By Jason Lewis, Local Democracy Reporter

Council leaders in Southampton have unveiled a “budget for investment” with more than £150 million of spending planned to include bin lorries, roads, schools and libraries.

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Alongside the Labour administration’s plans to ramp up its capital programme, the £285.2 million revenue budget for 2026/27 includes a 4.99 per cent rise in council tax.

If approved next week, this means a Band D property will pay £1,998.18 to the city council.

This represents an additional £1.83 a week compared to the current year.

It is the maximum percentage council tax can be increased by without requiring a referendum.

The revenue budget is set to be the first in three years that does not require government help in the form of exceptional financial support.
It includes £20.8 million in savings requirements and £28 million of investment in new initiatives, service demands, and price and improvement pressures.

The council’s proposed five-year capital programme totals £363.9 million, with £150.72 million planned for the coming year – a £63.44 million year-on-year increase.

More than two thirds of the 2026/27 general fund capital spending would be covered by borrowing.

Major elements of the five-year programme are £10 million to address critical school building defects, £37.81 million to replace vehicles, including the complete renewal of the waste collection fleet, and a doubling of the highways budget for repairs, resurfacing and improvements.

A £1 million pilot programme to buy long-term empty privately-owned homes and bring properties back into use is set to be launched.

The local authority is also planning to invest £200,000 in a community safety fund, £400,000 to enforce fly-tipping, littering and other environmental crime, and £2 million to upgrade parks and play areas.

 Cllr Simon Letts, cabinet member for finance and resources. Photo: LDRS

Cllr Simon Letts, cabinet member for finance and resources, said: “This budget continues our commitment to investing in the things that matter most to local people – safer communities, better roads, high quality education, clean neighbourhoods, and opportunities for our young people.

“Thanks to careful financial management and the progress we have made in returning the council to a sustainable position, we are now able to put forward a budget that delivers real improvements across our city.”

Over the next three years the council’s core spending power is forecast to increase by 21 per cent, with 10 per cent from more government funding and the rest based on an assumption of 4.99 per cent annual council tax increases.

The cabinet member said the increased investments were only possible because of the additional funding in the local government settlement.

Cllr Letts said: “We are completely in balance.

“We have done all the hard work and now we have actually got a budget for investment.”