The Cabinet of Bath and North East Somerset Council met on Thursday 10 July 2025 to review the council's financial outturn for the 2024-25 year and to monitor the budget for the current financial year. Key decisions included the approval of the Revenue and Capital Outturn Report for 2024-25, which showed a near-balanced revenue position and a 75% delivery rate for the capital programme. The Cabinet also noted the initial budget monitoring for April to June 2025, highlighting areas of financial risk, particularly within Children's Services, and approved revenue virements. Additionally, the Treasury Management Outturn Report for 2024-25 was noted, confirming that all treasury management indicators were within target levels and that the council had achieved a favourable return on investments.

Revenue and Capital Outturn Report 2024-25

The Cabinet approved the Revenue and Capital Outturn Report for the 2024-25 financial year. The report indicated a near-balanced revenue budget position, with a minor adverse outturn of £0.21 million after accounting for agreed transfers to and from reserves and carry forwards. This represented an improvement of £0.77 million from the Quarter 3 forecast. The report detailed specific revenue carry-forward proposals and approved the write-off of other over-budget amounts as an exception to the Budget Management Rules. A transfer of £0.21 million from corporate earmarked reserves was approved to cover the adverse revenue outturn.

The capital programme saw £53.041 million spent against a budget of £70.534 million, representing 75% delivery. A significant portion of the variance, £16.241 million, was requested for rephasing into the 2025-26 financial year due to project delivery timelines. A net underspend of £1.252 million was removed from the capital programme.

Significant pressures were noted in Children's Services, which reported a £6.18 million overspend primarily due to increased demand and costs in placement and package budgets, particularly for residential care. Despite these pressures, the council maintained high standards of care. Savings and income generation targets for 2024-25 were largely met, with £12.66 million (77%) fully delivered, £2.78 million (17%) mitigated, and only £0.98 million (6%) delayed or undeliverable.

The Dedicated Schools Grant (DSG) reported an overspend of £10.53 million, resulting in a cumulative deficit of £32.795 million. This overspend is primarily attributed to the costs associated with supporting pupils with Special Educational Needs and Disabilities (SEND). The council is working with the Department for Education on a Safety Valve Agreement recovery plan to address this deficit.

Revenue and Capital Budget Monitoring, Cash Limits and Virements – April to June 2025

The Cabinet received an initial overview of the financial position for the 2025-26 financial year, based on data available up to the end of June 2025. The report highlighted areas of highest financial risk, including Children's Services, which faces significant pressures due to rising demand and residential placement costs, with a potential forecast overspend of £4 million to £8 million. Other areas of concern include Waste Services and the Commercial Estate, both facing pressures from staffing and operational costs, and rental income shortfalls respectively.

Savings targets for 2025-26 are being closely monitored, with £9.98 million (71%) of the £14.01 million target forecast as delivered. However, £3.99 million of savings are currently flagged as delayed or undeliverable, posing a material forecast pressure. The council has substantial budgeted contingencies (£9.8 million) to mitigate these risks, with an estimated revised organisation risk exposure of £1.6 million after accounting for these contingencies.

The capital programme for 2025-26 is forecast at £108.2 million against a budget of £108.9 million, with £0.4 million anticipated to be rephased into future years.

Treasury Management Outturn Report 2024-25

The Cabinet noted the Treasury Management Outturn Report for the 2024-25 financial year. The council's borrowing at the year-end was £275.7 million, and investments totalled £32.6 million, both within approved limits. Operational investments achieved an average return of 4.96%, exceeding the 7-day SONIA benchmark rate by 0.12%. Strategic investments met the budgeted return of 4.25%. The report highlighted a favourable outturn of £1.071 million in interest and capital financing costs, primarily due to higher investment returns and savings on Minimum Revenue Provision (MRP) due to capital spend reprofiling. The council's borrowing remained below its Capital Financing Requirement (CFR), indicating effective internal cashflow management. The report also detailed the performance of strategic pooled funds, noting a slight decrease in value due to market conditions, but highlighted the long-term nature of these investments.

Youth Justice Plan 2024-26 - Refresh

The Cabinet recommended that the full Council approve the refreshed Youth Justice Plan for 2024-26. The plan outlines the council's statutory duty, in partnership with health, police, and probation services, to prevent youth offending and re-offending. The report highlighted the low rate of youth crime in Bath and North East Somerset, with children in the system often being highly vulnerable. The plan's strategic priorities include reducing disproportionality, strengthening participation, embedding child-first principles, and reducing serious violence. The report noted positive inspection results, with three areas rated Outstanding and nine rated Good.

Single Member Cabinet Decisions

The Cabinet noted the list of single member cabinet decisions taken since the previous meeting. These included decisions on the High Littleton and Hallatrow Neighbourhood Development Plan, the Co-Living Position Statement, the re-provision of a Recycling Centre in Locksbrook Road, and funding for the Somer Valley Enterprise Zone.

Questions from Public and Councillors

During the public question session, several key issues were raised:

• Support for Small and Rural Businesses: Councillor Paul Roper outlined the council's existing support mechanisms, including financial planning advice and signposting to grants, and indicated that Small Business Saturday would be investigated for future integration into retail activities. Parking charges in market towns were noted as being competitively priced or free in some areas, with a focus on sustainable transport in Bath.
• Youth Justice and National Inquiries: Councillor Paul May assured that learning from any national inquiries into grooming gangs would be considered and embedded into strategic priorities through the Bath and North East Somerset Community Safeguarding and Safety Partnership.
• Active Travel and Consultation: Councillor Lucy Hodge addressed concerns about the lack of progress on cycle routes, stating that the Bath Riverline to Claverton Down is identified as a strategic route requiring upgrades and that the council is exploring funding opportunities. Regarding consultation, Councillor Manda Rigby explained that there is no fixed number of responses required for schemes to proceed, but that resident feedback shapes decisions. Councillor Joel Hirst clarified that the Camden bus gate was abandoned due to its potential to displace traffic into the city centre, not solely due to the number of objections.
• Cycle Parking: Councillor Lucy Hodge acknowledged the importance of cycle hangars for residents in flats and stated that the Milsom Quarter Public Realm Scheme aims to provide more accessible and varied cycle parking.
• Children's Health and Wellbeing: Councillor Paul May highlighted the council's commitment to children's health and wellbeing through the Health and Wellbeing Strategy, with a focus on ensuring children are healthy and ready for learning. Initiatives like the Early Years team's promotion of play-based programmes and the council's planning policies for green spaces were mentioned.
• School Streets: Councillor Lucy Hodge confirmed that a Phase 1 programme of school streets schemes has been developed and will be subject to a Single Member Decision, with the first schemes expected by March 2026.
• Council-Owned Bikes: Councillor Lucy Hodge stated that staff are informed of the process for reporting bike faults and that annual servicing is conducted.
• Clean Air Zone: Councillor Sarah Warren provided information on nitrogen dioxide monitoring data and directed attendees to the council's website for reports.
• Parade Gardens: Councillor Sarah Warren confirmed that Parade Gardens is no longer staffed by the council, with the café run by a private business.
• EV Charging Cable Gullies: Councillor Joel Hirst explained that the EV charging cable gully trial would involve three providers and that the selection process for participants had begun. He clarified that residents in the trial would not be given a right to park their EV in front of their home.
• London Road/Snow Hill Planter: Councillor Lucy Hodge stated that the council is considering new locations for the planter at the corner of London Road and Snow Hill, with a move planned for autumn.
• Street Lighting and Ecology: Councillor Lucy Hodge noted that LED streetlights have dimming profiles to mitigate over-illumination and that side shields could be added to lights near Kensington Meadows if deemed necessary.
• Cleveland Bridge: Councillor Lucy Hodge confirmed that the 18-tonne weight restriction on Cleveland Bridge is in place until October 2025 and will be reviewed based on ongoing bridge monitoring data.
• M4 to South Coast Study: Councillor Joel Hirst clarified that the M4 to Dorset Coast Strategic study provides a long-term vision and evidence base, and that National Highways and local authorities will continue to explore options for infrastructure improvements.
• East of Bath Park and Ride: Councillor Joel Hirst stated that detailed proposals for the east of Bath corridor are premature, but that the council is working with Wiltshire Council on sustainable transport options.
• Walcot Bus Gate Consultation: Councillor Joel Hirst reiterated that there is no fixed number of responses required for schemes to proceed, and that resident feedback shapes decisions.
• Cycle Route Safety: Councillor Lucy Hodge confirmed that project teams are qualified and aware of relevant guidance, including LTN1/20.
• World Heritage City Cost-Benefit Analysis: Councillor Matt McCabe stated that while there isn't a specific cost-benefit analysis for Bath's World Heritage status, reports from UNESCO-UK estimate significant economic contributions.
• Liveable Neighbourhoods Consultation: Councillor Joel Hirst explained that consultation responses help shape schemes, but that strategic council priorities also influence decisions.
• Free School Meals Auto-Enrolment: Councillor Paul May confirmed that the auto-enrolment process for free school meals is progressing well and that more detailed numbers will be available in July.
• Developer Contributions (S106): Councillor Matt McCabe detailed the council's process for securing developer contributions through Section 106 agreements, emphasizing their necessity, direct relation to development, and proportionality. He highlighted the council's efforts to ensure transparency and oversight of these funds.
• Local Letting Policies: Councillor Matt McCabe explained the local connection criteria for the Homesearch Scheme, prioritizing residents and those working in the area, with specific provisions for rural communities.
• School Streets: Councillor Lucy Hodge confirmed that a Phase 1 programme of school streets schemes is being developed, with initial implementations expected by March 2026.
• Council-Owned Bikes: Councillor Lucy Hodge stated that staff are informed of the reporting process for bike faults and that annual servicing is conducted.
• Clean Air Zone Data: Councillor Sarah Warren directed attendees to the council's website for the latest nitrogen dioxide monitoring data and Clean Air Zone reports.
• Parade Gardens Staffing: Councillor Sarah Warren confirmed that Parade Gardens is no longer staffed by the council, with the café operated by a private business.
• EV Charging Cable Gullies: Councillor Joel Hirst clarified that the EV charging cable gully trial does not grant residents a right to park and that the selection process for participants is underway.
• Street Lighting and Ecology: Councillor Lucy Hodge acknowledged concerns about street lighting impacting wildlife and stated that LED streetlights have dimming profiles to mitigate over-illumination, with the possibility of adding side shields to lights near Kensington Meadows.
• Cleveland Bridge: Councillor Lucy Hodge confirmed that the 18-tonne weight restriction on Cleveland Bridge is in place until October 2025 and will be reviewed based on ongoing monitoring data.
• M4 to South Coast Study: Councillor Joel Hirst explained that the M4 to Dorset Coast Strategic study is a long-term vision and that National Highways and local authorities will continue to explore infrastructure options.
• East of Bath Park and Ride: Councillor Joel Hirst stated that detailed proposals for the east of Bath corridor are premature, but that the council is collaborating with Wiltshire Council on sustainable transport.
• Walcot Bus Gate Consultation: Councillor Joel Hirst reiterated that there is no fixed number of responses required for schemes to proceed and that resident feedback shapes decisions.
• Cycle Route Safety: Councillor Lucy Hodge confirmed that project teams are qualified and aware of relevant guidance, including LTN1/20.
• World Heritage City Cost-Benefit Analysis: Councillor Matt McCabe noted the absence of a specific cost-benefit analysis for Bath's World Heritage status but referred to broader UNESCO reports estimating significant economic contributions.

The meeting concluded with the noting of the Treasury Management Outturn Report 2024-25, which confirmed that all treasury management indicators were within target levels and highlighted a favourable financial performance.