Purpose

Budget Monitoring 2025/26 – Quarter 3 Forecast Outturn

Decision

 DECISION;

1. Noted the Council’s quarter 3 revenue and capital forecasts as of 31 December 2025.
2. APPROVED in principle, increase in funding substitutions from quarter 2, including NCIL, CIL and s106, subject to the appropriate governance process (£7m).
3. Noted the significant progress made against the 2025/26 savings targets of £30.2m as of 31 December 2025.
4. Noted the quarter 3 General Fund forecast net overspend of £18.6m will be funded from the risk reserve.
5. APPROVED, subject to final outturn, the General Fund capital net position comprising net rephasing of (£2.7m) and net overspends of £2.6m, resulting in an overall variance of (£0.1m) against the revised budget as per table 6.
6. APPROVED, subject to final outturn, the Housing Revenue Account (HRA) capital net position comprising net rephasing of (£16.7m) and net overspends of £1.8m, resulting in an overall variance of (£14.9m) against the revised budget as per table 7.

REASONS FOR THE DECISIONS

•         The regular, timely and accurate reporting of Revenue and Capital Budget Monitoring and progress against savings targets through the year is a key financial control. It makes visible variations to budget to inform decision making and enable the council to take timely mitigating actions.

•         It is important that issues driving variations to budget are understood and addressed so that the council remains both within the approved budget envelope and on track to delivering the plans Council budgeted for.

ALTERNATIVE OPTIONS

•         The council could choose to monitor its budgetary performance against an alternative time frame, but it is considered that the reporting schedule provides the appropriate balance to allow strategic oversight of the budget by Members and to manage the council’s exposure to financial risk. More frequent monitoring is undertaken by officers and considered by individual service directors and the council’s CMT including approval of management action.

Action by:

CORPORATE DIRECTOR FOR RESOURCES (R. ENNIS)