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 3 2025/26 as well as performance against the measures of success published in the Council Plan.

The Committee considered a report setting out an overview of the Council’s financial and performance position as at the end of Quarter 3 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 – Spend Control Tracking
• Appendix 3 - Savings Tracker Quarter 3
• Appendix 4 - General Fund Capital Programme
• Appendix 5 - HRA Capital Programme
• Appendix 6 - Council Plan Performance Measures Quarter 3
• Appendix 7 - Council Plan Projects Quarter 3
• Appendix 8 – 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 3 was an adverse net variance of £4.633m, a net increase of £0.665m from the Quarter 2 position.  The major cost pressures were summarised.  The report also provided an update on the use of an Expenditure Control Process for General Fund revenue expenditure and on savings delivery, noting that £5.514m (48%) of savings had been delivered, £3.016m (26%) were on track, £2.589m (23%) were categorised as non-deliverable, and £0.397m (3%) were at risk.

The report recommended further adjustments to the General Fund Capital Programme, which was set out in Appendix 4, that would result in a revised approved budget of £53.806m for 2025/26.  Against this proposed revised budget, the current forecast was a positive net variance of £0.247m.  The changes to the Capital Programme included the new Roman Britain Reimagined in Reading scheme for which scheme approval was requested, and a new Pavement Channels scheme following the award of grant funding, for which scheme and spend approval was requested.

The report noted that the approved HRA budget assumed a drawdown from HRA reserves of £5.424m. At Quarter 3, the forecast revenue outturn position on the HRA was an adverse net variance to budget of £0.126m, a net decrease of £0.071m from Quarter 2. Therefore, a drawdown from the HRA Reserve was forecast of £5.550m. The report proposed adjustments to the HRA Capital Programme, set out in Appendix 5, that would result in a revised approved budget of £62.154m for 2025/26.  At Quarter 3, the HRA Capital Programme was forecasting to spend to budget against this proposed revised budget.

The report also set out performance against the Council Plan success measures.  Of the 17 Council Plan Performance Measures monitored monthly or quarterly, 47% were currently at or above target (green), 18% were within 10% of the target (amber), 29% were 10% or more off target (red) and 6% (1 measure) were outstanding.  Of the 51 Council Plan Projects, 2% were currently delivered (blue), 63% were on track (green), 35% were at risk (amber) and none off track (red).  The full list of Performance Measures was attached to the report at Appendix 6 and Projects at Appendix 7.

The report set out details in Appendix 8 of Non-Domestic Rates debt of £145,433.70 and Sundry Debt of £25,750.00 for which, having complied with the requirements of the Council’s Debt Management Strategy, all recovery activity had been exhausted and the Director of Finance recommended that the Committee be requested to approve write-offs.

Resolved:

            (1)       That it be noted that:

a)         the forecast General Fund revenue outturn position for Quarter 3 was an adverse net variance of £4.633m (Appendix 1);

b)        Spend control tracking reporting to the end of December 2025 was as set out in Appendix 2;

c)         £5.514m (48%) of savings had been delivered (blue) and £3.016m (26%) of savings were on track to be delivered (green) by March 2026. £2.589m (23%) of savings were currently categorised as non-deliverable (red) and £0.397m (3%) categorised as at risk of delivery (amber) (Appendix 3);

d)        The General Fund Capital Programme was forecasting a positive net variance of £0.247m against the proposed revised budget of £53.806m (Appendix 4);

e)         There was a total £2.927m Delivery Fund available for 2025/26 (inclusive of 2024/25 approved carry forwards). At Quarter 3, £2.820m of this funding had been allocated out to approved schemes;

f)          The Housing Revenue Account (HRA) was projecting an adverse net variance of £0.126m as at the end of Quarter 3, which resulted in a forecast drawdown from HRA Reserves of £5.550m rather than the approved budgeted drawdown of £5.424m;

g)        The HRA Capital Programme was forecasting to spend to budget against the proposed revised budget of £62.154m (Appendix 5).

h)        The performance achieved against the Council Plan success measures was as set out in Section 12 of the report and Appendices 6 and 7;

(2)       That the amendments to the General Fund Capital Programme (as set out in Section 8 of the report and Appendix 4) resulting in a revised Capital Programme budget of £53.806m for 2025/26 be approved;

(3)       That Scheme approval be given for the new Roman Britain Reimagined in Reading scheme and scheme and spend approval given for the fully grant funded Pavement Channels scheme (as set out in Section 8 of the report and Appendix 4);

(4)       The the amendments to the HRA Capital Programme (as set out in further detail in Section 11 of the report and Appendix 5) resulting in a revised HRA Capital Programme budget of £62.154m for 2025/26 be approved;

(5)       That funding support for Brighter Futures for Children (BFfC) of £3.694m over and above the 2025/26 contract sum in respect of their provisional outturn for the six months trading to 30 September 2025 reflecting services that had been provided prior to transfer of all activities to Reading Borough Council be approved;

(6)       That the Director of Finance, in consultation with the Leader of the Council, be authorised to pay or collect any residual financial sums due to or from Brighter Futures for Children up until the point of company closure;

(7)       That the write-off of debts as set out in Section 6 and Appendix 8 relating to Non-Domestic Rates (£145,433.70) and Sundry Debt (£25,750.00) be approved.