Agenda item

A presentation will be given in respect of the Corporate Financial Monitoring Report for Quarter 2 2025-2026, with reference to the report submitted to Cabinet on 2^nd December 2025.

Contact: James Anderson – Head of Finance and Accountancy.

John Bartlett, Head of Commercial Services presented the Corporate Financial Monitoring Report for Quarter 2 2025-2026, with reference to the report submitted to Cabinet on 2^nd December 2025.

The Portfolio Holder for Finance and Regeneration, Councillor Graham Turner, introduced the item.

The presentation set out:

·       Revenue headlines

·       Revenue monitoring, with a breakdown across each directorate.

·       Key pressures on each directorate.

·       Housing Revenue Account position and variances.

·       Capital Headlines.

·       Direct Schools Grant (DSG) Headlines.

Highlighted points included:

·       The projected outturn pressure had reduced from £5.9 million to £5.1 million since Quarter 1; the lowest Q2 overspend since the pandemic.

·       The key reasons for variances were due to demand-led pressures in children’s and adults’ services.

·       There was slippage of £6.6 million in relation to the savings target. The authority was currently on track to deliver 78% of the savings target of £30.2 million.

·       Any overspend remaining at year end would need to be funded from General Fund Reserves.

·       The Housing Revenue Account (HRA), had a forecast underspend of £318k but pressures remained in relation to building safety and disrepair cases.

·       The Capital Plan had been reviewed and reprofiled to £254.6 million from £283.9 million with slippage of £28.9 million into subsequent years. The multi-year capital plan would continue to be kept under review.

·       The Direct Schools Grant position showed an in-year deficit of £14.7 million. The statutory override had been extended to March 2028.

Questions and comments were invited from Committee Members, with the following issues being covered:

·       Children’s Services were working to develop more in-house provision which would help to address issues with the cost of external residential placements. The focus was on maintaining children living at home wherever possible and additional budget investment was going into an edge of care service and fostering.

·       Two new special schools were being constructed which would assist significantly in bringing external placements back into the district.

·       In respect of reflecting the rising demand on adult health and social care services, investment would be included within the budget for next year to address those pressures.

·       In relation to the variance associated with in-house residential and supported living provision, specifically in respect of Ings Grove, further information could be provided after the meeting.

·       At the current time there were £63 million of useable reserves of which £37 million was earmarked. This figure would reduce if needed to cover an overspend position at the year end. The administration was satisfied that the level of reserves was adequate at this point in time.

·       Investment was proposed in the budget for 2026/27 to mitigate increases in demand and inflation.

·       It was considered that the level of risk was lower than in previous years and that an anticipated fall in interest rates would improve the treasury management position.

RESOLVED –

(1)           That the Portfolio Holder for Finance and Regeneration and the Head of Commercial Services be thanked for attending the meeting and updating the Committee.

(2)           That the current position be noted and it be recommended that these reports continue to be submitted to the Committee on a regular basis so that Lead Members can pick up any items within the remit of their Panel that may require further scrutiny.