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.