Issue - meetings

Report from the Executive Director of Corporate Services.

Recommendations

That Cabinet:

1.    Note the update on the revenue budget financial outturn 2025/26.

2.    Note the Council’s progress on the delivery of the Local Council Tax Support Top Up payment scheme.

3.    Note the update to the Household Support Fund for  ...  view the full agenda text for item 8

Consideration was given to the report which provided an update to Cabinet on a number of financial matters. The report was provided as an interim update for Cabinet on the Council’s financial outturn 2025/26, in advance of the more detailed Financial Outturn 2025/26 report to be submitted to Cabinet in  ...  view the full minutes text for item 8

Report from the Executive Director of Corporate Services.

Recommendations

That Cabinet:

1.    Note the update on the revenue budget financial outturn 2025/26.

2.    Note the Council’s progress on the delivery of the Local Council Tax Support Top Up payment scheme.

3.    Note the update to the Household Support Fund for 2025-26.

4.    Approve the capital budget variations as detailed in section 2.4 of the report.

At the Chair’s invitation Councillor Alam OBE, Cabinet Member for Finance and Community Safety introduced the report which provided Cabinet with an update on financial matters. It was presented as an interim update on the Council’s 2025-26 financial outturn, ahead of a more detailed report scheduled for July 2026.

The Council’s projected position improved from a £3.4 million overspend reported in December to £0.3 million. This £3.1 million improvement had previously been reported to Cabinet in February. Headline details of these improvements were included in the report. The directorate forecasts indicated a positive trajectory for the Council’s finances. Strong financial management was noted as essential in addressing future budget pressures and external uncertainties.

The improved position meant that reserves remained stronger than originally projected when setting the budget, supporting the Council’s overall financial standing during a period of economic uncertainty. Spending in line with the approved budget remained critical. Continued scrutiny of income and expenditure across all services, alongside robust budget monitoring, was identified as a priority to ensure delivery of annual and medium-term financial plans while maintaining financial resilience.

The Service Director, Financial Services, Rob Mahon noted the position was identified in the 2026-27 budget papers as under financial monitoring, with ongoing work with directors to reduce the overspend and align it with budget.

The December overspend was less than 1% of the Council’s net revenue budget and not considered significant. Actions had further reduced it, strengthening the financial position. The Council was entering 2026-27 in a more robust position, as reflected in the approved budget and council tax report, though some underlying outturn challenges remain and would require further discussion. A detailed outturn report would be presented to Cabinet in July, and potentially to Scrutiny, providing early analysis of revenue and capital positions while year-end processes were finalised.

The Chair invited questions from OSMB, with Councillor Yasseen welcoming the reduced overspend and noting it as a significant improvement. Support for crisis measures in the budget was welcomed, including free school meal vouchers (c.141,000 rising to 142,000), £413,000 for energy support, household fuel assistance, £90,000 for care leavers, and council tax subsidies. Clarification was sought on continuation of this support into 2026.

It was confirmed that the 2025–26 Household Support Fund figures reflected final outturn delivery, including total vouchers issued, value of energy support, and households supported.

Councillor Yasseen commended the scale of delivery and improving financial trajectory but raised concern over £6.2m of service pressures, particularly in Children’s Services, and sought assurance on further mitigating actions.

It was reiterated that there was no single solution to CYPS placement pressures. Actions had included reviewing placements and delivering prior savings, improving the position. The 2026–27 budget included a £2.8m uplift and £2m for inflation, though pressures were expected to exceed assumptions. Grant funding had provided additional support, but completion of savings plans remained critical, particularly the in-house residential programme (four placements across two properties in 2026–27) to reduce reliance on high-cost external provision.

Forecasting remained challenging due to demand volatility,  ...  view the full minutes text for item 6