Purpose

This report sets out the 2026-27 financial position of the council as at period 2.

Decision

DECISION:

1. Note the Council’s period 2 revenue forecasts as at 31 May 2026.
2. Note the significant progress made against the 2026/27 savings targets of £69.8m as at 31 May 2026 as set out in section 15 and Appendix 4 of the report.
3. Note the General Fund forecast net overspend of £19.2m, which includes the drawdown of reserves and utilisation of contingency as detailed in paragraph 3.5 and further set out in paragraphs 3.6 to 3.10 and Appendix 3 of the report. Officers are instructed to identify additional in-year mitigations to minimise any further drawdown from reserves.
4. Note the Dedicated Schools Grant forecast net overspend of £21.7m for the year as set out in paragraphs 13.94 to 13.102 of the report, and Officers will present a report on the DSG deficit position at a future Cabinet meeting.
5. Note the Housing Revenue Account forecast net overspend of £1.2m, which will be funded from reserves as set out in section 14 of the report.
6. Approve the use of £1.74m from the S106 Carbon Offset Fund for the mobilisation of food waste collections as set out in section 7 of the report.
7. Approve the ongoing transfer of £3m from contingency to fund the improvements to the HR, OD and Business Support division as set out in section 8 of the report.
8. Approve the one-off transfer of £670k (£435k in 2026/27 and £235k in 2027/28) from contingency to fund improvements to the Information Governance service as set out in section 9 of the report.
9. Approve the use of the £6.5m of contingency to offset the overspend position.
10. Approve the use of £8.9m contribution to the risk reserve to offset the overspend position.
11. Approve the increase in the Council Tax Cost of Living Relief Fund household income threshold from £50,350 to £60,000 from 2026/27 as set out in section 10 of the report.
12. Approve the extension of the School Uniform Grant from 2026/27 so that eligible households can receive support for children in Reception, Primary Year 3, Secondary Year 7 and Secondary Year 10. Additionally approve the increase to the household income threshold for the scheme from £50,350 to £60,000 as set out in section 11 of the report.
13. Note the delegated use of the £5m Transformation Fund as set out in section 12 of the report and for any decisions in relation to the spend to be made in consultation with the Mayor and Lead Member.
14. Approve the revised parking fees and charges at Appendix 5 of the report.
15. Officers continue to work on further mitigations to close the budget gap, in consultation with the Mayor and Lead Members, and will report back to Cabinet in September 2026.

REASONS FOR DECISION:

1. The regular, timely and accurate reporting of Revenue and Capital Budget Monitoring and progress against savings targets through the year is a key financial control. It makes visible variations to budget to inform decision making and enable the council to take timely mitigating actions.
2. It is important that issues driving variations to budget are understood and addressed so that the council remains both within the approved budget envelope and on track to delivering the plans Council budgeted for.

ALTERNATIVE OPTIONS CONSIDERED:

The council could choose to monitor its budgetary performance against an alternative time frame, but it is considered that the reporting schedule provides the appropriate balance to allow strategic oversight of the budget by Members and to manage the council’s exposure to financial risk.  More frequent monitoring is undertaken by officers and considered by individual service directors and the council’s CMT including approval of management action.

Action by: Corporate Director of Resources