Purpose

This reports to the Mayor and Cabinet the financial forecasts for 2026/27 as at the end of Quarter One (June 2026), covering the Council’s finances, including the General Fund, Housing Revenue Account, the Dedicated Schools Grant, Capital Programme, Savings Delivery and Reserves position.

Decision

For the reasons set out in the report and its appendices, Cabinet RESOLVED to Agree to:

i)  Note the General Fund Revenue forecast overspend of £6.168m for Quarter 1 as set out in this report and Appendix 1, and the development of Directorate level Financial Recovery plans to address overspending areas to be included in the Quarter 2 Budget monitoring.

ii)  Note the progress on MTFS Savings delivery for Quarter 1 showing £13.638m (22%) of savings delivered, £33.155m (53%) savings forecast on track for delivery and £15.957m (25%) savings forecast not yet in delivery or forecast for slippage to 2027/28, as set out in Appendix 2. Delivery of savings will, going forward, be challenged and monitored by an internal Financial Management Board to be stood up to ensure full delivery of savings and adherence to the Medium Term Financial Plan.

iii)  Note the forecast balanced outturn on both the Dedicated Schools Grant (£283.121m gross budget) and Housing Revenue Account (£136.152m gross budget) for Quarter 1 as set out in Appendix 3.

iv)  Note the Capital forecast position for Quarter 1 as set out in Appendix 4.

v)  Agree the amendments to the budget profile of the Capital Programme as set out in Appendix 4.

vi)  Note the Council’s forecast Reserve position for Quarter 1 as set out in Appendix 5.

vii)  Agree the Quarter 1 Budget Changes Report and the outlined budget changes for Quarter 2 in Appendix 6.

viii)  Note the Corporate Performance Report for 2025/26 Outturn and 2026/27 Quarter 1 as set out in Appendix 7.

ix)  Note that the reported Performance Indicators in Appendix 7 reflect the KPI framework agreed for 2026/27 and that further amendments may be made following adoption of the Council Plan.

Alternatives Considered

None