Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: November 12, 2025

Purpose:

Content: Cabinet received a report detailing the Quarter 2 2025/26 financial review which highlighted a stable overall position for the Council, with a marginal projected overspend of £1,380 in the General Fund, largely driven by targeted investments in capital resilience, staffing pressures, and inflationary impacts such as pay awards and insurance premiums.   Members were informed that the Council remained within its delegated budget variation limits, with reserves and balances forecast to remain above minimum thresholds.   In relation to Capital, £10 million of expenditure had been rephased into future years and reflected revised delivery timelines for major housing and regeneration projects such as The Oval and Kenilworth.  It was noted that the capital programme remained fully funded, with adjustments to financing reducing reliance on borrowing and revenue contributions due to higher-than-expected right to buy capital receipts.   The Strategic Director and CFO advised that the General Fund 2025/26 budget now reflected the increase in the pay award.   In relation to the Right to Buy receipts the Council had received, the Portfolio Holder for Housing advised that although tenants had the right to buy their Council properties, it was better for the Council to retain its council stock and retain the consequent rent revenue.   Members thanked the Officers involved in the budgetary process for the substantial work in producing the report.   It was RESOLVED:   General Fund   1             That the 2025/26 second quarter projected net increase in General Fund expenditure of £1,380 be approved; 2             That the use of EPR reserve funding for the initial supply of caddy liners, at a cost of £11,120 be approved; 3             That the proposed movement on reserves as detailed in paragraph 4.3.1 be noted; 4             That Revenue Contribution to Capital Outlay (RCCO) of £150,000 to fund future urgent unplanned capital works be approved.   Housing Revenue Account   5          That the 2025/26 second quarter net decrease in HRA expenditure of £164,550 be approved.   Capital Programme   6     That the General Fund capital budget re-phasing of £6.4 Million from 2025/26 to future years be approved; 7     That the Housing Revenue Account capital budget re-phasing of £3.6 Million from 2025/26 to future years be approved; 8     That net changes to budgets fully grant and external contributions funded of (£246K) in paragraph 4.9.2 be noted; 9     That General Fund virements in section 4.10 be approved; 10  That an additional £150K be added to the deferred works reserve funded by revenue contributions to capital in 2025/26; 11  That the proposed changes to the funding of the General Fund and HRA capital budgets in section 4.11 be approved.