Purpose

The report provides the view of the S151
Officer on the robustness of the proposed budget for
2026-27,  the adequacy of forecast
levels of reserves and associated risks.

Content

Resolved –
 
That
it be recommended to Council:
 

(1)      That Members have
regard to this report in setting the budget, and in particular note
the conclusions that provided that:
 
Ø 
the Government supports the Council with a “minded to”
Capitalisation Direction for financial year 2026/27;
 
Ø 
the recommendations in this and the other budget reports are agreed
and actioned in full
 
Ø 
reserves continue to be built up as required;
 
Ø 
risks are
properly and promptly managed;
 
Ø 
financial management issues are successfully addressed;
 
then
the overall estimates are sufficiently robust for the Council to
set a balanced budget for 2026/27.
 
(2)      That Members agree:
 
Ø 
that the
level of reserves be increased;
 
Ø 
to implementation in full of the financial strategy ie that the Council:
 
·      
identifies an estimated £50m of revenue
savings for 2027/28 and 2028/29;
·      
identifies £100m of assets to be sold to
generate capital receipts, and investigates the potential for
more;
·      
operates expenditure control panels as set out in
the report until at least 2027/28;
·      
continues with its review of financial management
and finances of the Council;
·      
invests in core functions necessary and subject
to business cases;
 
Ø 
any non delivery of any planned revenue
savings will need to be absorbed within 
cash limited Departmental budgets (in consultation with
S151).

(3)      That Members note:
 
Ø 
the assessment of the current financial position of the Council;
 
Ø 
that this
assessment is the result of emerging and recent work. The
situation will change and the estimated financial position and
solutions will require continual development and refinement and
will likewise vary as the year progresses;
 
Ø 
the s151
officer is not minded to issue a s114
notice at this point working on the basis that the above
assumptions will be supported and seen through on time and in
full;
 
Ø 
given the
extremely challenging financial situation the Council finds itself
in, which it has started to address, if the recommendations are not
agreed, or if the assumptions are not delivered as assumed then
very serious consideration will be given to the issuing of a s114
notice;
 
Ø 
as with all
budgets there is the potential for amendments to be proposed/agreed
which could change the overall package of proposals. In that
respect, it should be highlighted that this statement would have to
be amended if a decision was proposed that leads to the
Council’s budget not being in balance. In addition, any other
amendments would be considered against the scale of the overall
budget and depending upon the extent and nature, may result in a
revised statement.

 
To be actioned
by: Interim Strategic Director of
Corporate Resources / S151
 
Overview and Scrutiny Area:
Corporate                                
 
(Steven Mair)