Decision details

The Cabinet considered a report of the Director of Finance that provided members with an update, as of 30^th January 2026 (Month 10), of the Council’s 2025/26 forecast revenue budget position alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30 (at Annex 2).

In terms of the Revenue Position, the forecast adverse position for 2025/26 at the end of Month 10 was estimated to be £4.946m (£15.199m at the end of Quarter 3). The details within this revenue monitoring report for Month 10 followed on from the Quarter 3 report previously presented. A forecast adverse position based on the Month 10 revenue controllable budget is £4.946m which represented a favourable movement of £10.253m from the position previously reported. As highlighted within the Quarter 3 report, the Council had explored opportunities in conjunction with its external treasury advisors to look at our current policy on capitalising interest costs for assets under construction.

The outcome of this work has resulted in a forecast one-off benefit to the Council’s General Fund Balance of £10.056m for 2025/26. Given, the in-year financial position of the Council, the level of reserves available, the approved budget reductions for 2026/27 and the budgetary gaps reported within the Council’s Medium Term Financial Strategy (MTFS), work continues across the organisation to reduce this forecast adverse variance by the financial year end.

The recent publication of the Local Government Finance Settlement provided some additional support to the Council as a result of the Fair Funding Review and the continuation of the Recovery Grant for another 3 years. Whilst this funding was welcomed, the Council must deliver within the financial resources allocated for 2026/27 onwards. The Council’s strategy to transfer much needed resources to reserves to increase the reserve position was a positive movement in ensuring the organisations financial resilience over the medium term. Further details of the current estimated position were included at Annex 1, to the submitted report.

In terms of the Capital Position, the report outlined the most up to date capital spending position for 2025/26 to 2029/30 for approved schemes. The revised Capital Programme budget for 2025/26 was £70.818m at the close of month 10 which incorporated the changes made from the annual review of the programme. The actual expenditure to 31^st January 2026 was £43.927m (62.03% of the forecast outturn).

Options/Alternatives considered:

Option 1 (preferred Option) – to approve the recommendations in the report.

Option 2 – to reject the recommendations and to propose alterative forecasts.

Resolved:

1.    That the Cabinet notes the contents of the report. Notes the forecast revenue position at the end of Month 10 at £4.946m as detailed at Annex 1, of the submitted report.

2.    That the Cabinet notes the general revenue usable reserves position for 2025/26.

3.    That the Cabinet approves the revised Capital Programme for 2025/26 including the proposed virements and notes the forecast for the financial years to 2029/30 as at the end of Month 10 as outlined in Annex 2, of the submitted report.