Agenda item

This report sets out the financial forecast for the General Fund revenue budget, the Housing Revenue Account, the Dedicated Schools Grant and the Capital Programme, as at Quarter 1 2025-26.

Cabinet RESOLVED to

(1)       Note the overall financial position and the actions being taken to manage the issues arising, as detailed within the report.

(2)       Note the savings delivery tracker in Appendix A of the report.

(3)       Note the prudential indicators for treasury management in Appendix B of the report.

(4)       To approve the virements set out in section 9.18 of the report.

(5)       To note the debt written off as set out in section 9.22 of the report.

(6)       To approve an uplift to the Capital Programme Budget of £851k following the successful grant award of UK Shared Prosperity Funding as set out in section 12.2 of the report.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 4 August 25

In Councillor Mili Patel’s (Deputy Leader and Cabinet Member for Finance & Resources) absence, Councillor Muhammed Butt (as Leader of the Council) moved on to introduce a report from the Corporate Director Finance & Resources which set out the financial forecast for the General Fund revenue budget, the Housing Revenue Account, the Dedicated Schools Grant and the Capital Programme as at Quarter 1 2025-26.

In introducing the report, the Leader highlighted that despite the considerable efforts to maintain financial control, the operating environment and wider economic and social context faced by the Council remained challenging.  Whilst forecasting a breakeven position at Q1 against the £431.4m General Fund revenue budget it was pointed out this was not without significant risk, given the ongoing pressures faced, which remained particularly acute in relation to homelessness.  Whilst highlighting that the number of homelessness application had reduced during the previous year it was pointed out that demand remained high with the cost of temporary accommodation also continuing to increase.

Given the challenges identified, members were reminded of the measures introduced in response to protect services for residents. These included increasing the Housing Needs and Support budget by £14m, with support also continuing to be provided for the Council’s wholly owned housing company i4B in seeking to deliver affordable homes (including 15 new acquisitions planned for 2025-26) alongside the introduction of a new model of resident support, backed by £1m in recurring funding, designed to assist households in building long-term resilience.  In addition,£8.9m worth of agreed savings were also in the process of being delivered with 91% currently on track whilst, it was pointed out, the Council also continued to invest in its people and infrastructure working across departments to implement the Embrace Change programme, developed to transform how the Council was able to support residents and manage its finances.

Whilst supportive of the efforts being made, members also recognised the ongoing risks and challenges given the ongoing increase in the cost of social care packages and pressures in children’s placements, particularly in residential and secure settings with collection rates for debt and Council Tax and Business Rates (whilst improving) still falling short of pre-pandemic levels.

In considering the report, Cabinet noted the challenges identified in seeking to manage demand and address the pressures identified, with members committed to continue the positive work with Corporate Directors to ensure the monitoring and management of budgets in each service area and to take the difficult decisions required in order to safeguard the council’s reputation for financial sustainability.

Having noted the information provided Cabinet RESOLVED to:

(1)       Note the overall financial position and the actions being taken to manage the issues arising, as detailed within the report.

(2)       Note the savings delivery tracker in Appendix A of the report.

(3)       Note the prudential indicators for treasury management in Appendix B of the report.

(4)       Approve the virements set out in section 9.18 of the report.

(5)       Note the debt written off as set out in section 9.22 of the report.

(6)       Approve an uplift to the Capital Programme Budget of £851k following the successful grant award of UK Shared Prosperity Funding as set out in section 12.2 of the report.