Agenda item - July 2025 (Period 4) financial management report 2025/26

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

(a) That the Senior Leadership Team’s (SLT) forecast of the full year’s outturn for the Council, made at the end of July 2025 including progress of the transformational and efficiency savings incorporated into the budget, be noted.

(b) It was noted that SLT will be bringing forward financial control measures in response to the forecast position.

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

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

Reason for the decision

The Council was legally required to set a balanced budget every year and so must deliver services within the resources made available through the revenue and capital budgets for 2025/26. The report summarised the Council’s forecast financial performance for the year at the end of July 2025.

In the absence of the Cabinet Member for Finance and Capital Strategy, the Leader of the Council set out the July (period 4) financial management report and proposed its recommendations. This was seconded by Cllr J Andrews.

In presenting the financial position, the Leader acknowledged the significant challenges outlined in the report, emphasising that while these challenges were real, so too was the Council’s commitment to managing its resources responsibly. The report highlighted a projected overspend of £7.7 million, representing 1.8% of the total budget requirement of £417.2 million. The main financial pressure continued to stem from Adult Social Care, while Children’s Services remained on track to achieve their savings targets. There was also a delay in savings from the Our Future Council (OFC) transformation programme. Members were further advised that efforts were ongoing to manage slippage, introduce tighter financial controls, and transparency would continue to be maintained throughout the process.

In response to a question, the Cabinet Member for Children’s Services, Education and Skills confirmed that “Birth to settled Adulthood” was not a separate directorate but a cross-cutting project between children and adult services. In response to a question about reprofiling, Members were advised that in relation to the capital programme, it’s a process of adjusting the timing of planned spending or investment to deliver a project.

Other details set out in the financial paper were discussed and clarified.

In response to a question regarding compliance related spending failures, the Leader acknowledged the historic shortcomings in the Council’s health and safety management of its buildings dating back to 2019. He confirmed that this matter was being actively scrutinised by Audit and Governance Committee, by a cross-party member group led by Cllr S Clifford, to review the work undertaken, outline next steps and report back to a future meeting of Audit and Governance Committee.

The Leader also confirmed that opportunity to recover funds was being investigated and that all members would be fully briefed in due course.

In reply to concerns about achieving the proposed OFC savings, the Chief Executive explained that work was underway to review how savings were being delivered, alongside strengthening in-year spending controls. This formed part of a complex change programme, which must align with decisions around the new ERP system to ensure coherence and effectiveness. However, there remained a commitment to delivering the in-year budget position with the proposed savings being met over the course of the programme.