climate emergency; supporting strong and safe communities; delivering and maintaining high quality homes; and taking care of public money.
  • A proposed 2.99% increase in council tax, to help protect local services as national funding reduces.
  • Continued investment in the council’s buildings and assets.
  • A review and update of fees and charges, increasing them for inflation when it makes sense, while keeping in mind market conditions and affordability.
  • Careful review of spending plans and borrowing to make sure future investments are affordable and can be maintained over time.

Cllr Peter Jeffries, cabinet member for finance and assets, said: “Like many councils across the country, Cheltenham has been operating in an extremely challenging financial environment. More than a decade of reduced government funding, combined with high inflation and the ongoing cost-of-living pressures, has significantly impacted local government finances.

“Even so, we remain firmly committed to protecting vital services, spending public money carefully and continuing to deliver the priorities in our 2025–28 Corporate Plan, from addressing the climate emergency to reducing inequalities and preparing for the future.

“Public feedback is a vital part of this process, and I would strongly encourage residents, businesses and partners to take part in the consultation. All responses will help inform the final budget proposals.”

The budget consultation runs until 31 January 2026. Feedback will be carefully considered before final proposals are presented to cabinet and full council in February.

For media enquiries, contact: communications, telephone 01242 264231, email [email protected].