Purpose

To provide a finance Update for Q1 to council

Content

The Cabinet considered a report of the
Director of Corporate Services, which sought to inform of the
Council’s financial position at the end of June 2025. The
report also sought approval of the budget pressures request
outlined at section 5.3.1 of the report and agreement to switch
capital budgets within Children, Corporate, and Economy & Place
directorates as detailed in section 5.6.3 of the report and the
switch of funding from Economy to Townships of £3,500k as
detailed in section 5.6.3 of the report.
 
The Cabinet Member for Finance and
Growth delivered a brief summary of the report’s
key points.
 
The Head of Finance – Corporate
was in attendance to present the information and to address the
questions and the comments of the Cabinet Members.
 
The Officer informed that the report
contained details of the 2025/26 forecast Revenue outturn position
with a pressure of £3,935k, the 2025/26 forecast Capital
Outturn position was £134,192k, after rephasing of
£120,385k into future years. The forecast 2025/26 Collection
Fund position, being a surplus of £1,868k, including the
Council’s share of £1,687k. Quarter 1 updated on the
Property Growth Fund position as detailed in section 5.8 of the
report and the Treasury Management position, discussed in section
5.9, and Appendix C to the report.
 
The Officer continued informing that,
as a consequence of underspends in the GMCA City
Region Sustainable Transport Settlement (CRSTS) elsewhere, the
Council had secured a further £10m of funding from the GMCA
for the delivery of specific transport projects by March
2027.  The receipt of this additional funding had led to a
review of existing capital funded schemes and supported the
reallocation of £3.5m of the existing capital programme
monies to be split equally across the twenty wards for the delivery
of a programme of place-based projects to be agreed by Members.
 
Members noted recent public commentary
regarding overspend in children's services and SEND transport. It
was emphasised that these services were vital to families and
children with special educational needs and disabilities, and
continued support remains a priority. The overspend was
acknowledged as necessary to maintain service quality and
accessibility. It was further noted that, despite financial
pressures, the local authority performed well in comparison to
others, with a significantly smaller funding gap, and efforts were
being made to ensure children were not disadvantaged. In relation
to highways, it was recognised as a key asset with high public
expectations, reflecting the aspirations of local
residents.
 
Resolved:

1.   
That the 2025/26 forecast positions for Revenue, Capital, and the
Collection Fund as at the end of June 2025, as detailed in section
5. 2.2 of the report be noted;

2.   
That the significant overspend £5.8m in Children Services be
noted. A separate report was being presented to 30th September 2025
Cabinet;

3.   
That the Budget Pressure requests detailed in section 5.3.1 be
approved;

4.   
That the update on the Health and Social Care Pooled Budget
detailed in section 5.4 of the report be noted;

5.   
That the net Capital budget changes of £24,025k, detailed in
section 5.6.1 of the report be noted;

6.   
That the Capital re-phasing of £120,385k into future years
detailed in section 5.6.2, and Appendix B (2) of the report be
noted;

7.   
That  the request to switch capital
budgets within Children, Corporate, and Economy & Place
directorates as detailed in section 5.6.3. of the report be
approved;

8.   
That the switch of funding from Economy to Townships of
£3,500k as detailed in section 5.6.3 of the report be
approved;

9.   
That the Property Growth Fund update in section 5.8.of
the report be noted;
10.
That the Treasury Management update for Quarter 1 in
section 5.9 of the report, and Appendix C be noted.
 
Reason for decision:
Cabinet Members should be kept updated
on the financial position of the authority, as effective budget
management was critical to ensuring financial resources were spent
in line with the budget and were targeted towards the
Council’s priorities. This report focused on the forecast
2025/26 financial position as at the end June 2025.
 
Alternatives considered and
rejected:
There was no alternative, as the
Council financial reporting complies with CIPFA’s Financial
Management Code and its standards to ensure management of financial
resources in the short, medium and long term, management of
financial resilience to meet unforeseen demands on services, and
management of unexpected shocks within financial circumstances.