Issue - meetings

Report from the Executive Director of Corporate Services?.

Recommendations:

That Cabinet:

1. Note the current General Fund Revenue Budget forecast overspend of £4.6m.

2. Note the updated position of the Capital Programme.

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

Consideration was given to the report which set out the financial position as at the end of May 2026 and forecast for the remainder of the financial year, based on actual costs and income for the first two months of 2026/27.

As of May 2026, the Council’s forecast outturn for  ...  view the full minutes text for item 27

Report from the Executive Director of Corporate Services?.

Recommendations:

That Cabinet:

1. Note the current General Fund Revenue Budget forecast overspend of £4.6m.

2. Note the updated position of the Capital Programme.

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

At the Chair’s invitation Councillor Alam OBE, Cabinet Member for Finance and Community Safety, introduced the report, noting that the forecast for the remainder of the financial year was based on actual income and expenditure for the first two months. As at May, the Council was forecasting an overspend of £4.6m, comprising directorate overspends of £7.6m partially offset by projected underspends within central services of £3.0m.

It was reported that the principal budget pressures remained within social care services, driven by increased market costs and a growing number of people requiring support with complex needs. The report also provided detailed explanations of vacancies across each directorate.

Members were advised that the global economic environment had remained volatile since the budget was approved, with market sentiment affected by conflict in the Middle East and ongoing energy cost pressures. It was noted that these factors carried inflationary risks and continued to be monitored through the Council’s medium-term financial planning process.

Councillor Yasseen welcomed the report’s transparency, particularly the recognition of uncertainties within directorate forecasts. Appreciation was expressed for the clear explanation of assumptions relating to areas such as home-to-school transport, which helped provide a better understanding of the financial risks and pressures facing the Council.

In response to a question from Councillor McKiernan, the Service Director, Financial Services clarified that the table set out the savings formally approved by Cabinet and Council for delivery during 2026/27. It was explained that the middle column showed the savings already secured alongside those still to be delivered during the remainder of the financial year. In relation to CYPS, it was confirmed that all approved savings had already been achieved and there were no outstanding savings proposals requiring delivery. However, it was emphasised that this did not remove the need for the directorate to continue managing expenditure within its overall budget allocation throughout the year.

Resolved: That the Overview and Scrutiny Management Board supported the recommendations that Cabinet:

1. Note the current General Fund Revenue Budget forecast overspend of £4.6m.
2. Note the updated position of the Capital Programme.
3. Approve the capital budget variations as detailed in section 2.17 of the report.