Issue - meetings

To receive a report by Sean Cremer, Corporate Director, Finance and Commercial.

The Corporate Director for Finance and Commercial introduced the report. It was the usual pack of information covering the revenue budget capital, debt management and other financial management. The revenue forecast at £4.4m overspend which resulted in an £866,000 improvement. The table on page 330 breaks down the movement within the directorates, Adults and Housing was seeing a high level of demand which was offset by some improvement in the children’s directorate and in place. Not taken external borrowing at the level originally though. The position was improving going into Q3. The papers went through cabinet and reprofiled the capital program, so the reports were slightly out of date.  

Answers to Cllr Questions:

-          Do tend to see the large overspend forecasts in Q1 and Q2 but as pressure comes through, there had been opportunities to hold back discretionary spend from other directorates. To take a more sustainable way forwards started with the budget set at the beginning of the year, effectively how many services people receive from the council for how long continued pressure. Took decisions straight out the Q1 position around holding vacancies and restricting non-essential spending, setting out that the control measure will remain in place until such a time at which they can be released. Already looking toward, the 27/28 budgeting process to make sure there is a certain degree of funding.

The committee noted the report.

To consider a report of the Cabinet Member for Finance and Capital Strategy.

(a)           That the Senior Leadership Team’s forecast as of December 2025 including progress on the transformational and efficiency savings incorporated into the budget, be noted.

(b)           That the capital programme for 2025/26, be noted.

(c)           That the number and extent of contract exemptions, be noted.

Reason for the decision

To ensure the Council could set and deliver a balanced budget, this report provided an update on the forecast financial position for 2025/26 and the significant operational and financial pressures facing the organisation. In a challenging national context for local authorities, effective oversight of activities and budgets was essential to maintain financial sustainability, support delivery of Council Plan priorities, and ensure the Council continued to provide vital services and wider economic benefits.

The Cabinet Member for Finance and Capital Strategy introduced the quarter 3 financial management report which provided a comprehensive overview of Dorset Council’s financial position as of 31 December 2025.  The report also highlighted key challenges, risk and actions for the 2025/2026 fiscal year.

Cabinet noted

(a)           That the Senior Leadership Team’s forecast as of December 2025 including progress on the transformational and efficiency savings incorporated into the budget, be noted.

(b)           That the capital programme for 2025/26, be noted.

(c)           That the number and extent of contract exemptions, be noted.

Reason for the report

To ensure the Council could set and deliver a balanced budget, this report provided an update on the forecast financial position for 2025/26 and the significant operational and financial pressures facing the organisation. In a challenging national context for local authorities, effective oversight of activities and budgets was essential to maintain financial sustainability, support delivery of Council Plan priorities, and ensure the Council continued to provide vital services and wider economic benefits.