Decision details

To provide Executive with an integrated overview of the Council's performance, financial position and strategic risks at Quarter One 2026/27.

ORDERED that Executive:

1.     Approve budget virements over £250,000 within the revenue budget (Appendix F1).

2.     Approve budget virements over £250,000 within the capital programme (Appendix F5).

3.     Approve the inclusion of new schemes and additions to existing schemes to the Capital Programme totalling £3.120m for 2026/27, which were all externally funded to either new or existing schemes (detailed in Appendix F5), resulting in a new Capital Programme budget of £94.940m for 2026/27.

AGREED that Executive:

1.     Note the Council's financial performance and forecast year-end financial outturns for revenue and capital budgets for the financial year 2026/27 as at Quarter One, highlighting the budget pressures and the forecast year-end position if no further action was taken. At present, the revenue budget was forecast to be under pressure by £8.479m (4.22%) at year end after the proposed use of remaining available corporate contingencies and other centrally held resources, although this should not have been viewed as the anticipated year-end outturn as further work would be undertaken to mitigate the current forecast pressure.

2.     Note that work would be ongoing to address these pressures and Directors would continue to actively manage forecast budget pressures through the Council's Integrated Performance and Financial Management Framework, including the completion of Quarter One Officer and Member Integrated Performance and Budget Clinics. Through these arrangements, financial performance, service delivery and risks had been jointly reviewed, with a range of mitigating and corrective actions agreed to address forecast pressures. Executive acknowledged the requirement for Directors to continue delivering, monitoring and refining these actions, maintaining robust financial controls and ensuring expenditure remained aligned with approved budgets and the Medium-Term Financial Plan.

3.     Note that the Leadership Management Team and Directors acknowledged the severity of the current forecast position, and Directors were required to complete a Financial Recovery Plan that detailed the financial controls being implemented to strengthen governance and challenge expenditure and were expected to identify in-year financial recovery actions that would generate measurable financial benefits during 2026/27.

4.     Note that the current forecast overspend, if not addressed, would impact on the level of usable unrestricted revenue reserves and would impact on progress towards achieving the Council's preferred financial resilience targets as set out in the Reserves Policy. This reinforced the need for immediate action to reduce forecast overspends and protect reserves.

5.     Note the progress that had been made against the Council Plan 2026-2029 as set out in detail at Appendix One.

6.     Note the Strategic Risk Register content as at the end of Quarter One 2026/27 (Appendix Three).

REASONS

Executive had responsibility for oversight of the Council's strategic performance, financial management and risk arrangements and required regular information to fulfil these responsibilities.

The recommendations provided assurance regarding progress against delivery of the Council Plan, the forecast financial position and management of strategic risks at Quarter One 2026/27. They also ensured that budget virements, amendments to the capital programme and other associated governance decisions were considered and approved in accordance with the Council's Constitution and Financial Procedure Rules.

The integrated approach adopted within the report supported informed decision-making by bringing together performance, financial and risk information, enabling Executive to understand both delivery achievements and areas requiring further management intervention.  

OPTIONS

Executive could have opted not to approve the revenue budget virements over £250,000 and the changes to the Council's Capital Programme, and to not report the Council's forecast outturn positions at Quarter One for the financial year 2026/27. This would not have enabled the Executive to discharge their responsibilities to manage and control the revenue budget, capital programme and overall balance sheet position of the Council.