Decision details

To consider and note the financial outturn reports in relation to revenue, capital & treasury management. Make rollover decisions as appropriate based on the finalised financial position.

In the absence of a Cabinet, the decision will be made by the Chief Executive, Steve Mawson.

1) That the improved General Fund revenue outturn position of +£1.8m overspend for 2025/26 compared to £4.1m at Q3be noted; but that there remain significant pressures in both adults and children’s social care which are of concern going forward into 26/27;

2) That the total delivered savings of £19.2m compared to the budgeted savings target of £30.2m (64%) (paragraph 3.2.22) be noted;

3) That the year end position on reserves and balances of £62.5m (excluding Statutory Reserves) be noted, and that the level of general reserve has increased by £1m to £26m as per the 2025/26 approved budget) (paragraphs 3.2.24-28);

4) That approval be given to the creation of the Taxi Licensing earmarked reserve (paragraph 3.2.27), with a balance of £101k at 31/3/26; funded from the cumulative revenue balances for taxi licensing (Paragraph 3.2.28);

5) That the application of the Councils flexible capital receipts strategy to the value of £4m applied against eligible transformation costs in 2025/26 be noted, thereby reducing revenue expenditure, in accordance with the agreed budget (paragraph 3.2.32);

6) That the regular monitoring and review of corporate reserves in 2026/27 would be reported to Cabinet as part of the Quarterly financial monitoring cycle;

7)  That the year end deficit position on the Collection Fund of £10.4m (£10.2m at 31/3/25) which is anticipated be repaid by 2027/28 (paragraphs 3.2.31-34) be noted;

Housing Revenue Account

8) That the HRA revenue outturn position for 2025/26 as an underspend of £628k be noted (£0.9m underspend at Quarter 3) which is transferred to reserves. (Paragraphs 3.2.37-41) That the year end reserves balance of £26m compared to £30.6m in 24/25 be noted;

Capital

9) That the Council capital outturn spend of £209m for 2025/26 be noted;

10) That approval be given to the £10m capital slippage from 2025/26 to 2026/27, noting that the slippage relates to deferred delivery and that the only reductions in the capital plan contained in this report relate to the removal of £0.65m revenue capitalisation budget underspend and £33k of uncommitted rollover from the Capital Plan (paragraph 3.2.49 - 3.2.51);

11) That the revised capital plan for the period 2026/27 onwards after taking into account the re-phasing of schemes including the slippage, additional grant funding assumptions and a change in funding of the Bradley Mills Road Scheme be noted (Appendix 4a: Summary Capital Plan and Appendix 4b: Detailed Capital Plan);

Dedicated Schools Grant (DSG)

12) That the cumulative deficit on the DSG of £80.3m, an increase of £15.9m from the previous year be noted. Within this is the High Needs Block (HNB) which now has a cumulative deficit of £82.2m (after an increase in 2025/26 of £17.5m). The Council is required to report the High Needs Block position in accordance with the national statutory override, which allows the HNB reserve to be held in deficit and shown as a negative balance on the balance sheet. This is set out in the Local Authority Capital Finance and Accounting Regulations;

13) That it be noted, in February 2026 the Council was informed that the Safety Valve Programme would end and 90% of the historic DSG deficit would be paid off by Government during 2026/27 through a High Needs Stability Grant, subject to an agreement with the DfE on the SEND action plan;

The Statutory Override remains in place until March 2028 and it has been indicated by the DfE that a “proportionate” contribution will be made by the DfE towards in year DSG deficits during 2026/2027 and 2027/2028;

It is expected that the Council will be responsible for the remaining 10% and will need to plan accordingly to fund that cost until March 2028;

Treasury Management

14) That the Review of Treasury Management activity for 2025/26 (Appendix 5) be noted;