Issue - meetings

The report presents the revenue and capital budget outturn, reserves position, dedicated schools grant outturn, housing revenue account, and results of council company and partner organisations for the financial year 2025/26.

The 2025/26 general fund revenue outturn of £4.6m is in line with the quarter three forecast and confirms that demand-led social care services remain the council’s most significant financial challenge. This is particularly within children’s services which overall has overspent by (£9.1m), being 9% of the service’s budget. Planned investment and mitigation for 2026/27 will be critical to improving resilience and bringing these pressures under control.

Pressures across the main service areas were partly offset by underspends in Resources and corporate budgets.

Included in the budget were itemised savings of £9.6m with 91% achieved through service transformation, third party spend reduction, staff savings and raising additional income.

The transformation programmes over the last six years have been crucial in reducing annual ongoing expenditure with cumulative revenue savings of £56m over this period from one off investments of £45m to date.

The accumulated deficit of £180m for the dedicated schools grant at 31 March 2026 remains a significant threat to the council’s financial stability. Expenditure will continue to outstrip funding by an estimated further £200m over the next two financial years. The required SEND reform plan has been developed and if approved, central government could provide an estimated 90% contribution toward this deficit. This would still leave the council with a residual debt to fund of £38m.

Delivery of the £100m general fund capital programme was 60% spent by the year end, largely funded by government grant, with the balance carried forward into future years.

RESOLVED that Cabinet: -

(a)           noted the final outturn position for 2025/26;

(b)           agreed the general fund capital virements set out in paragraph 2 of appendix C1; and

(c)           agreed the acceptance of capital grant for the HRA as set out in paragraph 20 of appendix D.

Voting: Unanimous

Portfolio Holder: Finance

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 regulations regarding capital virements and acceptance of grants.

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 presented the revenue and capital budget outturn, reserves position, dedicated schools grant outturn, housing revenue account, and results of council company and partner organisations for the financial year 2025/26.

Cabinet was informed that the 2025/26 general fund revenue outturn of £4.6m was in line with the quarter three forecast and confirmed that demand-led social care services remained the council’s most significant financial challenge. In relation to this Cabinet was advised that this was particularly within children’s services which overall had overspent by (£9.1m), being 9% of the service’s budget, and that planned investment and mitigation for 2026/27 would be critical to improving resilience and bringing these pressures under control.

Cabinet was advised that pressures across the main service areas were partly offset by underspends in Resources and corporate budgets, and that included in the budget were itemised savings of £9.6m with 91% achieved through service transformation, third party spend reduction, staff savings and raising additional income.

Cabinet was informed that the transformation programmes over the last six years had been crucial in reducing annual ongoing expenditure with cumulative revenue savings of £56m over this period from one off investments of £45m to date.

Further to this Cabinet was informed that the accumulated deficit of £180m for the dedicated schools grant at 31 March 2026 remains a significant threat to the council’s financial stability, and that expenditure will continue to outstrip funding by an estimated further £200m over the next two financial years.

Cabinet was advised that the required SEND reform plan had been developed and if approved, central government could provide an estimated 90% contribution toward this deficit, in relation to this Cabinet was informed that this would still leave the council with a residual debt to fund of £38m.

Cabinet was advised that delivery of the £100m general fund capital programme was 60% spent by the year end, largely funded by government grant, with the balance carried forward into future years.

RESOLVED that Cabinet: -

(a)           noted the final outturn position for 2025/26;

(b)           agreed the general fund capital virements set out in paragraph 2 of appendix C1; and

(c)           agreed the acceptance of capital grant for the HRA as set out in paragraph 20 of appendix D.

Voting: Unanimous

Portfolio Holder: Finance

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 regulations regarding capital virements and acceptance of grants.

The report presents the revenue and capital budget outturn, reserves position, dedicated schools grant outturn, housing revenue account, and results of council company and partner organisations for the financial year 2025/26.

The 2025/26 general fund revenue outturn of £4.6m is in line with the quarter three forecast and confirms that demand-led social care services remain the council’s most significant financial challenge. This is particularly within children’s services which overall has overspent by (£9.1m), being 9% of the service’s budget. Planned investment and mitigation for 2026/27 will be critical to improving resilience and bringing these pressures under control.

Pressures across the main service areas were partly offset by underspends in Resources and corporate budgets.

Included in the budget were itemised savings of £9.6m with 91% achieved through service transformation, third party spend reduction, staff savings and raising additional income.

The transformation programmes over the last six years have been crucial in reducing annual ongoing expenditure with cumulative revenue savings of £56m over this period from one off investments of £45m to date.

The accumulated deficit of £180m for the dedicated schools grant at 31 March 2026 remains a significant threat to the council’s financial stability. Expenditure will continue to outstrip funding by an estimated further £200m over the next two financial years. The required SEND reform plan has been developed and if approved, central government could provide an estimated 90% contribution toward this deficit. This would still leave the council with a residual debt to fund of £38m.

Delivery of the £100m general fund capital programme was 60% spent by the year end, largely funded by government grant, with the balance carried forward into future years.

The Portfolio Holder for Finance presented two reports, The Financial Outturn and the Medium-Term financial plan, copies of which had been circulated to each Member and copies of which appear as Appendices ‘B’ and 'C' to these Minutes in the Minute Book. The Financial Outturn Report presented the revenue and capital budget outturn, reserves position, dedicated schools grant outturn, housing revenue account, and results of council company and partner organisations for the financial year 2025/26.

The 2025/26 general fund revenue outturn of £4.6m was in line with the quarter three forecast and confirms that demand-led social care services remain the council’s most significant financial challenge. This is particularly within children’s services which overall has overspent by (£9.1m), being 9% of the service’s budget. Planned investment and mitigation for 2026/27 will be critical to improving resilience and bringing these pressures under control. Pressures across the main service areas were partly offset by underspends in Resources and corporate budgets. Included in the budget were itemised savings of £9.6m with 91% achieved through service transformation, third party spend reduction, staff savings and raising additional income.

The transformation programmes over the last six years have been crucial in reducing annual ongoing expenditure with cumulative revenue savings of £56m over this period from one off investments of £45m to date.

The accumulated deficit of £180m for the dedicated schools grant at 31 March 2026 remains a significant threat to the council’s financial stability. Expenditure will continue to outstrip funding by an estimated further £200m over the next two financial years. The required SEND reform plan has been developed and if approved, central government could provide an estimated 90% contribution toward this deficit. This would still leave the council with a residual debt to fund of £38m.

Delivery of the £100m general fund capital programme was 60% spent by the year end, largely funded by government grant, with the balance carried forward into future years. A number of issues were discussed in the discussion of these reports including:

·       Children’s Services - A substantial increase in children entering care was reported. Costs were driven primarily by numbers rather than increasing costs. It was reported that external review work had been commissioned to identify improvement opportunities.

·       Adult Social Care - An overspend had occurred for the first time. This was due to demand increases including care home placements and domiciliary care provision. It was noted that cost control mechanisms were effective and that pressures were largely demand-driven and systemic

·       Budget Management and Monitoring - It was explained that financial performance was monitored on a monthly basis. Overspends were managed through, departmental accountability, corporate oversight and exception reporting.

·       Financial Oversight and Scrutiny - It was emphasised that strengthened financial discipline and robust scrutiny arrangements would be essential. Councillors highlighted the need for close monitoring of budget performance and early identification of variances. The importance of clear and transparent financial reporting to support effective oversight was also noted.

·       Reliance on Asset Disposals Concerns were raised regarding the reliance on  ...  view the full minutes text for item 20