Issue - meetings

Report from the Executive Director of Corporate Services.

Recommendations

That Cabinet:

1.    Note the current General Fund Revenue Budget forecast overspend of £5.9m.

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 July 2026 and forecast for the remainder of the financial year, based on actual costs and income for the first four months of 2026/27.

As of July 2026, the Council’s forecast outturn for  ...  view the full minutes text for item 44

Report from the Executive Director of Corporate Services.

Recommendations

That Cabinet:

1.    Note the current General Fund Revenue Budget forecast overspend of £5.9m.

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, the Cabinet Member for Finance and Community Safety reported that, as of July 2026, the forecast outturn position was an overspend of £5.9m, comprising Directorate overspends of £10.9m offset by a projected £5.0m underspend in Central Services.

The main pressures were within Social Care, driven by increasing demand, complexity of need and market costs, and within Regeneration and Environment, where the overspend had increased by £2.9m, due to Waste and Home-to-School Transport pressures. It was noted that wider economic conditions remained uncertain, with energy and fuel costs affected by conflict in the Middle East and inflation remaining at 24.6%. The Council was expected to implement mitigating actions and was anticipated to reduce the projected overspend during the financial year.

The Service Director, Financial Services, Rob Mahon advised that the key change in the financial monitoring position was an increase in the overspend within Regeneration and Environment Services, while the position within the Social Care Directorates had remained unchanged. The £2.9m increase in Regeneration and Environment was attributed to pressures in Home-to-School Transport and Waste Services. It was noted that a significant proportion of these pressures had been mitigated through Central Services, including additional benefits from the Treasury Management Strategy and lower-than-budgeted inflationary pressures on major contracts.

The Chair invited members of the Overview and Scrutiny Management Board (OSMB) to raise questions and queries. The Vice-Chair, Councillor Bacon raised concerns regarding the scale of forecast overspends across Children and Young People's Services, Adult Care, Housing and Public Health, and Regeneration and Environment, including whether the Council remained in control of its financial position. Clarification was sought on the recovery actions being implemented, accountability for delivering those actions, and the timescales for achieving a balanced budget position.

In response, the Service Director, Financial Services acknowledged that the forecast overspend remained a significant challenge. Social Care pressures were attributed to placement demand and market conditions. Actions to address the position included the in-house residential homes programme, the Children's Services step-down programme and Adult Social Care savings initiatives. It was also noted that Central Services savings, inflation contingencies, and treasury management benefits were helping to mitigate pressures while further recovery actions were being developed.

The Executive Director of Children and Young People's Services reported that Children’s Services continued to face significant placement pressures, particularly in residential provision. Progress was being made through the residential homes programme, recruitment activity, and placement reviews to ensure children were supported in the most appropriate settings. The forthcoming Families First programme was also expected to strengthen preventative support for families. It was noted that these measures were beginning to reduce the overspend, although improvement would take time to be fully realised.

The Vice-Chair raised concerns regarding the effectiveness of the waste collection strategy, including the reasons for the reliance on hire vehicles and whether delays in introducing greener replacement vehicles had contributed to the Regeneration and Environment overspend.

In response, the Chair noted that a further report would be presented on this  ...  view the full minutes text for item 35