Cambridgeshire County Council approves budget
Council tax is set to rise by the maximum amount the government will allow to raise funding for roads, social care, and schools
Cambridgeshire County Council has approved its budget for 2025/26, with a 4.99% Council Tax increase and investment in road maintenance, social care, and new schools. The council faced a £35.1 million budget shortfall, with 73% of its net spending now funded through Council Tax.
More than £56 million has been allocated to highways maintenance, including road and pavement repairs, drainage improvements, and upgrades to traffic lights and safety barriers. Council Leader Cllr Lucy Nethsingha said: “We have listened to residents, which is why we are investing more than £56 million in highways maintenance.” The council stated that previous underinvestment had contributed to a £600 million backlog in required repairs.
Children’s services will receive an additional £9 million for children who become looked after, £4.7 million for home-to-school transport, and £920,000 to expand special educational needs (SEND) services. Adult social care funding includes £3 million to help care providers manage rising costs and an £8 million increase to cover a 5% rise in the Real Living Wage.
The council said financial pressures included increased demand for services, inflation, and market challenges. Between 2020 and 2024, the number of children in Cambridgeshire with Education, Health and Care Plans (EHCPs) increased by 70%, contributing to rising costs in SEND and home-to-school transport. Cllr Elisa Meschini, Deputy Leader, said: “We want to think differently, intervene earlier, and engage with our residents, which is why we have a plan for the next five years.”
The budget also includes £6 million from the Household Support Fund to assist vulnerable households, and £1.3 million for improvements to libraries. The council has stated that its ‘Our Future Council’ strategy aims to improve efficiency and productivity while continuing to provide services.
The 4.99% Council Tax rise, which includes 2% ring-fenced for adult social care, is expected to generate £20 million. For Band A-D properties, this will mean an increase of between £1.04 and £1.55 per week.
The council’s budget-setting process included scrutiny from policy and service committees, a public consultation, and input from local authorities, business representatives, and trade unions. The final Local Government Finance Settlement will provide Cambridgeshire with £98 million in central government funding for 2025/26, but future funding could be affected by the upcoming Comprehensive Spending Review and government plans for local government reorganisation.
A £229,000 reduction in the Cambridgeshire and Peterborough Combined Authority Transport Levy has freed up additional funding, which the council has allocated to highways maintenance. The budget was formally approved at a Full Council meeting on 11 February.