Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: November 19, 2025

Purpose: This report provides the Council’s financial performance as at Period 5 (August 2025) for the General Fund, Housing Revenue Account (HRA) and the Capital Programme. The report forms part of the Council’s financial management process for publicly reporting financial performance and supports the Executive Mayor’s Business Plan 2022-2026 objective one “The council balances its books, listens to residents and delivers good sustainable services”.

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 5 to underspend at financial year end by £22.6m, contributing to the target as required by the Stabilisation Plan. This would reduce the necessary level of capitalisation directions from £136m to £113.4m.   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 5.15. 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 the progress in Medium Term Financial Strategy (MTFS) savings achievement of £21.7m (86.2%) against the total savings target of £25.1m as set out in paragraph 5.106.   2.5 to note the Housing Revenue Account (HRA) revenue budget forecast outturn is a breakeven position.   2.6 to note the General Fund capital programme 2025-26 forecast underspend of £36.8m (13.4%) against the revised budget of £275.9m. The expected decrease in capitalisation direction usage owing to the Stabilisation Plan accounts for £27.3m of the forecast underspend, however, only £23.2m of this has been evidenced to date at Period 5.   2.7 to note the HRA capital programme 2025-26 forecast underspend of £22.5m (18.6%) against the capital budget of £120.5m.   2.8 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 5.127.   2.9 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.   2.10 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.