Content

Cabinet received a report detailing the
Quarter 2 2025/26 financial review which highlighted a stable
overall position for the Council, with a marginal projected
overspend of £1,380 in the General Fund, largely driven by
targeted investments in capital resilience, staffing pressures, and
inflationary impacts such as pay awards and insurance premiums.
 
Members were informed that the Council
remained within its delegated budget variation limits, with
reserves and balances forecast to remain above minimum
thresholds.
 
In relation to Capital, £10 million of
expenditure had been rephased into future years and reflected
revised delivery timelines for major housing and regeneration
projects such as The Oval and Kenilworth.  It was noted that the capital programme remained
fully funded, with adjustments to financing reducing reliance on
borrowing and revenue contributions due to higher-than-expected
right to buy capital receipts.
 
The Strategic Director and CFO advised that
the General Fund 2025/26 budget now reflected the increase in the
pay award.
 
In relation to the Right to Buy receipts the
Council had received, the Portfolio Holder for Housing advised that
although tenants had the right to buy their Council properties, it
was better for the Council to retain its council stock and retain
the consequent rent revenue.
 
Members thanked the Officers involved in the
budgetary process for the substantial work in producing the
report.
 
It was RESOLVED:
 
General Fund
 
1            
That the 2025/26 second quarter projected net increase in General
Fund expenditure of £1,380 be approved;
2            
That the use of EPR reserve funding for the initial supply of caddy
liners, at a cost of £11,120 be approved;
3            
That the proposed movement on reserves as detailed in paragraph
4.3.1 be noted;
4            
That Revenue Contribution to Capital Outlay (RCCO) of
£150,000 to fund future urgent unplanned capital works be
approved.
 
Housing Revenue
Account
 
5         
That the 2025/26 second quarter net decrease in HRA expenditure of
£164,550 be approved.
 
Capital
Programme
 

6    
That the General Fund capital budget re-phasing of £6.4
Million from 2025/26 to future years be approved;

7    
That the Housing Revenue Account capital budget re-phasing of
£3.6 Million from 2025/26 to future years be approved;

8    
That net changes to budgets fully grant and external contributions
funded of (£246K) in paragraph 4.9.2 be noted;

9    
That General Fund virements in section 4.10 be approved;

10 
That an additional £150K be added to the deferred works
reserve funded by revenue contributions to capital in 2025/26;

11 
That the proposed changes to the funding of the General Fund and
HRA capital budgets in section 4.11 be approved.