Purpose

To report on quarter one Revenue & Capital Monitoring and to consider any specific recommendations on the application of resources in-year, including movements to and from reserves, as required by financial procedure rules.

Decision

RESOLVED -

1)    That it be noted that (i) the revenue outturn position at Quarter 1 2026/27 is a forecast overspend of £13.6m after the use of the strategic budget contingency reserve of £5.2m; and the actions being taken to reduce the overspend (see paragraphs 1.6 - 1.8) (Should an overspend remain, which is considered probable, there would be a requirement to balance the budget using reserves which in turn would need to be replenished) (ii) the scale of the potential overspend reported is not sustainable and that the Council faces significant challenges in dealing with these rising costs in social care within both Adults and Health and Children and Families directorates (iii) the Quarter 1 position on the Dedicated Schools Grant (DSG) is a forecast in-year deficit of £28.7m to take the cumulative deficit to £110.0m (The Council is assuming that Government will fund 90% of the historic deficit (subject to any changes as part of the upcoming Autumn Budget) in this financial year which is around c£72m and the remaining deficit will be carried forward into 2027/28 prior to the end of the Statutory Override on High Needs Block deficits) (iv) the Quarter 1 Housing Revenue Account (HRA) position is a projected underspend of £754k (Any underspends will be taken to HRA reserves at financial year end. The current forecast year-end reserves position is now £16.2m) and (v) the Quarter 1 forecast capital monitoring position for 2026/27 as set out in the accompanying slides (Appendix 1 slides 36-49 and Appendix 3) and the £24.8m General Fund re-profiling of spend into future years;

2)    That approval be given to (i) the reallocation of £1.92m of borrowing from the Information Technology Capital Plan for a replacement CCTV system to ensure the Council can continue to meet its public safety objectives (ii) the delegation of authority to the Executive Director of Public Health and Corporate Resources, in consultation with the Service Director for Finance, the Service Director for Legal, Governance and Commissioning and the Portfolio Holder for Strategic Finance and Local Government Efficiency to commence and award a contract for a replacement CCTV system and (iii) the delegation of authority to the Service Director Legal, Governance and Commissioning to agree and negotiate where appropriate , the terms of any contract and enter into all legal documents on behalf of the Council following the decision to award the replacement CCTV contract

3)    That approval be given to the reallocation of £2.785m existing budgets in the Capital Plan (2027-29) towards the Huddersfield Open Market scheme from Corporate Landlord (£0.9m), Highways (£0.8m) and Dewsbury Riverside (£1.1m);

4)    That the Quarter 1 treasury management prudential indicators (slides 50-63, Appendix 1 refer) be noted.