Decision details

That Cabinet note a forecast revenue budget underspend of £29,000 at update 2.

That Cabinet note that this represents a £1.323 million improvement since the initial financial update, reversing a previously forecast overspend of £533,000 and restoring £761,000 of the Council’s budget contingency.

That Cabinet note that the improvement is primarily driven by changes in Social Care where the ability to maximise the impact of grant funding to meet core expenditure has benefited the forecast.

That Cabinet note the budgetary risks that are inbuilt into this forecast, namely:

· Demand for high-cost services such as Social Care and Additional Learning Needs remains volatile.

· Inflation continues to be higher than anticipated.

· Only 90.4% of the £10.7m saving targets are expected to be met, down from the previously forecast 92.1%.

· Debt recovery rates are declining, especially in Council Tax and Social Care.

· The growing

That Cabinet note the projected increase in the deficit on cumulative schools’ reserves, as detailed in Appendix 4 of this report, amounting to £2,970,000, an increase of £135,000 compared to the previous forecast. School balances are expected to close the financial year at a deficit of £7,061,000, with eighteen out of thirty-five schools anticipated to have a deficit balance.

That Cabinet note that schools which are budgeting to end the 2025/26 financial year in a deficit balance are required to bring forward recovery plans by October half term to ensure that the proposed actions to address their budget shortfalls are instigated.

That Cabinet note the forecast Capital budget expenditure for the year of £59.79 million, alongside projected slippage of £8.14 million. No significant variances are anticipated at the current time with a minor underspend of £19k reported.