Decision Maker: Cabinet

Outcome: Recommendations Approved (subject to call-in)

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: December 2, 2025

Purpose: To consider the second quarter revenue and capital monitoring forecast and any specific recommendations on the application of resources in-year, including movements to and from reserves, as required by financial procedure rules.

Content: RESOLVED –   1)    That it be noted the revenue outturn position at Quarter 2 was a forecast overspend of £5.1m (Q1: £5.9m) and that there would be a requirement to balance the budget using reserves should the overspend remain; 2)    That it be noted the Quarter 2 position on the Dedicated Schools Grant (DSG) was an in year deficit of £14.7m (2024/25 £20m) to take the cumulative deficit to £78.5m; 3)    That it be noted the Quarter 2 HRA position was a projected underspend of £318k and any underspend would be taken to HRA reserves at year end. That it also be noted the current forecast year end reserves position was £19m; 4)    That the Quarter 2 forecast capital monitoring position for 2025/26 as set out in the accompanying slides (Appendix 1 slides 39-43 and Appendix 3) be noted along with a proposed net reduction in the 2025/26 position of £29.3m due to (i) £28.9m re-profiling of spend into future years (£23.4m General Fund and £5.5m HRA)  (ii) £0.8m net increase in the capital plan due to increased grant and S106 contributions (iii) approval to fully fund injection into the capital plan for an MHCLG Community Cohesion Grant (£170k) and WYCA Mayoral Renewables Grant Phase 1 (£110k) (iv) delegated authority to the Executive Director of Place and Service Director Finance to accept Mayoral Renewables Grant Phase 2 in the event the Council is successful with its bid (v) approval of the draw down of a fully repayable £250k from the Investment & Modernisation Fund towards an Energy Efficiency Invest to Save Scheme for LED lighting and control upgrades across six Council-owned leisure centres operated by Kirklees Active Leisure (KAL) and (vi) that as a means of helping reduce revenue overspends, an exercise to identify expenditure that could be charged to capital would be undertaken. Any such capitalisation would be funded from capital receipts. 5)    That the Quarter 2 treasury management prudential indicators (slide 43-57, Appendix 1) be noted.