The Finance and Procurement Select Committee met to discuss the council's projected revenue and capital budget monitoring for the first quarter of the 2025/26 financial year, with a projected £6.510m overspend on revenue and a capital programme of £245.577m. The committee made a number of recommendations to the cabinet, including requesting written reports on the adult social care payments to providers programme, the safety valve outturn, and payment process fees for parking. The committee also requested that the cabinet response to the fair funding consultation be circulated to all members.

Q1 Revenue Budget Monitoring

The committee reviewed the Q1 revenue budget monitoring report, which showed a projected £6.5 million overspend for the year, with adult services and family and children's services accounting for the majority of the deficit. Gavin Grant, Cabinet Member for Finance, explained that the deficit was primarily due to pressures on contracted providers resulting from the increase in the minimum wage and the lowering of the threshold for employer national insurance contributions, as well as continuing high inflation. He also noted that the government had been deficient in providing adequate funding to cover these costs.

Lucy Townsend, Chief Executive, highlighted the risks associated with the dedicated school grant¹ (DSG) and particularly high needs, stating that the current year overspend was approximately £50 million, which she described as absolutely terrifying . She explained that government reforms to special educational needs (SEN) were expected, but it was unclear whether these would address the cumulative deficits that authorities were facing.

Members raised concerns about the speed at which the forecast had diverged from the budget and sought assurances that the issues were not just one-off occurrences. There was discussion of unbudgeted uplifts to providers, with Emma, Director of Adult Social Care, explaining that these were necessary to ensure the sustainability of the care market in Wiltshire, particularly given the rural nature of the county.

Philip Whitehead, Councillor for Urchfont and the Cannings, questioned the accuracy of figures relating to blue badge parking charges, while Pauline Church, Councillor for Hilperton, expressed concern about the early discussion of using reserves to balance the budget. Gavin Grant, Cabinet Member for Finance, responded that this was not the intention and that the focus was on managing the budget effectively.

Matt Bragg, Councillor for Warminster Copheap and Wylye, questioned the percentage of staff affected by the living wage increase and the reasons for the department's particular vulnerability. Lizzie Watkin, Corporate Director, Resources (Section 151 Officer), clarified that the issue related to providers rather than council staff and outlined measures being taken to tighten budget controls and change the council's culture around spending.

Alan Hagger, Councillor for Corsham Pickwick, asked at what point it would be decided that additional management action was needed, and Lizzie Watkin, Corporate Director, Resources (Section 151 Officer), responded that the interventions were already in place and that further action would be taken if necessary.

George Simmonds, Councillor for Warminster Broadway, questioned underspends and steps to ensure capital programme profiling was accurate. Philip Whitehead, Councillor for Urchfont and the Cannings, raised concerns about the use of temporary accommodation and card payment processing fees.

The committee agreed to note the report and reflect some of the issues and concerns back to cabinet, requesting written reports on the adult social care payments to providers programme and the safety valve outturn, as well as further information regarding payment process fees for parking.

Q1 Capital Budget Monitoring

The committee then moved on to the Q1 capital budget monitoring report, which set out the capital programme for 2025/26. Gavin Grant, Cabinet Member for Finance, explained that capital was important in its own right, but also for its interrelationship with revenue. He noted that delays to capital projects had implications for service delivery and revenue.

Pauline Church, Councillor for Hilperton, raised concerns about slippage in larger school schemes, while Matt Bragg, Councillor for Warminster Copheap and Wylye, asked about underlying trends in school numbers. Philip Whitehead, Councillor for Urchfont and the Cannings, questioned capital works to council assets due to reach the end of their value and purchasing properties.

Pauline Church, Councillor for Hilperton, queried the replacement of gas boilers with electricity, and Lizzie Watkin, Corporate Director, Resources (Section 151 Officer), explained that this was related to the carbon agenda and the council's electricity being from renewable sources. Philip Whitehead, Councillor for Urchfont and the Cannings, requested to see the impact of pushing capital spending into future years on the revenue budget.

Pauline Church, Councillor for Hilperton, asked where the committee could reassure itself that the council's investment in Stone Circle Housing was a good thing, and Richard Clewer, Councillor for Till and Wylye Valley, suggested that these questions belonged in the shareholder group.

The committee agreed to note the report and pass comments on to cabinet, requesting further information regarding delays in the delivery of certain capital school programmes, clarification on the reference to purchasing properties, and further details of comparative costs on the air source heat pump issue.

Cabinet Member Updates

Finally, the committee received a cabinet member update, with a recommendation that the fair funding submission be sent to all members.