South Gloucestershire Council says it can balance its budget for the next two years by increasing council tax, making savings and using financial reserves.
The authority’s draft budget for 2026-27 will be debated at a full council meeting on February 11.
It follows a public consultation last autumn and comes amid continued uncertainty over long- term government funding for councils.
Like many local authorities, South Gloucestershire faces rising demand for statutory services, while costs for maintaining local infrastructure continue to increase.
Council leaders argue these pressures are growing faster than inflation and government funding, leaving councils increasingly reliant on efficiencies, higher charges and council tax rises.
To close the gap, the council plans to increase council tax, draw on reserves, make further efficiencies and change how some services are delivered.
Government forecasts assume councils will raise council tax by up to 4.99 per cent each year — an approach that, according to the council, prompted frustration among some residents during the consultation, particularly over the impact of council tax increases.
The council says public feedback has influenced some spending decisions.
Investment will continue in occupational therapy and home adaptation services for older and disabled residents, although charges and delivery models will be reviewed to reduce long-term costs.
Despite the tight financial position, the draft budget includes continued funding to support families with food during school holidays, at least until the end of next summer.
The council also highlights investment in transport infrastructure, recycling services and affordable housing.
Over the past year, three new children’s homes have opened locally, which the council says has improved outcomes for young people in care and reduced spending on out-of-area placements.
Further investment is planned in schools, including expanded special educational needs provision.
South Gloucestershire Council leader, Cllr Maggie Tyrrell, said: “I am pleased that we can present a balanced budget, thanks to the commitment and dedication of the public servants who work for the council who do so much for local people.
“I am also pleased that we will be able to make investments and prioritise spending according to our priorities and that will continue to help local people.
“To allow us to do this, we will use our reserves; we will need to increase council tax in the way government has assumed when they set the amounts they give us; and we will need to increase our fees and charges so that people using services that are not free are covering the cost of delivering them.
“There are positives in this budget, and we are able to make some of the investments we’d like to, including to support families to feed their children during the school holidays, for example, as well as using our powers in planning to increase the supply of affordable homes.
“In difficult times we have been able to demonstrate that we will invest where we can, to make local people’s lives better.
“In the past year, for example, we have set up three new children’s homes in the area, to give the young people in our care better support locally in ways that also save us money.”