The report sets out the provisional revenue and capital outturn positions for the Council’s General Fund and Housing Revenue Account as at the end of Quarter 1 2025/26 as well as performance against the measures of success published in the Council’s Corporate Plan.

The Committee considered a report setting out an overview of the Council’s financial and performance position as at the end of Quarter 1 of the 2025/26 financial year. The report included updates on the General Fund Revenue and Capital budgets, the Housing Revenue Account (HRA), savings delivery, debt performance, and progress against the Corporate Plan performance measures and projects. The following documents were attached to the report:

·         Appendix 1 – Summary of the General Fund Budget and Forecast 2025/26

·         Appendix 2 - Savings Tracker Quarter 1

·         Appendix 3 - General Fund Capital Programme

·         Appendix 4 - Housing Revenue Account (HRA) Capital Programme

·         Appendix 5 - Corporate Plan Performance Measures Quarter 1

·         Appendix 6 - Corporate Plan Projects Quarter 1

·         Appendix 7 - Debt Write-Offs (Exempt Information under Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972, as amended)

The report stated that the forecast General Fund revenue outturn position for Quarter 1 was an adverse net variance of £4.180m. This was primarily due to pressures within Children’s Services delivered by Brighter Futures for Children (£5.210m), Economic Growth & Neighbourhood Services (£1.869m), and Resources (£0.267m), partially offset by a positive variance of £3.138m within Corporate Budgets. Recovery plans were in place or being developed to mitigate these pressures.

The report also provided an update on savings delivery, noting that £1.180m (10%) of savings had been delivered, £6.424m (56%) were on track, £1.888m (16%) were categorised as non-deliverable, and £2.024m (18%) were at risk.

The General Fund Capital Programme was forecasting a positive net variance of £0.168m against the proposed revised budget of £86.500m.

The report explained that the Housing Revenue Account (HRA) was projecting an adverse net variance of £0.176m, resulting in a forecast drawdown from reserves of £4.641m, compared to the approved budgeted drawdown of £4.465m. The HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £80.933m.

The report also set out performance against the Council Plan success measures. Of the 17 KPIs monitored monthly or quarterly, 53% were at or above target, 6% were within 10% of target, 35% were more than 10% off target, and 6% were to be confirmed. Of the 51 Corporate Plan projects, 63% were on track, 35% were within 10% of target, and 2% were off track. A full list of Performance Measures was attached at Appendix 5 and the list of Projects attached at Appendix 6.

Resolved –

(1)  That the following be noted:

a)    The forecast General Fund revenue outturn position for Quarter 1 of an adverse net variance of £4.180m (Appendix 1);

b)   That £1.180m (10%) of savings had been delivered (blue) and £6.424m (56%) of savings were on track to be delivered (green) by March 2026. £1.888m (16%) of savings were currently categorised as non-deliverable (red) and £2.024m (18%) categorised as at risk of delivery (amber) (Appendix 2);

c)    That the General Fund Capital Programme was forecasting a positive net variance of £0.168m against the proposed revised budget of £86.500m (Appendix 3);

d)   That there was a total £2.927m Delivery Fund available for 2025/26 (inclusive of 2024/25 approved carry forwards). At Quarter 1, £2.801m of this funding had been allocated out to approved schemes;

e)    That the Housing Revenue Account (HRA) was projecting an adverse net variance of £0.176m as at the end of Quarter 1, which resulted in a forecast drawdown from HRA Reserves of £4.641m rather than the approved budgeted drawdown of £4.465m;

f)     That the HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £80.933m (Appendix 4);

g)   The performance achieved against the Council Plan success measures as set out in Section 12 of the report and Appendices 5 and 6;

(2)  That the amendments to the General Fund Capital Programme (as set out in Section 8 of the report and Appendix 3) resulting in a revised Capital Programme budget of £86.500m for 2025/26 be approved;

(3)  That the amendments to the HRA Capital Programme (as set out in further detail in Section 11 of the report and Appendix 4) resulting in a revised HRA Capital Programme budget of £80.933m for 2025/26 be approved;

(4)  That the write-off of debts be approved, as set out in Section 6 of the report and Appendix 7, relating to:

a)    Non-Domestic Rates - £691,677.05;

b)   Sundry Debt - £47,291.46.