Agenda item

Report for decision.

ORDERED that Executive:

1. Approve budget virements over £250,000 within the revenue budget detailed at Appendix one of the report.
2. Approve budget virements over £250,000 within the Capital Programme detailed at paragraph 4.47 of the report.
3. Approve the inclusion of new schemes and additions to existing schemes to the Capital Programme totalling £0.519m for 2025/26, of which £0.454m were externally funded and £0.065m was from existing Council funded resources (detailed in Appendix 5). Subject to approval this would increase the approved 2025/26 Capital Programme budget to £88.094m.

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 2025/26 as at Quarter Two, 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 £1.804m (1.3%) at year end after the proposed use of central contingences and other budgets.
2. Note that Directors had submitted recovery plans and mitigations aimed at reducing their forecast budget pressures and acknowledged the ongoing requirement for Directors to continue refining and implementing these plans to achieve a balanced budget for the Directorates by the end of 2025/26. In support of this corporate revenue budget spending controls would continue to be applied during 2025/26.

The Executive Member for Finance submitted a report which provided an update on the Council’s financial performance at Quarter Two 2025/26 and sought approval for a number of financial actions. The report requested approval of budget virements over £250,000 within the revenue budget and the Capital Programme, the inclusion of new schemes and additions to existing schemes totalling £0.519m in the 2025/26 Capital Programme and noted the forecast year-end financial outturns for revenue and capital budgets. The report also highlighted budget pressures, the forecast revenue position of £1.804m overspend after proposed mitigations and confirmed that Directors had submitted recovery plans aimed at achieving a balanced budget, supported by continued corporate spending controls.

The Quarter Two report highlighted a projected revenue budget pressure of £7.813m across Directorates and Central budgets, which was expected to reduce to £1.804m (1.3%) by year-end following the planned use of £6.009m in central contingencies and other budgets. This approach included offsetting pressures such as unachieved savings.

The main areas of budget pressure remained within Children’s and Adult Social Care, Environment and Community Services, and Strategic Commercial Properties, driven by increased costs and under-achievement of income targets. Directors had submitted recovery plans and were required to continue implementing measures to achieve a balanced position, supported by corporate spending controls throughout 2025/26. It was noted that £7.085m of savings were forecast as undeliverable in 2025/26.

Forecast usable unrestricted revenue reserves at 31 March 2026 were £25.808m, in line with the Reserves Policy approved by Council. The Dedicated Schools Grant deficit was forecast at £9m for 2025/26, increasing the cumulative deficit to £31.213m by March 2026, representing a significant financial risk.

The Capital Programme included £0.519m of new schemes and additions, increasing the revised budget to £88.094m, with forecast outturn at £67.144m due to slippage into future years. It was also noted that £6.132m of qualifying revenue expenditure was planned to be funded from Flexible Use of Capital Receipts for Transformation, and the level of debtors as at 30 September 2025 was reported.

The Mayor stated that the work undertaken by the Council had meant the organisation was stable and expressed his thanks the Executive Member Finance and the Finance department for their continued efforts.

The Executive Member for Finance commented that while progress was being made, there was more work to do.  

OPTIONS

The alternative would be to not approve the revenue budget virements over £250,000 and the changes to the Council’s capital programme, and to not report on the Council’s forecast year-end financial outturn for the financial year 2025/26. This would not enable the Executive to discharge their responsibilities to manage and control the revenue budget, capital programme and overall balance sheet position of the Council.

ORDERED that Executive:

1. Approve budget virements over £250,000 within the revenue budget detailed at Appendix one of the report.
2. Approve budget virements over £250,000 within the Capital Programme detailed at paragraph 4.47 of the report.
3. Approve the inclusion of new schemes and additions to existing schemes to the Capital Programme totalling £0.519m for 2025/26, of which £0.454m were externally funded and £0.065m was from existing Council funded resources (detailed in Appendix 5). Subject to approval this would increase the approved 2025/26 Capital Programme budget to £88.094m.

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 2025/26 as at Quarter Two, 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 £1.804m (1.3%) at year end after the proposed use of central contingences and other budgets.
2. Note that Directors had submitted recovery plans and mitigations aimed at reducing their forecast budget pressures and acknowledged the ongoing requirement for Directors to continue refining and implementing these plans to achieve a balanced budget for the Directorates by the end of 2025/26. In support of this corporate revenue budget spending controls would continue to be applied during 2025/26.

REASONS

To enable the effective management of finances, in line with the Council’s Local Code of Corporate Governance, the Scheme of Delegation and financial regulations.