Purpose

To provide an update on the Quarter 1 forecast
for the 2025/26 County Council’s Revenue and Capital
Budgets

Decision

 
Cllr Colin Hay
provided an update on Quarter 1 end of year forecast for the
2025/26 County Council’s Revenue and Capital Budgets. He
reported on the Council’s performance and risk during Quarter
1 2025/26.
 
Having considered
all of the information, Cabinet noted the report and

RESOLVED to:
 
1. Note the forecast
revenue year end position, as at Quarter 1, for the 2025/26
financial year, is an overspend of £224k.

2. Approve the
£56.656 million forecast use of reserves. The £56.656
million includes £44.991 million in respect of Dedicated
Schools Grant, as well as a net £11.665 million in respect of
Useable Revenue Reserves.

3.Approve a drawing
of £300k from the Risk & Investment Reserve to fund
concept design and policy development in respect of 20 mph speed
limits and road traffic speed reduction measures, as set out in
paragraph 28. This is included in the Useable Revenue Reserve
figure shown in recommendation 2.

4. Approve the
transfer of £1.827 million to the Business Rates Retention
Reserve to mitigate the potential impact of the Fair Funding Review
as set out in paragraph 37. This is included in the Useable Revenue
Reserve figures shown in recommendation 2.

5.Note the forecast
delivery of £24.702 million savings against a 2025/26 target
of £26.434 million, or 93.4% as detailed in section
B.

6.Note the Quarter 1
capital expenditure forecast outturn position of £173.989
million, against a reprofiled budget of £174.038 million, as
illustrated in section C.

7. In respect of the
M5 Junction 10 Improvement Scheme, as set out in paragraphs 59 - 63
and Annex 1:

a. Subject to
receipt of the funding identified in Annex 1 and negotiations with
Homes England, approve an increase of £110 million to the
Capital Programme.

b. Earmark the use
of up to £2m from the Gloucestershire Infrastructure
Investment Fund (GIIF) funding pot, control of which transferred to
GCC from the LEP.

c.Delegate authority to the Chief Executive, in consultation
with the Leader, Cabinet Member for Business, Economic Development,
Planning and Infrastructure, and Cabinet Member for Finance, Assets
& Transformation, to negotiate the resolution of the remaining
funding gap with Homes England and enter into any revised funding
agreement as necessary.

d. Note that
expenditure and funding drawdown will be conditional upon securing
a mutual agreement with Homes England to fully address the balance
of the scheme’s funding shortfall as outlined in
Recommendation 7a above.
8. Approve the
changes to capital programme of transfers, virements and funding
changes, as detailed in paragraphs 64 - 66.

9. Note the
Prudential Indicators as explained in section D.

10. Note this report
of the Council’s performance and risks. To do this, the
following are provided:
•Council
Strategy updates
•Overview of
Performance
•Performance
Scorecard
•Risk
Scorecard