Agenda item

This report provides the quarter one 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 reflects the increasing financial challenges facing local government around social care for both adults and children and in making provision for a growing number of children and young adults with special education needs and disabilities (SEND).

The forecast revenue outturn is indicating a £3.7m overspend but officers are continuing to seek mitigations to deliver a balanced budget by the year end.

RESOLVED that Cabinet: -

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

(b)       agreed the capital budget virements set out in appendix C1 paragraph 2, relating to schemes funded by the bus service improvement grant and the local transport plan funding; and 

(c)       approved the implementation of a freeze on all non-essential expenditure and a vacancy freeze from 1 October 2025 and until such time as the Corporate Management Board have provided Cabinet Members with assurance the forecast outturn for 2025/26 is within the parameters of the approved 2025/26 budget. Officers should also consider the extent to which savings plans can be brought forward from 2026/27.

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

Cabinet was informed that the quarter one position reflected the increasing financial challenges facing local government around social care for both adults and children and in making provision for a growing number of children and young adults with special education needs and disabilities (SEND).

Cabinet was advised that the forecast revenue outturn is indicating a £3.7m overspend but officers are continuing to seek mitigations to deliver a balanced budget by the year end.

The Chair of the Health and Adult Social Care Overview and Scrutiny Committee, Councillor Patrick Canavan addressed the Cabinet stressing that demand cannot be controlled but that it is hoped that through the scrutiny process it can be managed effectively. 

The Chair of the Children’s Services Overview and Scrutiny Committee, Councillor Sharon Carr-Brown addressed the Cabinet advising that at their next meeting they will be having a comprehensive view of the budget, and that the Committee were hoping to assist the council in every way they could to look in-depth at how things can be dealt with differently.

Cabinet members discussed the report in detail emphasising that local authorities weren’t designed to fund social care and SEND through the Council tax and expressing concern with regards to discretionary services within their portfolios being affected by finances.

The Leader expressed appreciation for the scrutiny process in this and encouraged all councillors to be part of this process.

RESOLVED that Cabinet: -

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

(b)       agreed the capital budget virements set out in appendix C1 paragraph 2, relating to schemes funded by the bus service improvement grant and the local transport plan funding; and 

(c)       approved the implementation of a freeze on all non-essential expenditure and a vacancy freeze from 1 October 2025 and until such time as the Corporate Management Board have provided Cabinet Members with assurance the forecast outturn for 2025/26 is within the parameters of the approved 2025/26 budget. Officers should also consider the extent to which savings plans can be brought forward from 2026/27.

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.