Agenda item

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 2026/27 was an overspend of £4.6m, made up of a Directorates overspend of £7.6m, offset by a projected Central Services underspend of £3.0m. The main pressures driving this forecast were within Social Care, largely due to market prices and the increasing number of people receiving support and care who had complex needs. Detailed explanations of the reasons for variances within each Directorate were provided in the report.

Following approval of the 2026/27 Budget, the global economic position had remained volatile. Economic market sentiment had been heavily influenced by the Middle East conflict leading to steepening energy costs impacting the wider economy and economic commentators anticipating a growing risk of inflation. These financial challenges were being regularly reviewed as part of the Council’s ongoing Medium Term Financial Planning. 

Paragraph 2.17 of the report detailed the Capital Programme Variations and provided updates on the Local Regeneration Fund and Dinnington project.

The report was considered by the Overview and Scrutiny Management Board who advised that the recommendations be supported.

Resolved:

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.