Agenda item

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 questioned why the council couldn’t control these things. Members were advised that the transformation programme, particularly around changing services, the use of technology and grant monies would help alleviate some of the challenges, and that there were some success stories already in terms of savings. It was noted that the market in Children’s services was being exploited and that Oldham opening several children’s homes would help mitigate this problem. The work with Newtons around efficiencies and best practice was also highlighted. It was highlighted that there were challenging structural factors and that the new government recognised this need. It was noted that there was lots of work going on to find and keep variance reductions and that this was a day-by-day battle. Fair funding would help with this situation. It was highlighted that temporary accommodation was on budget, having previously been an enormous issue for the authority.

Members queried whether additional purchase of bins in the environment service meant that the savings from Don’t Trash Oldham had been wiped out. It was advised that this was not the case and that the purchase of bins referred to domestic waste, and that some grants would help to alleviate the overspend.

Members requested that members could receive the value of each mitigating action along with the officer responsibility for delivering those savings. It was advised that this information would go through the steering group and that work was being done on mitigations. It was noted that mitigations were around funding streams and reallocations, and that any service changes would go through Cabinet.

Members noted the success on bins.

Members queried the four applications for reserves usage and asked why they weren’t funded in the first place. It was advised that the reserves were crucial and that the new reserves policy has been kept. It was further noted that fluctuations had been funded historically from reserves. It was highlighted that some of the revenue grants were, in effect, grants not spent and offset.

Members queried why the surprise repairs and managements were an adverse variance. It was noted that the repairs were based on assets not disposed of yet, including delayed sales and one offs, noting a security issue for example. It was also noted that there were market issues with selling at price, and this was reviewed regularly, noting the longer process to sell. Members queried when buildings are sold, where does the money go and it was advised that funds go into the capital receipts, not capital.

Members asked whether the report could be changed to include a list of unactioned savings and a request for monthly delivery board meetings.

Members voted on whether to endorse the report and thank officers for their time in preparing it. Seven members voted in favour, one member voted against and one member abstained.

RESOLVED: That the report be noted and endorsed with thanks to officers.