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That Cabinet note a forecast revenue budget
underspend of £29,000 at update 2.
 
That Cabinet note that this represents a
£1.323 million improvement since the initial financial
update, reversing a previously forecast overspend of £533,000
and restoring £761,000 of the Council’s budget
contingency.
 
That Cabinet note that the improvement is
primarily driven by changes in Social Care where the ability to
maximise the impact of grant funding to meet core expenditure has
benefited the forecast.
 
That Cabinet note the budgetary risks that are
inbuilt into this forecast, namely:
 
· Demand for high-cost services such as
Social Care and Additional Learning Needs remains volatile.
· Inflation continues to be higher than
anticipated.
· Only 90.4% of the £10.7m saving
targets are expected to be met, down from the previously forecast
92.1%.
· Debt recovery rates are declining,
especially in Council Tax and Social Care.
· The growing
 
That Cabinet note the projected increase in
the deficit on cumulative schools’ reserves, as detailed in
Appendix 4 of this report, amounting to £2,970,000, an
increase of £135,000 compared to the previous forecast.
School balances are expected to close the financial year at a
deficit of £7,061,000, with eighteen out of thirty-five
schools anticipated to have a deficit balance.
 
That Cabinet note that schools which are
budgeting to end the 2025/26 financial year in a deficit balance
are required to bring forward recovery plans by October half term
to ensure that the proposed actions to address their budget
shortfalls are instigated.
 
That Cabinet note the forecast Capital budget
expenditure for the year of £59.79 million, alongside
projected slippage of £8.14 million. No significant variances
are anticipated at the current time with a minor underspend of
£19k reported.