Issue - meetings

To consider a report of the Cabinet Member for Resources & Finance.

(a)    That the draft revenue and capital outturn and the financial performance for the year ended 31 March 2026, be noted.

(b)    That the movement of the £0.169m surplus at the year end to general reserves be approved.

Reason for the decision

Although the report was primarily for noting the outturn position, Cabinet’s approval was required for the transfer of the £0.169m surplus to general reserves.

While the report did not seek Cabinet approval of the outturn, the financial position at 31 March 2026 was critical in informing the next Medium-Term Financial Plan (MTFP) update and the development of the 2027/28 and 2028/29 budget strategy, in line with the multi-year settlement announced in 2025/26.

In addition to reporting outturn, with the financial performance for the year materially complete, it was important for Cabinet to review the risks the organisation now faces and to consider areas where it wishes to make strategic investments and/or to repurpose and prioritise its reserves to facilitate these aims.

The Leader of the Council presented the report, including, in his absence, a video introduction from the Cabinet Member for Finance and Resources. He set out the Council’s draft outturn position for 2025/26, noting that, in simple terms, the Council had ended the year in a broadly balanced position, with a small underspend of £0.169 million. This was a notable milestone, as it represented the first underspend achieved since Dorset Council became a unitary authority.

However, the Leader cautioned that this positive headline figure should be viewed in context, as outlined in the report, with several major service areas continuing to experience underlying financial pressures. Members were asked to note the financial performance for the year ended 31 March 2026 and to approve the movement of the £0.169m surplus to the year end to general reserve.

It was proposed by Cllr N Ireland and seconded by Cllr J Andrews

Decision

(a)    That the draft revenue and capital outturn and the financial performance for the year ended 31 March 2026, be noted.

(b)    That the movement of the £0.169m surplus at the year end to general reserves be approved.

Reason for the decision

Although the report was primarily for noting the outturn position, Cabinet’s approval was required for the transfer of the £0.169m surplus to general reserves.

While the report did not seek Cabinet approval of the outturn, the financial position at 31 March 2026 was critical in informing the next Medium-Term Financial Plan (MTFP) update and the development of the 2027/28 and 2028/29 budget strategy, in line with the multi-year settlement announced in 2025/26.

In addition to reporting outturn, with the financial performance for the year materially complete, it was important for Cabinet to review the risks the organisation now faces and to consider areas where it wishes to make strategic investments and/or to repurpose and prioritise its reserves to facilitate these aims.