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Luton Borough Council

24/02/2026 - Council agrees boost for frontline services and more investment in local communities

Luton Council has approved its budget for 2026/27.

Luton Council last night (Monday 23 February) approved its 2026/27 budget, agreeing more than £30 million in additional investment to protect frontline services, support vulnerable residents and deliver visible improvements across the town, while strengthening the council’s long-term financial resilience.

Headline upcoming investments and support agreed at last night’s meeting:

A £123.8 million building and improvement programme to invest in homes and the town’s future. Around 500 new homes will be built over the next two years.

This also includes buying properties to reduce the need for temporary accommodation, and building The Stage, a new town centre development with 292 homes (84 of them affordable), shops and business space, a performance venue, and a new public square. Up to £12 million will also be spent improving public spaces in the town centre.

Funding has also been set aside to build two new schools for children with special educational needs and disabilities (SEND).

The council is also investing £5 million to make visible improvements across communities. This includes refurbishing all 60 council-managed playgrounds and upgrading sports and leisure facilities. The investment will also fund new traffic enforcement cameras and a major new road safety programme around schools.

£29 million is also being invested to protect and improve core services so there will be no cuts to those services residents currently receive and this includes extra funding for children’s services and adult social care, where demand is extremely high.

As previously indicated, council tax will rise by 4.99%. The Council’s Council Tax Support Scheme and Hardship Fund will also rise and continue to support residents facing financial difficulties and a new Resilience Fund will bring together crisis support streams into a single grant for those eligible.

Cllr Rob Roche, Portfolio Holder for Finance at Luton Council, said, “This budget comes at a time of economic uncertainty, but our priorities are clear - protect vital services and invest in Luton’s future.

“Residents have told us they care about jobs, housing, safety, cleaner streets and opportunities for young people; and this budget delivers on those.

“With this budget we aim to keep the council financially stable, support vulnerable residents, manage growing social care demand and improve the parks, roads and community facilities people rely on every day. By investing responsibly and strengthening our financial resilience, we are making every pound work harder for Luton.”

The full budget details can be found on the council’s website.

The council will continue to offer a Council Tax support scheme and hardship fund for those most in need.

People can also find out whether they are entitled to extra support by visiting the Luton Supporting You website, which also includes advice, resources and guidance for anyone struggling financially.
© 2026 Luton Council, Town Hall, Luton LU1 2BQ