Issue - meetings

The report provides an update as at 31^st December 2025 (Quarter 3) 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) alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30 (at Annex 2).

Cabinet Member for Finance, Corporate Services and Sustainability to report.

The Cabinet considered a report of the Director of Finance that provided Members with an update as at 31^st December 2025 (end of Quarter 3 – 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 (detailed at Annex 1), alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30 (detailed at Annex 2).

In terms of the Council’s Revenue Position, the forecast adverse position for 2025/26 at the end of Quarter 3 was estimated to be £15.199m (£21.094m at the end of Quarter 2 – 30^th September 2025). The details within the revenue monitoring report for Quarter 3 followed on from the Quarter 2 report previously presented and highlights any significant areas of concern which may not just impact on the current year, but also when preparing future budgets. A forecast adverse position based on the Quarter 3 revenue controllable budget is £15.199m which is a favourable movement of £5.894m from the position previously reported.

The Council was exploring opportunities in conjunction with its external treasury advisors to look at our current policy on capitalising interest costs for assets under construction. This could generate a potential revenue adjustment to the Council which would reduce the forecast adverse variance for 2025/26. The outcome of this work would be reported to Cabinet, within the Month 10 revenue monitoring report, on 23^rd March 2026.

Since the last report was presented to this meeting, the implementation of the agreed enhanced controls has continued to have an impact on the forecast position resulting in the favourable movement between periods. It was expected that the position would continue to improve as these agreed controls are embedded further. It was important that the organisation continues this work on mitigating and reducing the forecast revenue variance by the end of the financial year, limiting any unbudgeted use of reserves and protecting its financial resilience.

Given, the in-year financial position of the Council, the level of reserves available and the budgetary gaps reported within the Council’s Medium Term Financial Strategy (MTFS), the recent publication of the Local Government Finance Settlement has 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 the 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 reserves 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 report. Information on the forecast year end position of the Dedicated Schools Grant (DSG), and Housing Revenue Account (HRA) were also outlined in the report.

In terms of the Council’s Capital Position, the report outlined the most up to date capital spending position for 2025/26 to 2029/30 for approved schemes. The  ...  view the full minutes text for item 8

The report provides Governance, Strategy & Resources Scrutiny Board with an update as at 31 December 2025 (Quarter 3) 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) alongside the financial position of the capital programme together with the revised capital programme 2025/26 to 2029/30 (at Annex 2).

The Cabinet Member for Finance and Corporate Resources made an introductory statement setting out the background and context including pressures faced in the current year and developing the budget for 2026/27.

The forecast adverse position for 2025/26 at the end of Quarter 3 was estimated to be £15.199m (£21.094m at the end of Quarter 2).

The details within the revenue monitoring report for Quarter 3 followed on from the Quarter 2 report previously presented and highlighted any significant areas of concern which may not just impact on the current year, but also when preparing future budgets. A forecast adverse position based on the Quarter 3 revenue controllable budget is £15.199m which is a favourable movement of £5.894m from the position previously reported. The Council is currently exploring opportunities in conjunction with its external treasury advisors to look at our current policy on capitalising interest costs for assets under construction. This could generate a potential revenue adjustment to the Council which would reduce the forecast adverse variance for 2025/26. The outcome of this work would be reported to Cabinet in the Month 10 revenue monitoring report.

Since the last report was presented to this meeting, the implementation of the agreed enhanced controls had continued to have an impact on the forecast position resulting in the favourable movement between periods. It was expected that the position will continue to improve as these agreed controls are embedded further. It was important that the organisation continued this work on mitigating and reducing the forecast revenue variance by the end of the financial year, limiting any unbudgeted use of reserves and protecting its financial resilience.

Given the in-year financial position of the Council, the level of reserves available and the budgetary gaps reported within the Council’s Medium Term Financial Strategy (MTFS), the recent publication of the Provisional 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 reserves is a positive movement in ensuring the organisations financial resilience over the medium term.

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

Members aske questions on the JR Clynes and Spindles Buildings overspends, querying why this wasn’t anticipated. It was noted that the majority of this spend was on the Spindles due to Business rates valuations.

Members also requested that the minutes of the delivery board be included in future agendas and it was noted that this would be looked at. Members also queried why the Capital Strategy had increased next year. It was noted that the primary reason for this was slippage with spending having been pushed back to next year, which was standard practice. It was also highlighted that due  ...  view the full minutes text for item 6