Report Title: Council Revenue and Capital Outturn Report  2025/26

Presented by: Councillor Sue Benjamins (Cabinet Member for Finance)

Cabinet:

1.    Councillors noted the revenue outturn position for the Council and the financing of the overspend (section 7 of the report).

2.    Councillors approved the Capital Outturn position for 25/26 as set out in section 9 of this report.

3.    Councillors noted the outturn position for the Council’s earmarked reserves and General balances as set out in section 6 of this report.

4.    Councillors noted the write off of debt approved by the Strategic Director of Resources as set out in paragraph 5.4.

Report Title: Council Revenue and Capital Outturn Report  2025/26

Presented by: Councillor Sue Benjamins (Cabinet Member for Finance)

Summary:

1.         Executive Summary

1.1.      This Report sets out the revenue outturn position for the Council and includes commentary on the variances to budget by service. The report also includes explanation of mitigating corporate items and explains how the outturn position will be financed.

1.2.      The report also sets out the Capital outturn for 2025/26 compared to revised budget and explains the variances and capital achievements against the budget.

1.3.      The table included in the report sets out the final revenue outturn position of the Council which is a £37.7m overspend against the original budget without exceptional financial support. This table also provides a comparison to the Period 10 forecast which was submitted to cabinet in March.

1.4.      Further details of the reported departmental variances are set out in Section 4 of this report. There are then sections setting out the Corporate position, including Treasury management, HRA and Capital Outturn.

The Cabinet Member for Finance emphasised the administration’s commitment to achieving financial sustainability while avoiding reductions in frontline services. It was noted that lower borrowing requirements would also reduce future interest costs and improve the Council’s medium-term financial position. Concerns were raised regarding the timeline for eliminating reliance on Exceptional Financial Support; however, officers advised that further analysis was ongoing and that future progress would depend on both local financial performance and wider government funding arrangements.

Members also discussed:

•           Ongoing negotiations with NHS partners to secure appropriate funding contributions towards adult and children's social care services.

•           The management and review of earmarked reserves, with officers confirming a strategy to strengthen financial resilience by increasing reserve levels over time.

•           Future review of the capital programme and the need to align housing delivery with local demand, particularly for larger family homes.

•           The impact of inflation and project reprofiling on future capital delivery.

In response to questions regarding debt recovery, officers confirmed that all proposed debt write-offs had been subject to extensive recovery action and legal processes. Members requested greater transparency, and officers agreed to provide more detailed anonymised information in future reports. Cabinet also expressed support for wider cross-party engagement through the Council's Debt Board.

Cabinet:

1.    Councillors noted the revenue outturn position for the Council and the financing of the overspend (section 7 of the report).

2.    Councillors approved the Capital Outturn position for 25/26 as set out in section 9 of this report.

3.    Councillors noted the outturn position for the Council’s earmarked reserves and General balances as set out in section 6 of this report.

4.    Councillors noted the write off of debt approved by the Strategic Director of Resources as set out in paragraph 5.4.