Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: October 15, 2025

Purpose: This report provides the Council’s financial performance as at Period 3 (June 2025) for the General Fund, Housing Revenue Account (HRA) and the Capital Programme.  It also requests the Executive Mayor and Cabinet to approve changes to the 2025-26 capital programme.  

Content: For the reasons set out in the report, the Executive Mayor and Cabinet AGREED:   2.1 to note the General Fund revenue budget outturn is forecast at Period 3 to underspend at financial year end by £21.8m, contributing to the target as required by the Stabilisation Plan. This would reduce the necessary level of capitalisation directions from £136m to £114.2m.   2.2 to note that service directorates have been asked to reduce their net expenditure below their budgets so that the annual budget can be balanced with reduced use of capitalisation directions, including achievement of the £27.3m Stabilisation Plan target as set out from paragraph 5.18. It should not be underestimated what a challenge this will be against the background of increased demand pressures which are continuing to build across local government as well as increased market prices.   2.3 to note the unfunded local government cost pressures that exist 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.   2.4 to note that two months of Financial Performance Reports are being removed from the Cabinet reporting cycle from 2025-26 onwards (being the removal of the Period 4 and Period 7 reports). The reason is to prioritise service and finance officer time on more value-added activities, strengthening the ability for more tactical and strategic work on financial areas, as set out from paragraph 5.10.   2.5 to note the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.3m (84.9%) against the total savings target of £25.1m as set out in paragraph 5.114.   2.6 to note the Housing Revenue Account (HRA) revenue budget forecast outturn is a breakeven position.   2.7 to approve the various General Fund capital additions, virements and re-profiling across years as set out in paragraph 5.142 (and detailed in the table following paragraph 5.143), which in total comprise a net budget decrease to the 2025-26 General Fund capital programme of £6.035m.   2.8 to note the General Fund capital programme 2025-26 forecast underspend of £27.3m (9.9%) against the revised budget (including the net decrease to be agreed through this report) of £275.9m. The expected decrease in capitalisation direction usage owing to the Stabilisation Plan accounts for this £27.3m forecast underspend, however, only £22.4m of this has been evidenced to date at Period 3.   2.9 to note the HRA capital programme 2025-26 forecast breakeven position against the capital budget of £120.5m.   2.10 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 5.134.   2.11 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.   2.12 to note that current forecasts are based on the best available information at the time and will be subject to review and change during the financial year.