Southampton City Council sets out draft budget to boost investment in communities

Southampton City Council has published its draft budget for 2026/27, outlining plans to invest in community safety, young people, local infrastructure and frontline services, following what it describes as a significant financial turnaround over the past 18 months.

The council said it has saved £38 million in the current financial year through service modernisation and improved demand management, helping to return the authority to a more sustainable financial footing. Recent changes to Government funding allocations will also see Southampton receive millions of pounds in additional support from April to help meet rising demand for services. As a result, the council will no longer require Exceptional Financial Support (EFS) from Government.

The draft budget sets out a series of new investment proposals aimed at delivering visible improvements across the city. Plans include the creation of a new Community Safety Fund to support crime prevention initiatives, alongside a £10 million programme to upgrade school buildings to ensure children are educated in safe and modern environments.

Support for young people also features prominently, with £100,000 allocated for small grants to projects delivering activities and prevention initiatives. Environmental enforcement would receive a £400,000 boost, while almost £2 million is earmarked to improve parks and play areas. The highways budget would be doubled to speed up road repairs, resurfacing and wider safety improvements.

Like many councils across the country, Southampton is proposing a 4.99% increase in council tax, equivalent to £1.83 per week for the average Band D property.

The budget will be debated by councillors at a meeting of Full Council on Wednesday 25 February.

Councillor 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.

“We are able to do this thanks to a significant increase in our government funding and I would like to extend my thanks to the government ministers who listened to our funding concerns and acted to start to put things right. I’m proud to present a budget that invests in the city and its people.”