Issue - meetings

Report from the Executive Director of Corporate Services.

Recommendations:

That Cabinet:

1.    Note the current General Fund Revenue Budget forecast overspend of £3.4m.

2.    Note the projected overspend and that whilst the Council aims to manage this pressure, should that not be possible use of reserves will be required to  ...  view the full agenda text for item 103

Consideration was given to the report which set out the financial position as at the end of November 2025 and forecast for the remainder of the financial year, based on actual costs and income for the first eight months of 2025/26. Financial performance was a key element within the assessment  ...  view the full minutes text for item 103

Report from the Executive Director of Corporate Services.

Recommendations:

That Cabinet:

1.    Note the current General Fund Revenue Budget forecast overspend of £3.4m.

2.    Note the projected overspend and that whilst the Council aims to manage this pressure, should that not be possible use of reserves will be required to balance the 2025/26 financial position.

3.    Note the updated position of the Capital Programme.

4.    Approve the capital budget variations as detailed in section 2.17 of the report.

At the Chair’s invitation Councillor Alam OBE, the Cabinet Member for Finance and Community Safety, introduced the report, which presented the Council’s financial position at the end of November 2025 and the forecast for the remainder of the financial year, based on actual costs and income for the first eight months.

As of November 2025, the forecast overspend stood at £3.4m, comprising of an £8.7m direct overspend offset by a £5.3m underspend in central services. The overspend was largely driven by placement pressures in Children’s Services, rising costs of adult social care packages, and backdated payments for Older People and Physical and Sensory Disabilities. Market price increases above inflation also contributed to budget pressures. These challenges were consistent with those faced by councils across the UK.

The Council continued to face significant pressures in funding social care and responding to rising demand. Traded services continued to perform well. The forecast position was being closely monitored, and it was noted that, even with mitigation, reserves might be required to achieve a balanced outturn for 2025/26. The financial impact would be reflected in future monitoring reports to Cabinet.

The Service Director of Financial Services, Rob Mahon explained that this time of year could be challenging due to scrutiny presentations. It was noted that this report related specifically to financial monitoring, and that issues concerning the budget and the Medium-Term Financial Strategy (MTFS) would be addressed in the next presentation.

The Chair invited members of OSMB to raise questions and queries.

A question was raised by Councillor Allen regarding CYPS placements in relation to paragraphs 2.7 and 2.9.2 of the report. Paragraph 2.7 noted a reduction of 120 placements following the review, while paragraph 2.9.2 reported a £5.7m overspend on children in care placements, mainly due to increased use of external residential children’s homes. Clarification was sought on whether the recent overspend formed part of the cumulative reduction identified in the review, or whether it occurred after the review. A further question asked whether this trend was likely to continue.

The Service Director of Financial Services explained that the savings delivery assessment reflected the long?standing work to review CYPS placements. The original savings were driven by reducing the number of children in care and improving the placement mix, including reducing external residential placements and increasing both in?house foster carers and kinship care options.

The review had resulted in a reduction of 120 placements over the period, as referenced in the report. However, the CYPS placement position remained fluid and subject to monthly fluctuation. A spike in looked?after children numbers occurred over the summer but had since reduced.

It was noted that ongoing challenges remained, particularly the continued reliance on external residential placements. Progress on developing in?house residential provision was expected to help reduce external placements over time. Work also continued to strengthen in?house fostering and kinship care to reduce demand for high?cost external placements.

It was confirmed that, based on the assessment, the CYPS savings set out  ...  view the full minutes text for item 86