Content

For the reasons set out in the
report, the Executive Mayor and Cabinet AGREED:
 
2.1
     to note the General
Fund revenue budget provisional overspend of £29.2m after the
one-off benefit of £3.7m transformation earmarked reserves
not allocated to transformation/improvement projects. This reduces
to a £0.7m underspend after the forecast utilisation of
£51m capitalisation directions (including £13m not used
in 2023-24), utilisation of the £5.0m risk contingency budget
and utilisation of £13.0m corporate earmarked reserves and
£3.9m business risk earmarked reserve.
 
2.2       to
note that the provisional outturn is the position prior to final
accounting adjustments (e.g. capital
accounting/revaluation/receipts) and any impact from potential
changes in prior years’ accounts which are being concluded
(e.g. debt calculations). Any overspend after the use of
non-recurrent mitigations (following final accounting adjustments
and any changes required from the external audit) would require
funding from other earmarked reserves and/or General Fund balances.
Any final underspend would reduce the required use of earmarked
reserves.
 
2.3       to
note that the significant level of 2025-26 savings
(£21.821m), agreed by Full Council in February 2025, include
reduction in budgets that are delivering underspends in 2024-25 and
will, therefore, not be recurrent underspends in
2025-26.
 
2.4       to
note that all service directorates were asked to reduce their net
expenditure through the in-year Financial Recovery Plan as set out
from paragraph 4.16.
 
2.5       to
note the unfunded Local Government cost pressures that emerged
nationally, regionally and locally relating to increases in demand
and market prices which need to be addressed by Government changes
to policy and/or funding levels.
 
2.6       to
note the provisional outturn Medium Term Financial Strategy (MTFS)
savings achievement of £22.3m (80.6%) against the total
savings target of £27.7m as set out in paragraph
4.143.
 
2.7       to
note the provisional outturn expenditure on the Council’s
Transformation Programme as set out from paragraph
4.137.
 
2.8       to
note the Housing Revenue Account (HRA) revenue budget provisional
outturn overspend of £6.3m.
 
2.9       to
note the General Fund capital programme 2024-25 provisional outturn
underspend of £16.2m against the capital budget of
£137.4m.
 
2.10
   to note the HRA capital
programme 2024-25 provisional outturn underspend of £21.2m
against the capital budget of £68.3m.
 
2.11
   to note the Council’s
historic borrowing and subsequent debt burden and national,
regional and local service pressures continue to be critical to the
non sustainability of the
Council’s revenue budget as set out from para 4.164. Dialogue
with MHCLG continues around options of further financial support
from Government to ensure the Council can deliver sustainable Local
Government services.
 
2.12
   to note that the Council
continues to operate Spend Control Panels, and tightened the
criteria from July 2024, to ensure that stringent financial control
and assurance oversight are maintained.