Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: February 10, 2026

Purpose: To provide a finance update for Q3 to council

Content:  The Cabinet considered a report of the Director of Corporate Services and Chief Finance Officer, which sought to inform of Council’s forecast 2025/26 Financial Position at the end of December 2025.   The Cabinet Member Finance and Growth delivered a brief summary of the report’s key points.   The Interim Deputy Chief Finance Officer was in attendance to present the report and to address the questions and comments of the Cabinet Members and of the Leader of the Conservative Group.   The Senior Officer informed that the 2025/26 forecast Revenue outturn position was a pressure of £4,110k, arising from pressures in Children’s Services, Integrated Care & Health, Economy & Place, and Corporate Services directorates.   The pressures were being partially mitigated by in year savings relating to forecast increased Treasury income, and in year savings in Public Health directorate. The forecast pressure was prior to the consideration of non-automatic Budget Carry Forward requests. If the Council had an overall overspend position at the end of the financial year, the Budget Carry forward requests would not be approved. Any variation from budget at outturn would be transferred to or from the Equalisation reserve.    • Non-automatic Budget Carry Forward requests of £825k had been received, and if these were approved, the 2025/26 revenue pressure would increase to £4,935k.  • The 2025/26 forecast Capital Outturn position was £99,818k, after rephasing of £14,288k into future years. • The forecast 2025/26 Collection Fund position, being a surplus of £3,717k, including the Council’s share of £3,378k. The Council’s share of the surplus had been reflected in the Council’s 2026/27 budget.  • Quarter 3 updates on: o the Property Growth Fund position as detailed in section 5.8 of the report; and  o the Treasury Management position, discussed in section 5.9 of the report, and Appendix C to the report.   Resolved: 1.     That the 2025/26 forecast positions for Revenue, Capital, and the Collection Fund as at the end of December 2025, as detailed in section 5 of the report be noted; 2.     That the significant overspend of £7.358m in Children Services be noted; a separate report is to be presented to March 2026 Cabinet. 3.     That the non- automatic Budget Carry Forward requests summarised in section 5.3.1 of the report be noted; 4.     That the Budget Pressure balance shown in section 5.3.2 of the report be noted; 5.     That the update on the Health and Social Care Pooled Budget detailed in section 5.4 of the report be noted; 6.     That the net Capital budget changes of £637k, detailed in section 5.6.1 of the report be noted; 7.     That the Capital re-phasing of £14,288k into future years detailed in section 5.6.2 of the report, and Appendix B (2) to the report be noted; 8.     That the request to switch capital budgets within Economy & Place directorates as detailed in section 5.6.3 of the report be agreed; 9.     That the Property Growth Fund update in section 5.8 of the report be noted; 10. That the Treasury Management update for Quarter 2 in section 5.9 of the report, and Appendix C to the report be noted;   Reason for decision: Cabinet Members should be 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 December 2025.   Alternatives considered and rejected: There were no alternative, as the Council financial reporting complied 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.