Purpose

This report provides the
Council’s financial performance as at Period 2 (May 2025) for
the General Fund, Housing Revenue Account (HRA) and the Capital
Programme.  It also requests the
Executive Mayor and Cabinet to approve slippage from 2024-25 for
the capital programme.
 

Content

For the reasons set out in the
report, the Executive Mayor and Cabinet are
AGREED:
 
2.1 to note the General Fund revenue budget outturn is forecast at
Period 2 to
underspend at financial year
end by £16.5m. This would reduce the necessary level of
capitalisation directions from £136m to
£119.5m.
 
2.2 to note that service directorates are asked to reduce their net
expenditure so that the annual budget can be balanced with reduced
use of capitalisation directions, including achievement of the
£27.3m Stabilisation Plan target as set out from paragraph
4.15. It should not be underestimated what a challenge this will be
against the background of increased demand pressures which are
continuing to build across local government as well as increased
market prices.
 
2.3 to note the unfunded local government cost pressures that exist
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.
 
2.4 to note the progress in Medium Term Financial Strategy (MTFS)
savings
achievement of £21.3m
(84.9%) against the total savings target of £25.1m as set out
in paragraph 4.101.
 
2.5 to note the Housing Revenue Account (HRA) revenue budget
forecast outturn is a breakeven position.
 
2.6 to approve slippage from 2024-25 for the General Fund capital
programme of £30.7m and HRA capital programme of
£13.1m.
 
2.7 to note the General Fund capital programme 2025-26 forecast
underspend of £28.7m (10.2%) against the revised budget
(including slippage to be agreed through this report) of
£281.9m. The expected decrease in capitalisation direction
usage owing to the Stabilisation Plan accounts for £27.3m of
this underspend, however, only £17.2m of this has been
evidenced to date at Period 2.
 
2.8 to note the HRA capital programme 2025-26 forecast breakeven
position against the revised capital budget (including slippage to
be agreed through this report) of £120.5m.
 
2.9 to note the Council’s historic borrowing and subsequent
debt burden and
national, regional and local
service pressures continue to be critical to the nonsustainability of the Council’s revenue
budget as set out from para 4.118.
Dialogue with MHCLG continues
around options of further financial support
from Government to ensure the
Council can deliver sustainable local
government services.
 
2.10 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.
2.11 to note that current forecasts are based on the best available
information at the time and will be subject to review and change
during the financial year.