Norfolk County Council has begun its budget-setting process for 2027/28, with a £35.92m gap still to be closed and a 4.99% council tax rise already baked into planning assumptions.

The figure forms part of a much larger £148.53m shortfall across the council's Medium Term Financial Strategy, which has been extended to cover the 2030/31 financial year.

Councillors were told that if the council tax rise fell below 4.99%, additional departmental savings would need to be found. The Government's fair funding review is expected to affect Norfolk's local government settlement, with any changes anticipated later in the year.

Detailed savings proposals are due to go before Cabinet in October 2026, when they will also be subject to public consultation. The Strategic and Corporate Select Committee agreed it would provide formal input at that stage.

Concerns were raised at the meeting about the deliverability of departmental savings targets, with members asking for assurance that cuts would be stress-tested against the council's statutory responsibilities. Cabinet Member Cllr Justine Thomas clarified that no service cuts were proposed, describing the approach as "service transformation" rather than reductions.

The Norfolk Fire and Rescue Service drew particular attention, with a £1.5m savings target prompting calls from committee members for a letter to government arguing that the fire service is underfunded on a per-capita basis compared to urban areas. The Cabinet Member gave assurance there would be no workforce reductions or fire station closures.

Questions were also raised about the Norwich Castle Museum refurbishment, with officers confirming costs had reached an estimated £34m by the end of March 2026. The final figure remains unknown while contractual issues are resolved.

Norfolk County Council aims to keep its reserves at 5% of the revenue budget as a contingency against in-year financial variances.