Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: July 23, 2025

Purpose:

Content: For the reasons set out in the report, the Executive Mayor and Cabinet AGREED:   2.1      to note the General Fund revenue budget provisional overspend of £29.2m after the one-off benefit of £3.7m transformation earmarked reserves not allocated to transformation/improvement projects. This reduces to a £0.7m underspend after the forecast utilisation of £51m capitalisation directions (including £13m not used in 2023-24), utilisation of the £5.0m risk contingency budget and utilisation of £13.0m corporate earmarked reserves and £3.9m business risk earmarked reserve.   2.2       to note that the provisional outturn is the position prior to final accounting adjustments (e.g. capital accounting/revaluation/receipts) and any impact from potential changes in prior years’ accounts which are being concluded (e.g. debt calculations). Any overspend after the use of non-recurrent mitigations (following final accounting adjustments and any changes required from the external audit) would require funding from other earmarked reserves and/or General Fund balances. Any final underspend would reduce the required use of earmarked reserves.   2.3       to note that the significant level of 2025-26 savings (£21.821m), agreed by Full Council in February 2025, include reduction in budgets that are delivering underspends in 2024-25 and will, therefore, not be recurrent underspends in 2025-26.   2.4       to note that all service directorates were asked to reduce their net expenditure through the in-year Financial Recovery Plan as set out from paragraph 4.16.   2.5       to note the unfunded Local Government cost pressures that emerged nationally, regionally and locally relating to increases in demand and market prices which need to be addressed by Government changes to policy and/or funding levels.   2.6       to note the provisional outturn Medium Term Financial Strategy (MTFS) savings achievement of £22.3m (80.6%) against the total savings target of £27.7m as set out in paragraph 4.143.   2.7       to note the provisional outturn expenditure on the Council’s Transformation Programme as set out from paragraph 4.137.   2.8       to note the Housing Revenue Account (HRA) revenue budget provisional outturn overspend of £6.3m.   2.9       to note the General Fund capital programme 2024-25 provisional outturn underspend of £16.2m against the capital budget of £137.4m.   2.10    to note the HRA capital programme 2024-25 provisional outturn underspend of £21.2m against the capital budget of £68.3m.   2.11    to note the Council’s historic borrowing and subsequent debt burden and national, regional and local service pressures continue to be critical to the non sustainability of the Council’s revenue budget as set out from para 4.164. Dialogue with MHCLG continues around options of further financial support from Government to ensure the Council can deliver sustainable Local Government services.   2.12    to note that the Council continues to operate Spend Control Panels, and tightened the criteria from July 2024, to ensure that stringent financial control and assurance oversight are maintained.