Council’s ‘balanced’ budget’ looks to build on city centre momentum

Derby City Council has said it is aiming to build on the regeneration momentum created in the city centre with its ‘balanced’ budget proposals.

In a special online Talking Business Live, organised by Marketing Derby earlier this week, the city council’s leadership set out their spending proposals for the 2026-27 financial year.

The council is currently consulting the public on its draft proposals, which includes around £60 million of investment into essential services over the next three years,  as well as £287 million into capital projects.

The Talking Business Live session, entitled ‘Shaping the City’s Future’ and hosted by Wayne Thomas, managing partner at Bates Weston, aimed to inform and gather feedback from the local business community.

The session heard from Councillor Nadine Peatfield, leader of Derby City Council and cabinet member for city centre, regeneration, strategy and policy, the city council’s chief executive Paul Simpson and finance director Alison Parkin.

The council’s proposals include a three-year Medium-Term Financial Plan (MTFP) from 2026/27 to 2028/29, which features:

*£26 million of investment planned for the 2026/27 financial year, with a further £33 million planned over the following two financial years.

*No redundancies or cuts to the council workforce, with some services receiving investment to grow their teams.

*£7.756 million of proposed savings achieved through continued controls on spending, careful financial management and innovative projects – such as a further £1 million of savings through a pioneering Artificial Intelligence (AI) programme.

Councillor Peatfield told the session: “I want people to see a difference on their doorstep.

“In terms of investment, we are passionate about the city centre, which is on a journey of rehabilitating and repurposing as a city centre for all.

“Everyone wants to see more people coming into the city centre to spend money and to stay.

“However, ultimately it is the people who live here who need to feel the full benefit.”

Mr Simpson said he was keen that the council’s budget built upon progress made in 2025.

He said: “2025 was a big year for Derby with the opening of the performance venue (Vaillant Live), the reopening of the Market Hall and the launch of the University of Derby’s new Business School.

“The key for us to continue the momentum to reimagine the city centre.”

Aside from the council’s own investment, Mr Simpson also highlighted the support that was coming from the East Midlands Combined County Authority to carry our enabling works at key sites, including Becketwell and the former Assembly Rooms site.

And he urged businesses to keep a ‘weather-eye’ out for other forthcoming support from EMCCA.

Paul also highlighted some of the council’s successes, including its child and social care and youth justice services being rated ‘outstanding’ by Ofsted.

Alison told the meeting that the council was in an “improving position” in terms of its finances.

She explained that the city council had now received the results of the Government’s Fair Funding Reforms, which simplify council funding, introduce multi-year allocations, and direct resources to areas most in need.

She said that the settlement for Derby was “good news” for the city.

To view details of the council’s budget proposals, and to take part in the public consultation, click here.

The consultation will be open until midnight on Friday 16 January.

The updated budget will then be considered by cabinet on 11 February before it is put before a meeting on the full council on 25 February