Rutland County Council is taking steps to understand how recent global economic shocks may have an impact on the budget and financial planning.

The council agreed the most recent annual budget and medium-term financial strategy shortly before the escalation in the conflict between the US and Iran, which has sent shockwaves through the world economy and international trade.

So far, the UK has already seen a sharp rise in fuel and energy costs. Inflation, which was predicted to stay around 2%, is now expected to rise to between 3.5% and 4% and the increase cost of goods is also affecting the buying of materials in global supply chains.

Rutland County Council has a Gross Revenue Budget of £107m, which pays for the day-to-day running of local services, like public transport, waste collection and social care. It also has a Capital Programme Budget of £55m that funds structured investment in highway maintenance and community infrastructure.

Speaking at Rutland County Council's latest Cabinet meeting on Tuesday 14 April, Council Leader Christine Wise warned of the impact that global economic uncertainty could have on public finances.

"Recent events on the world stage have the potential to increase the costs that we incur when delivering local services. It could also inflate our Capital Programme costs to the point where they not only exceed original budgets but also exhaust contingency funds. Unless carefully managed, this could have a knock-on impact on our wider budget position and financial health.

"We need to review our Capital Programme to understand how it may be affected in the short and medium term. This is particularly true of any building or construction projects that haven't started yet. We need to get a sense of how high our project costs could rise, whether we can afford to deliver these projects in the same way and what might happen to wider council budgets if we don't control costs.

"This is the same due diligence and good governance that we apply to our budgets and financial planning day-in, day-out but is perhaps more important than ever. We need to act responsibly and exert maximum control over capital projects where we can manage costs down, if we have to.

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"We don't have the same kind of control when it comes to other cost pressures in our revenue budgets, such as national pay awards and demand for care services.

"We need to take extra care with our budget and keep applying the principles of financial caution and common sense that have served us so well in the past."

A report examining the impact of global economic pressures on Rutland County Council's Capital Investment Programme will be presented to Cabinet on Tuesday 12 May 2026.

A similar assessment looking at the potential impact on Rutland County Council's Revenue Budget will form the basis of a separate report to Cabinet in July.

For more information about upcoming Council meetings and reports, visit: www.rutland.gov.uk/meetings