Purpose

Proposed decision –

Cabinet is asked to:

(a)  NOTE the revenue and capital outturn position for 2025-26 detailed in the report, and accompanying appendices

(b)  AGREE roll forwards into 2026-27 in line with existing criteria (per Appendix)

(c)  AGREE the drawing down from reserves to fund the 2025-26 overspend

(d)  AGREE the capital slippage / re-phasing from 2025-26 will be added to the 2026-27 and later years’ capital budgets (per the report)

(e)  NOTE the review of the capital programme

(f)   AGREE the proposed capital cash limit changes (per Appendix)

(g)  AGREE the changes made as a result of a reserves review

Reason for the decision

The capital and revenue outturn position for the Council needs to be noted by Cabinet.  The rolling forward of funds into 2026-27, the capital budget changes and the reserves drawdowns and review needs to be agreed by Cabinet.

Background

The report on the Council’s financial position as at the end of 2025-26 will be reported to Cabinet on 25 June 2026. The report provides detail of our capital and revenue outturn positions and how the revenue overspend is funded from reserves, which needs to be approved by Cabinet.

Cabinet is also asked to agree revenue budget roll forwards, capital re-phasing, capital programme cash limit changes and reserves realignment following review.

Options (other options considered but discarded)

N/A

How the proposed decision supports the Council’s Strategic Statement

The Council’s strategic statement, Reforming Kent 2025-28, recognises the significant financial and demand pressures the Council faces, balancing the need to manage spending, deliver savings and generate income, whilst delivering positive outcomes for Kent residents, businesses and local communities.

The Council’s strategic statement acknowledges the significance of adults social care and SEND on the wider KCC budget position and therefore the need for the financial position to presented to Cabinet for consideration on a regular basis. The forecast outturn report for 2025-26 provides the detail of the financial position and the relevant information on the delivery of savings, reserves position and Treasury Management.

Decision

The Cabinet agree to:

a)    NOTE the revenue and capital outturn position for 2025-26 detailed in the report, and accompanying appendices

b)    AGREE that £0.8 million is rolled forward to fund existing criteria (per Appendix)

c)    AGREE that £0.3 million is rolled forward to fund member grants (per Appendix)

d)    AGREE the drawing down from General Fund reserves to fund the 2025-26 overspend

e)    AGREE the capital slippage / re-phasing from 2025-26 will be added to the 2026-27 and later years’ capital budgets (per the report)

f)     NOTE the review of the capital programme

g)    AGREE the proposed capital cash limit changes (per Appendix)

h)    AGREE the changes made as a result of a reserves review (per the report)