Decision details

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1. Noted the forecast total revenue outturn variance for the General Fund of £21.7m, comprising £16.71m base budget pressures and £4.99m non-delivery of savings
   
   
2. Noted the net DSG forecast overspend of £8.4m
   
   
3. Noted the net Housing Revenue Account (HRA) forecast overspend of £3.478m
   
   
4. Noted the forecast General Fund and HRA capital expenditure of £545.2m, which equated to 75.6% of the total 2026/27 budget position
   
   
5. Approved the revenue budget virements and receipt of grants as set out in Appendix 3.
   
   
6. Approved the proposed budget adjustments and virements to the capital programme as set out in Table 5 and Appendix 3.
   
   
7. Noted the debt write-offs approved in Quarter 1 2026/27, which had been approved by the Corporate Director of Finance and Resources under delegated authority or, for those above £50,000, by the Cabinet Member for Finance, as set out in the Constitution.

Reason for Decision

A strong financial management framework, including oversight by Members and senior management, was an essential part of delivering the Council's priorities as set out in the Corporate Delivery Plan and of meeting its statutory duties. This became more critically important than ever because of the uncertainties surrounding the Council's challenging financial position, which was impacted by Government funding, high demand for services, particularly for the most vulnerable, and the wider economic outlook. This created an ongoing reliance on Exceptional Financial Support in the current year and across the following five years. The additional funding received through the Fairer Funding Review was welcomed; however, demand and inflationary pressures across services continued to far outweigh the income the Council received from Government or was able to generate through its own local sources.

Alternative Options Considered

The reporting of the management of the Council's financial resources was a key part of the role of the Corporate Director of Finance and Resources (Section 151 Officer) in helping Members to exercise their responsibilities and, therefore, no other options were considered. The remainder of the report and the accompanying appendices set out the forecast financial position in more detail.