Issue - meetings

Report of the Deputy Leader and Cabinet Member for Finance and Corporate Services is attached.

Councillor Thorpe, Deputy Leader and Cabinet Member for Finance and Corporate Services, presented an overview of the 2025/26 outturn position. He advised Members received an update on the Council's financial position, noting an improved forecast during the year, although budget pressures remained and continued careful financial management was required. Progress had been made in delivering planned savings and managing service demand, while work to support long-term financial sustainability continued. Members also noted that some capital programme expenditure had been reprofiled into future years to reflect revised delivery timescales for major projects.

In response to a question submitted in advance by Councillor Birchmore regarding the £462,000 variance in business rates income, officers explained that £242,000 related to a lower-than-anticipated contribution from the Greater Manchester Combined Authority through the 100% Business Rates Retention Scheme, with the remaining difference arising from a number of smaller variances. Members were advised that collection performance remained positive, with the Collection Fund reporting an in-year surplus of £493,000.

Responding to a question from Councillor Birchmore regarding the £1.372 million underspend within the Place Directorate, officers advised that this was not solely due to project delays. The variance reflected a combination of increased income from traded services, higher service income levels and savings arising from vacant posts.

Councillor Birchmore asked for clarification on the £1.61 million unachieved saving linked to the reintegration of Six Town Housing into the Council. Officers explained that this represented the remaining element of a wider £3 million savings target. Some savings had already been achieved through reviewing costs chargeable to the HRA, while work continued to identify wider integration efficiencies. The remaining saving had been carried forward into 2026/27 and would continue to be monitored through regular financial reporting.

During discussion, members considered opportunities for increasing Council income. Councillor Pilkington asked about the Council's approach to revenue generation, including planning fee increases. Councillor Thorpe stated that opportunities to commercialise Council assets and services were being explored, including the use of green spaces and events, but noted that there were limits to the level of income that could realistically be generated.

In response to a query from Councillor Rydeheard, it was confirmed that Heaton Park remained under the ownership of Manchester City Council, having been gifted to Manchester in perpetuity.

Councillor Martin asked about contingency plans should the Council need to make further use of reserves. Councillor Thorpe highlighted the structural financial challenges facing local government, particularly the increasing costs of Adult Social Care and the limitations of existing funding arrangements. Officers added that the Council maintained a Budget Stabilisation Reserve and was working to reduce reliance on reserves over the medium term.

Members discussed the wider issue of Adult Social Care funding and whether further support could be secured through joint lobbying with other local authorities. Concerns were raised regarding the sustainability of the current funding system and the burden placed on councils by increasing care demands. Officers advised that discussions continued with Greater Manchester partners, the Integrated Care Board and NHS organisations  ...  view the full minutes text for item 117

Report of the Deputy Leader and Cabinet Member for Finance and Corporate Services is attached.

The Deputy Leader and Cabinet Member for Finance and Corporate Services presented a report regarding the Council's final outturn position across the General Fund revenue and Capital budgets, Housing Revenue Account (HRA) and Dedicated Schools Grant (DSG). Councillor Thorpe reported that the General Fund outturn position was an overspend of £7.266m, which represented a favourable movement of £0.673m from the Quarter 3 forecast overspend. 68.19% of savings targets had been delivered, with the rest programmed in for next year. The Capital Programme had also seen slippage and would be reviewed and reprofiled with regards to delivery. It was noted that a drawdown of £7.266m from the budget stabilisation reserve has been required, and the reserve was no longer sufficient to support the forecast funding gap beyond 2027/28, though work continued on the budget review to identify savings and income generation.

In response to Members’ questions, it was noted that:

·       The next 12 months would be a critical time, and nothing was “off the table” in terms of financial savings..

·       Savings plans put in place months or even years ago were starting to take effect (e.g. in Childrens Services). These had taken a long time to embed but were now showing financial benefits.

·       The biggest contributor to the non-service specific overspend was the delayed housing integration which was being closely monitored.

·       Internal governance structures were much stronger, giving better oversight and tracking of savings delivery, an identifying slippage or delays much sooner.

·       Care in the Community costs were split with NHS, and work was underway with NHS partners to review arrangements.

·       Underspend in personal budgets were followed up to ensure residents were happy.

Decision:

Cabinet:

1.    Noted the 2025/26 revenue outturn position of a £7.266m overspend (3.04%) against a net budget of £238.987m;

2.    Noted the in-year reduction in General Fund and Earmarked Reserves of £19.509m (30.67%) and closing balance at 31 March 2026 of £44.106m;

3.    Noted the 2025/26 achievement of savings of £7.729m (68%) against a target of £11.334m;

4.    Noted the overall 2025/26 capital programme outturn position of £100.413m, (84%) compared to the overall 2025/26 capital programme budget of £119.614m. This results in a £19.201m variance, mainly driven by £17.336m of rephased schemes into 2026/27, alongside £0.993m from schemes not progressed and £0.872m of savings across housing projects;

5.    Approved the in-year capital slippage of £17.336m being initially transferred into 2026/27 to enable an in-year review of the deliverability of the capital programme to be undertaken and the programme re-profiled accordingly;

6.    Noted the 2025/26 outturn position for the Collection Fund;

7.    Noted the 2025/26 outturn position for the Housing Revenue Account (HRA); and

8.    Noted the 2025/26 outturn position for the Dedicated Schools Grant (DSG).

Reasons for the decision:

To note the final financial outturn position for 2025/26 subject to external audit.

Alternative options considered and rejected:

N/A