Purpose

To note the report and the issues raised on this.

Decision

The Cabinet:

1. 1. Reviewed the report including the level of general and earmarked reserves and issues raised within and note that Leadership Team with Cabinet Members will continue to closely monitor and manage the Medium Term Financial Strategy.
2. 2. Approved £8,592,000 of Capital Programme slippage related to 2025/26 being added to the Approved Budget in 2026/27 as outlined at APPENDIX C.
3. 3. Delegated responsibility to the Cabinet Member for Finance and Commissioning and the Director Finance, Environment and Community to make updates to Prudential Indicators based on more up to date information as the accounts are finalised in advance of approval by Council. That Cabinet, subject to review by Audit Committee, recommends to Council:
4. 4. Approved the actual 2025/26 Prudential Indicators.

Reasons for the decision

The Medium Term Financial Strategy originally projected general reserves at 31 March 2026 would be £5,803,301. General reserves were £5,263,564, a decrease of (£539,737) related to:

• The originally projected general reserves did not take account of the difference between the budgeted and actual use in 2024/25 of (£56,363).

• The actual use of general reserves in 2025/26 principally to fund Cabinet priorities of (£483,374) compared to the Original Budget of £0.

Leisure centres were £282,754 higher than the Budget principally due to lower  income. The budget performance will need to be kept under review given the level of financial risk related to leisure centres.

At the end of 2025/26, there are no significant financial risks that need to be  highlighted to the Council as shareholder in relation to LWMTS financial performance.

The Capital Programme was (£8,511,445) lower than the Approved Budget on the cinema development (£3,763,000), social housing (£1,331,589) and food waste collections (£1,281,672). It is recommended that this budget slippage is carried forward to 2026/27 when spend is planned to take place.

Income from Capital Receipts was lower than the Approved Budget by £2,078.

Alternative options considered

These are considered as part of the ongoing development of the Strategic Plan and the Medium Term Financial Strategy