Purpose

This report estimates the Council’s year end position based on information on Quarter 1.

Decision

RESOLVED:

That Cabinet:

1. Noted the detailed position set out in this quarterly report which forecasts a favourable variation of £2.291m against the General Fund budget as set out in Table 1.
2. Noted that the s151 Officer continues to work with directorates in order to help them to ensure that their net expenditure is contained within their budgets and take appropriate mitigating actions where forecasts are exceeding budget.
3. Noted the risks identified as at 30 June 2026 as set out in section 13 of report including potential impact on the financial sustainability of the Council;
4. Noted the continued use of the Budget, Transformation and Change Panel (formerly the Operations Boards) and the Workforce Review Board with a view to enhancing the control of spend and authorisation of projects and the approvals to date of £ 3.127m for 2026/27 and £3.507m for 2027/28.
5. Noted the forecast level of savings achieved of £5.238m to date and a further £523k to be delivered by the end of the financial year, this against a target of £5m.
6. Noted the Capital programme and forecast outturn position as at quarter 1.
7. Noted the forecast General Fund Balance of £15m at 31 March 2027, in line with the Financial Sustainability and Recovery Strategy agreed by Cabinet in July 2026, which aims to increase reserves by £10m per year to £35m over the longer term.
8. Noted the reduced call for EFS in 2026/27 to £90m from the £121m set out in the MTFP report to Council in February 2026, the reduction being in line with the revised MTFP received by Cabinet in July 2026.
9. Noted that Cabinet will receive quarterly financial updates on the financial position during 2026/27, the Quarter 2 report scheduled for November 2026 and regular updates will also be available for the Budget Forum.
10. Approved the Capital and Revenue budget virements as set out in Appendix 3 and 5.