Purpose

• To provide an update to Q1 end of year forecast for the 2026/27 County Council’s Revenue and Capital Budgets.
• To report on the delivery of the Council Strategy during Quarter 1 2026/27, including the current performance and risk position

Decision

Cllr Colin Hay provided an update to the Quarter 1 end of year forecast for the 2026/27 County Council’s Revenue and Capital Budgets. He reported on the delivery of the Council Strategy during Quarter 1 2026/27, including the current performance and risk position. 

Having considered all of the information, Cabinet noted the report and  
 
RESOLVED to: 
 

1. Note the 2026/27 forecast revenue outturn forecast of a £2.415 million overspend. 
   
   
2. Note the current position in respect of the 2026/27 pay award, as set out in paragraph 26, and the planned budget virement to be actioned before quarter 2. 
   
   
3. Endorse the planned Financial Strategy to reduce the overspend, as set out in section B. 
   
   
4. Note in section C the forecast delivery of £29.449 million of savings against a target of £37.169 million for 2026/27, with £7.720 million currently reported at risk. 
   
   
5. Approve the £78.720 million forecast use of reserves, as set out in section D. This includes £68.447 million in respect of Dedicated Schools Grant, as well as a net £10.272 million in respect of Useable Revenue Reserves. If approved, the reserve budgets will be updated to £78.720 million ahead of quarter 2. 
   
   
6. As set out in section E: 
   
   

a. Approve the £39.803 million reprofiling of the capital budget; as set out in paragraphs 57 - 69 

b. Note the quarter 1 capital expenditure forecast outturn position of £185.377 million; as set out in paragraph 70 

c. Approve the proposed changes to the capital programme totalling £1.182 million; as set out in paragraph 73. 

1. Note the Prudential Indicators as explained in section F. 
   
   
2. Note this report of the delivery of the Council Strategy action plan and the current performance and risk position. To do this, the following are provided: 

• Financial Overview 

• Overview of Performance 

• Delivery of Council Strategy 

• Performance Scorecard 

• Risk Scorecard