Purpose

To note the Council’s overall financial position for the year, including key variances, reserve use, and ongoing medium-term financial pressures.

Decision

RESOLVED that Cabinet:-

1. Note the final position for the Council’s General Fund which shows an overspend for the year of £13.1M (after adjusting for statutory balances, scheme slippage and known expenditure commitments in 2026/27 – see Appendix 1), an improvement of £1.3M on the position reported at Q3.
2. Approve the release of £13.1M of reserves specifically earmarked to mitigate the 25/26 cost pressures to deliver the financial plan in line with the MTFS.
3. Note the current High Needs (SEND) deficit of £19.3M, an increase of £5.4M in 2025/26. This deficit is currently subject to a statutory override by Government to 2027/28. Government are currently consulting on reforms to the SEND system which includes a proposal to fund 90% of DSG deficits recorded as of 31st March 2026 (equivalent £3.7M of the deficit prior to the safety net value payments).
4. Note the final position on the Housing Revenue Account, which shows net surplus income for the year of £0.9M.
5. Approve the write off of historic bad debts totalling £0.764M as detailed in Section 4.
6. Note that the latest MTFS update (reported in February 2026) acknowledged forecasts material funding gaps over the planning period through to 28/29. To address this the Council has agreed a 4-point savings plan. Delivery of this plan and ensuring that all services are delivered agreed budgets is critical to the Council’s future financial sustainability.