Purpose

Quarterly report

Decision

The report set out the forecast Revenue and Capital outturn position for Buckinghamshire Council for the financial year 2025/26 as at Quarter 2. Overall, the forecast revenue outturn was a balanced position. The Council continued to experience significant financial pressures from increases in demand and complexity of need in the key services of Adult Social Care, Children’s Social Care, Temporary Accommodation, Home to School Transport and High Needs budgets within the Dedicated Schools Grant (DSG). The forecast revenue outturn position at Quarter 2 within Portfolios was an adverse variance of £2.1m (0.4% of Portfolio budgets), compared with £5.5m reported in Q1. This improvement was due to the success of strong management action and political oversight with particular focus on challenge in high-risk areas.

The pressures in the forecast were in Children’s Social Care (£2.8m), Parking income (£0.8m), Home to School Transport (£1.1m) and Temporary Accommodation (£0.8m), offset by £0.6m underspend from vacancies in Parking staffing budgets, £0.7m additional planning income and £0.8m managed underspend from vacancies in Resources and Health and Wellbeing. A balanced position overall was due to a favourable variance in Corporate and Funding budgets.

The Dedicated Schools Grant budget has been set with a deficit of £22.9m. Currently the forecast position was within budget, however there was continued high demand for EHC Needs Assessments and a range of measures were being considered to tackle the delays in waiting times. There was a risk of increased demand impacting adversely on the financial position in the second half of the year. The balance on the DSG deficit reserve at the beginning of the year was £24.5m with a forecast closing balance of £47.4m.

The forecast position on capital budgets was £173.7m, which matched the current budget after reprofiling to reflect an updated and prudent view on the delivery of projects. The budget included an approved savings programme of £115.6m over 3 years, with £76.9m to be delivered in 2025/26. Delivery of savings for 2025/26 was currently forecast at 0.9% above target with a total £0.7m of savings above budget. Actions would continue to be required to closely manage the in-year financial position.

RESOLVED that the report be noted.