Agenda item

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.

5.    Delegate authority to the Service Director of Planning, Regeneration and Transport in consultation with the Service Director of Financial Services and Cabinet member for Transport, Jobs and the Local Economy, to approve the specific allocations of the Gainshare Feasibility Grant and any variations required through its delivery, as detailed in section 2.20.1 of the report. 

6.    Approve the Council being the recipient of Department for Education grant funding as part of the Strategic School Improvement Capital Budget (SSICB) and the Council take over responsibility for delivery of the Newman School project.

Consideration was given to the report which set out the financial position as at the end of December 2025 and forecast for the remainder of the financial year, based on actual costs and income for the first nine months of 2025/26. Financial performance was a key element within the assessment of the Council’s overall performance framework and was essential to achievement of the objectives within the Council’s policy agenda. To that end, this was the fifth financial monitoring report of a series of reports for the current financial year which would continue to be brought forward to Cabinet on a regular basis.

As of December 2025, the Council’s forecast outturn for 2025/26 was an overspend of £3.4m, and whilst there had been movements within services, this was consistent with the position reported in November financial monitoring. The forecast position was made up of a Directorate overspend of £9.2m, offset by a projected Central Service underspend of £5.8m.

The Directorate overspend of £9.2m was largely due to demand and market pressures in relation to Children’s residential placements and placement types, and the cost and complexity of care packages in Adult Social Care. Market prices were increasing at above inflation levels, placing further pressures on the Council’s Budget. These pressures were anticipated and a corporate provision of £5.4m was maintained within Central Services as part of the Budget and Council Tax Report 2025/26.

Central Services was forecasting an underspend of £5.8m, reflecting use of the £5.4m Social Care Contingency approved within the Council’s Budget and Council Tax Report 2025/26, the impact of the Local Government Pay Award and savings generated within the Council’s Treasury Management Strategy. The Local Government Pay Award was agreed at 3.2% at all pay bands up to senior officer. The impact of this was a cost of £2.3m above the budget allocated when setting the Council’s Budget. The Council had no control over the level of pay award agreed.

The report also provided details regarding the Department for Education’s (DfE) request for the Council to become the grant recipient for the Strategic School Improvement Capital Budget funding for Newman School. This was following the decision of the DfE to re-broker the existing Multi Academy Trust arrangements and bring in another Trust to run the School. In order to ensure that the Newman School project continued to be delivered and the key outcomes were still achieved, the Council proposed to accept this request. As part of becoming the grant recipient and to take into account the delays experienced through the approval process with the DfE, the Council recognised the increasing probability that costs would increase for the scheme; this included both works on the main site and those required at Dinnington. Therefore, the Council was seeking assurances that the in-principle funding arrangement from DfE remained in place for the main Whiston site with availability of the centrally held DfE contingency should this be required to mitigate against cost increases.

Resolved:

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.

5.    Delegate authority to the Service Director of Planning, Regeneration and Transport in consultation with the Service Director of Financial Services and Cabinet member for Transport, Jobs and the Local Economy, to approve the specific allocations of the Gainshare Feasibility Grant and any variations required through its delivery, as detailed in section 2.20.1 of the report.

6.    Approve the Council being the recipient of Department for Education grant funding as part of the Strategic School Improvement Capital Budget (SSICB) and the Council take over responsibility for delivery of the Newman School project.