Purpose

To inform Cabinet of the 2026/27 forecast Outturn for Children's Services based on the position at the end of the first quarter

Decision

Cabinet considered a report of the Director of Children's Services, which provided an update on the Directorate's forecast financial position for 2026/27, details of the key issues impacting the service, and progress against the recovery plan.

The report author attended the meeting, presented the report, and responded to questions and comments from Cabinet Members.

The Senior Officer advised of the Quarter 1 financial position, the 2026/27 recovery plan, and the medium-term recovery strategy. It was noted that the Directorate was forecasting an overspend, primarily attributable to the cost of residential placements and high-cost foster care arrangements.

The Senior Officer also advised of the work being undertaken to manage expenditure and improve outcomes, including initiatives relating to home-to-school transport, the Fostering Hub, and the Best Start in Life programme. Cabinet also noted that four children's homes were now operational within the Borough.

During discussion, Members commended Children's Services on the development of the new children's homes, noting the high-quality facilities provided and the positive way in which they had integrated into local communities. It was further noted that the homes enabled more children to remain within the Borough and receive care closer to their families and support networks.

Members also welcomed the positive feedback received through Corporate Parenting arrangements.

Resolved that the forecasted financial position for 2026/27 at Q1 and related service commentary, and plans for the remainder of 2026/27 and the medium term be noted.

Reason for decision:

Cabinet Members should be kept updated on the financial position of all Council directorates, as effective budget management is critical to ensuring financial resources are spent in line with the budget, and are targeted towards the Council’s priorities.

Alternatives considered and rejected:

No alternative as financial reporting ensures the Council complies with CIPFA’s Financial Management Code and its standards for 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.