Purpose

To provide an integrated finance, performance and risk update against Our City: Our Plan priorities for 2026-2027 and budget 2027-2028 update.

Decision

That Cabinet noted:

1. That early indications are that there are some emerging cost pressures in 2026-2027 on the General Fund, mainly around increased demand and some inflationary pressures as detailed in the report.  Despite pressures being identified in some services, overall as a result of efficiencies within some corporate budgets we are currently projecting a balanced budget for 2026-2027. This would continue to be monitored, and an update would be provided in future reports to Councillors.
2. That the Housing Revenue Account (HRA) is forecast to be within budget for 2026-2027. Early indications suggest that the HRA may benefit from lower borrowing costs than budgeted for.   
3. That early indications are that good progress is being made against the Our Future Council Savings Targets for 2026-2027. These would be closely monitored, and an update provided in future reports to Councillors.
4. The progress and achievements delivered through Our Future Council programme since its launch in July 2024.
5. The update on the Housing Revenue Account (HRA) at Section 6 of the report regarding the HRA Business Plan.
6. That the Deputy Director of Finance (Deputy Section 151 Officer) has approved write-off of debts against the expected credit loss provision as detailed in Appendix 2 to the report.
7. That the Strategic Risk Register approved by Cabinet on 10 June 2026 and approved by Audit and Risk Committee on 22 June 2026 is detailed in Appendix 6 to the report.

That Cabinet approved:

1. The launch of Our Future Council (OFC) 2.0 (as outlined in section 5 of the report), establishing the next phase of the programme.
2. The refreshed OFC 2.0 approach and guiding principles as detailed in Appendix 3 to the report.
3. 21 virements totalling £5.8 million on the General Fund, for transfers within directorates, as detailed in Appendix 5 to the report.
4. The write-off of debts against the expected credit loss provision as detailed in Appendix 2 to the report.
5. The General Fund Budget 2026-2027 and medium term financial strategy (MTFS) risk register as detailed in Appendix 4 to the report.
6. The establishment of supplementary budgets within 2026-2027 that have no impact on the Council’s net revenue budgets as the expenditure is fully funded from grant or other external income source as detailed in Section 8 of the report.
7. The use of up to £5.5 million from the Enterprise Zone Business Rates Reserve towards delivering Gasholder scheme. as detailed in paragraph 9.6 of the report and establishment of associated supplementary budgets.