Issue - items at meetings - Council Budget Monitoring 2025/26 at Quarter Two

This report provides the quarter two 2025/26 projected financial outturn information for the general fund, capital programme, housing revenue account (HRA) and Dedicated Schools Grant (DSG).

The quarter one position was a projected overspend of £3.7m reflecting the increasing financial challenges facing local government from social care demand within both adults and children’s services. Demand in these areas has grown further over the second quarter but with reduced expenditure in other services limiting the increase in the projected overspend to £4.2 million.

RESOLVED that Cabinet: -

(a) noted the budget monitoring position for quarter two 2025/26;

(b) requested a detailed report to December Cabinet from the Corporate Director for Children’s Services on the High Needs Dedicated Schools Grant expenditure forecast and available mitigation measures in 2025/26. This report will need to seek Council approval for any additional resources over the approved 2025/26 budget; and

(c) requested the council’s senior leadership team and portfolio holders consider what further action can now be taken to ensure the actual financial outturn is within the Council approved budget for 2025/26, including bringing forward any planned savings already approved by Council for 2026/27 that can be delivered early.

Voting: Unanimous

Portfolio Holder: Finance

Reason

To comply with accounting codes of practice and best practice which requires councils to regularly monitor the annual budget position and take any action to support the sustainability of the council’s financial position.

To comply with the council’s financial regulation concerning approval for budget virements.

The Portfolio Holder for Finance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

Cabinet was advised that the report provided the quarter two 2025/26 projected financial outturn information for the general fund, capital programme, housing revenue account (HRA) and Dedicated Schools Grant (DSG).

In relation to this Cabinet was informed that the quarter one position was a projected overspend of £3.7m reflecting the increasing financial challenges facing local government from social care demand within both adults and children’s services, and that demand in these areas had grown further over the second quarter but with reduced expenditure in other services limiting the increase in the projected overspend to £4.2 million.

Chair of the Health and Adult Social Care Overview and Scrutiny Committee, Councillor Patrick Canavan addressed the Cabinet advising that the Committee had recently had a budget meeting. In addition, Councillor Canavan raised the issue of vacant properties.

Cabinet members spoke of their frustrations with the budget and of the pressures on adult social care and children’s services.