Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: August 21, 2025

Purpose: To provide a finance Update for Q1 to council

Content: The Cabinet considered a report of the Director of Corporate Services, which sought to inform of the Council’s financial position at the end of June 2025. The report also sought approval of the budget pressures request outlined at section 5.3.1 of the report and agreement to switch capital budgets within Children, Corporate, and Economy & Place directorates as detailed in section 5.6.3 of the report and the switch of funding from Economy to Townships of £3,500k as detailed in section 5.6.3 of the report.   The Cabinet Member for Finance and Growth delivered a brief summary of the report’s key points.   The Head of Finance – Corporate was in attendance to present the information and to address the questions and the comments of the Cabinet Members.   The Officer informed that the report contained details of the 2025/26 forecast Revenue outturn position with a pressure of £3,935k, the 2025/26 forecast Capital Outturn position was £134,192k, after rephasing of £120,385k into future years. The forecast 2025/26 Collection Fund position, being a surplus of £1,868k, including the Council’s share of £1,687k. Quarter 1 updated on the Property Growth Fund position as detailed in section 5.8 of the report and the Treasury Management position, discussed in section 5.9, and Appendix C to the report.   The Officer continued informing that, as a consequence of underspends in the GMCA City Region Sustainable Transport Settlement (CRSTS) elsewhere, the Council had secured a further £10m of funding from the GMCA for the delivery of specific transport projects by March 2027.  The receipt of this additional funding had led to a review of existing capital funded schemes and supported the reallocation of £3.5m of the existing capital programme monies to be split equally across the twenty wards for the delivery of a programme of place-based projects to be agreed by Members.   Members noted recent public commentary regarding overspend in children's services and SEND transport. It was emphasised that these services were vital to families and children with special educational needs and disabilities, and continued support remains a priority. The overspend was acknowledged as necessary to maintain service quality and accessibility. It was further noted that, despite financial pressures, the local authority performed well in comparison to others, with a significantly smaller funding gap, and efforts were being made to ensure children were not disadvantaged. In relation to highways, it was recognised as a key asset with high public expectations, reflecting the aspirations of local residents.   Resolved: 1.    That the 2025/26 forecast positions for Revenue, Capital, and the Collection Fund as at the end of June 2025, as detailed in section 5. 2.2 of the report be noted; 2.    That the significant overspend £5.8m in Children Services be noted. A separate report was being presented to 30th September 2025 Cabinet; 3.    That the Budget Pressure requests detailed in section 5.3.1 be approved; 4.    That the update on the Health and Social Care Pooled Budget detailed in section 5.4 of the report be noted; 5.    That the net Capital budget changes of £24,025k, detailed in section 5.6.1 of the report be noted; 6.    That the Capital re-phasing of £120,385k into future years detailed in section 5.6.2, and Appendix B (2) of the report be noted; 7.    That  the request to switch capital budgets within Children, Corporate, and Economy & Place directorates as detailed in section 5.6.3. of the report be approved; 8.    That the switch of funding from Economy to Townships of £3,500k as detailed in section 5.6.3 of 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 of the report, and Appendix C be noted.   Reason for decision: Cabinet Members should be kept updated on the financial position of the authority, as effective budget management was critical to ensuring financial resources were spent in line with the budget and were targeted towards the Council’s priorities. This report focused on the forecast 2025/26 financial position as at the end June 2025.   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.