Issue - meetings

A report providing an update, as at 30^th June 2025 of the Council’s 2025/26 forecast revenue budget position, the financial forecast of the Dedicated Schools Grant and the Housing Revenue Account, alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30.

Lee Walsh presented the report. It was highlighted that there were a lot of assumptions in the report due to it being quarter 1 data. Planned mitigations were discussed, particularly around creating capacity on transformations.

It was noted that there was £33.774m in earmarked and reserved grants, and that the adverse weather reserve was an estimate. It was noted that, regarding the Dedicated Schools Grant (DSG), Oldham was one of the few authorities still in surplus. The Housing Revenue Account (HRA) was in surplus of £3.34m at the end of 2024/25. An update was provided on the Capital Investment programme.

Members queried what practical actions would be undertaken to achieve the planned mitigations for Adult Social Care, and it was noted that the transformation team was looking at support packages and out of borough placements to see whether any could be brought back in borough, and that work was underway with the ICB to deliver those savings.

Members also questioned whether there were any common themes for the amber and red parts of the approved budget reductions. It was noted that packages were being looked at, making sure that there was best value for money and that reviews of packages require staff to carry out complex reviews, which presents its own challenges. It was highlighted that Place was moving in the right direction, due to optimising rounds. Workforce pressures were noted as being due to significant changes in leadership and transformation of work forces which had led to delays in delivery.

Members queried when fruition would be seen on back in borough placements. It was advised that Oldham Total Care had five vacant beds which the council was negotiating for to ensure they were occupied.

Members queried why the DSG is a national issue and whether there was any good practice that could be being learned from elsewhere. Members were advised that pretty much every local authority was in the same position, highlighting that Oldham was proactive when others weren’t, but that Oldham was catching up, due to demand outstripping available resources.

Members noted that the budget in March 2025 planned to balance the budget without the use of reserves, and that £20m was a lot of overspend at the first reporting point. It was noted that the red and amber savings were part of the £20m overspend forecast, not additional to it. It was also noted that there is a structural problem in local government finance in that if demand is higher, the council still has to provide the services, as well as it being the right thing to do. It was noted that other authorities were in a similar position with similar issues. It was highlighted that the government spending review was expected to deliver more funding. The work of the finance delivery board, chaired by leadership, which had been set up was noted.

Members highlighted the overspend in Table 2 of the report, noting the demand in statutory services had been a constant refrain over years, and  ...  view the full minutes text for item 7

A report providing an update, as at 30^th June 2025 of the Council’s 2025/26 forecast revenue budget position, the financial forecast of the Dedicated Schools Grant and the Housing Revenue Account, alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30.

The Cabinet considered a report of the Director of Finance that provided members  with an update, as at 30^th June 2025 (end of Quarter 1 2025/26) of the Council’s 2025/26 forecast revenue budget position, the financial forecast of the Dedicated Schools Grant and the Housing Revenue Account (at Annex 1, to the submitted report) alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30 (at Annex 2, to the submitted report).

In terms of the Revenue Position, the forecast overspend position for 2025/26 at the end of Quarter 1 was estimated to be £20.822m without any mitigation to bring expenditure down. As this financial monitoring report reflected the financial position at the end of Quarter 1, it could be regarded as an early warning of the potential year end position if no further action was taken to reduce net expenditure. As with previous early period monitoring reports, a cautious approach is generally taken when preparing forecasts. In particular, assumptions were made that vacant positions will be filled successfully, which as the year progresses did not always transpire. The management actions initiated in 2024/25 across all service areas had continued into 2025/26 with further mitigations to reduce the in-year pressure identified. Details were included in Annex 1 tot eh submitted report. These mitigations had been, or were in the process of being, implemented and it was anticipated that by the financial year end, the current outturn deficit position should have reduced.

Information on the forecast year end position of the Dedicated Schools Grant (DSG), and Housing Revenue Account (HRA) was also outlined in the submitted report.

Regarding the Capital Position, the submitted 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 £116.579m, at the close of Quarter 1. The actual expenditure to 30^th June 2025 was £10.553m (9.05% of the forecast outturn).

Options/Alternatives:

a.    To consider the forecast revenue and capital positions presented in the report including proposed changes.

b.    To propose alternative forecasts

The Preferred Option was Option a.

Resolved:

That the Cabinet:

1.    Notes the contents of the report.

2.    Notes the forecast revenue position, at the end of Quarter 1 202526, at £20.822m with mitigations in place to reduce expenditure as detailed at Annex 1, of the submitted report.

3.    Notes the forecast positions for the Dedicated Schools Grant and Housing Revenue Account.

4.    Approves the revised Capital Programme for 2025/26, including the proposed virements and the forecast for the financial years to 2029/30 as at the end of Quarter 1 as outlined in Annex 2 of the submitted report.