Purpose

To update on financial performance against budget for 2026/27 as at the end of Quarter 1 of the financial year

Decision

Cabinet considered a report of the Director of Corporate Services and Chief Finance Officer, which provided an update on the Council's forecast financial position for 2026/27 at the end of Quarter 1 (June 2026).

The Cabinet Member for Finance and Growth introduced the report.

The Interim Deputy Chief Finance Officer attended the meeting, presented the report, and responded to questions and comments from Cabinet Members.

The Senior Officer advised that the forecast 2026/27 revenue outturn position indicated a pressure of £3.878 million. The forecast 2026/27 capital outturn position was £144.823 million, reflecting in-year changes of £4.907 million and the rephasing of £76.123 million into future years.

The forecast Collection Fund balance position was a deficit of £1.633 million, including the Council's share of the deficit of £1.843 million. Cabinet was also updated on the Quarter 1 position in relation to the Property Growth Fund, as detailed in Section 5.8 of the report, and Treasury Management, as detailed in Section 5.9 and Appendix C.

Resolved:

1. That the 2026/27 forecast positions for Revenue, Capital, and the Collection Fund as at the end of June 2026, as detailed in section 5 of the report be noted;
2. That the significant overspend £4,528k in Children Services be noted; a separate report is being presented to 25th August 2026 Cabinet.
3. That it be noted that the other services that are forecasting an overspend, if the overspend has not reduced by the end of Quarter 2 separate reports would be brought to Cabinet and Corporate O&S;
4. That the Budget Pressure requests detailed in section 5.3.1 of the report be approved;
5. That the update on the Health and Social Care Pooled Budget detailed in section 5.4 of the report be noted;
6. That the net Capital budget changes of £4,907k, detailed in section 5.6.1 of the report be noted;
7. That the Capital re-phasing of £76,123k into future years detailed in section 5.6.2, and Appendix B (2) of the report be noted;
8. That the request to switch capital budgets within Corporate, and Economy & Place directorates as detailed in section 5.6.3 pf the report be approved;
9. That the Property Growth Fund update in section 5.8 of the report be noted;
10. That the Treasury Management update for Quarter 1 in section 5.9, and Appendix C to the report be noted.

Reason for decision:

Cabinet Members should be kept updated on the financial position of the authority, as effective budget management is critical to ensuring financial resources are spent in line with the budget and are targeted towards the Council’s priorities. This report focuses on the forecast 2026/27 financial position as at the end June 2026 (Q1).

Alternatives considered and rejected:

There was no alternative, as the Council financial reporting complies with CIPFA’s Financial Management Code and its standards to ensure management of financial resources in the short, medium and long term, management of financial resilience to meet unforeseen demands on services, and management of unexpected shocks within financial circumstances.