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