Issue - meetings

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

Councillor Thorpe introduced the report providing an update to Cabinet on the council's forecast Quarter 1 position across the General Fund revenue and capital budgets, Housing Revenue Account (HRA) and DSG (Dedicated Schools Grant). 

Councillor Rydeheard thanked Councillor Thorpe for attending Overview & Scrutiny Committee to go through this report with scrutiny members.

Councillor Birchmore highlighted the housing revenue account and confirmed her interest that some of the maintenance would be moved in house.

Decision(s)

Cabinet

·         Noted the 2026/27 forecast revenue Quarter 1 position of a £5.691m overspend (2.26%) against a net budget of £252.135m.

·         Noted the forecast reduction in General Fund and Earmarked Reserves of £12.047m (27.31%) and forecast closing balance at 31 March 2027 of £32.059m.

·         Noted the total forecast delivery of savings in 2026/27 of £18.534m (88.85%) against a target of £20.860m, including unachieved savings carried forward from 2025/26. This results in a forecast shortfall of £2.326m (11.15%).

·         Noted a net increase of £22.228m to the 2026/27 Capital Programme, comprising of £17.336m of slippage from 2025/26 and £7.311m of additional schemes in 2026/27, offset by £2.419m rephased into 2027/28. 

·         Approved and recommend to Council the in-year capital programme addition requiring £0.350m of additional prudential borrowing. 

·         Approved and recommend to Council an additional £0.210m of prudential borrowing within the Housing Revenue Account Capital Programme for 2026/27.

·         Noted the 2026/27 forecast Quarter 1 position for the Collection Fund.

·         Note the 2026/27 forecast Quarter 1 position for the Housing Revenue Account (HRA).

·         Noted the 2026/27 forecast Quarter 1 position for the Dedicated Schools Grant (DSG).

·         Noted the Quarter 1 Prudential Indicator position

Reasons for decision(s)

To note the forecast Quarter 1 finance position for 2026/27.

Alternative options considered and rejected

N/A

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

The Committee considered the Quarter 1 Finance Monitoring Report and accompanying appendix. Councillor Thorpe Deputy Leader and Cabinet Member for Finance and Corporate Services, presented an overview of the report, explaining that it outlined the Council's financial position at the end of Quarter 1, performance against budget assumptions, and the forecast outturn position. Members were advised that the report represented an early indication of financial performance and that forecasts would continue to be refined throughout the year.

Discussion took place regarding the Dedicated Schools Grant (DSG) deficit and the Government's SEND reform programme. Members heard that significant financial pressures continued to arise from independent and out-of-borough SEND placements, with work ongoing to increase local provision and reduce reliance on higher-cost placements.

Councillor Birchmore sought clarification on the Council's plans to increase SEND provision within mainstream schools and whether academies would be expected to support this approach. In response, it was explained that additional funding was being used to build capacity across schools, enabling them to accommodate a wider range of needs and support more pupils locally.

Further discussion focused on the increasing demand for SEND support and the associated costs. Members were advised that the Council's strategy aimed to provide appropriate provision across the full spectrum of need whilst reducing expenditure on expensive external placements. It was noted that improved diagnostics, earlier intervention and increased local capacity would contribute to a more sustainable model over time.

In response to a supplementary question regarding anticipated savings and the location of new SEND provision, Members were informed that a new 60-place provision was intended to reduce out-of-borough placements and would deliver significant savings. Further details would be provided outside the meeting.

Members also considered expenditure relating to children's residential placements. Councillor Rahimov asked whether the Council was exploring the development of its own residential provision. The Committee heard that two projects were currently being progressed, including collaborative work across Greater Manchester, although not all children would be suited to internally provided accommodation due to the complexity of some cases. Officers advised that establishing residential provision required significant lead-in time, including Ofsted registration, but remained a key element of the Council's strategy to reduce placement costs and improve outcomes.

The Committee noted continuing financial pressures within children's services, including fostering and residential care costs. Members were informed that whilst some placement costs were beginning to stabilise, market conditions remained challenging.

Councillor Birchmore raised concerns regarding capital expenditure at Ramsbottom Pool, particularly in light of future proposals affecting the facility. Questions were also asked regarding project delays, additional costs associated with facilities within the Radcliffe Hub development, and whether the Council would benefit financially from commercial arrangements linked to those facilities.

Officers advised that project costs had been updated to reflect revised assumptions and changing market conditions. Whilst some costs were higher than originally expected, a number of these were one-off costs which would not impact long-term revenue budgets. Reference was also made to revisions within the Medium-Term Financial Strategy.

The Committee discussed vacancy  ...  view the full minutes text for item 125