Agenda item

This report will follow in a supplementary pack for this meeting.

The Chief Finance Officer presented the financial monitoring report for quarter 1 of the 2026/27 financial year.

Members were informed that by the end of quarter 1, the Council was projecting a small overspend.  Variances per service area had been recorded in the report alongside comparable data for the 2025/26 outturn budget.  Some overspends had been identified.  There were also some areas, particularly corporate services such as Council Tax, where it was not possible at such an early stage to assess levels of variance.  Where possible, variances were in the process of being reviewed in time to inform the quarter 2 financial monitoring report.

The capital programme had been reviewed as part of the monitoring process.  As the Council was at an early stage in the financial year, the level of spend had been included but no breakdown had been provided.  Further information would be made available in subsequent monitoring reports.

The Council had healthy balances.  The income from VAT returns had been incorporated into the general balances.

Following the presentation of the report, Members discussed the potential for financial information for Planning and Leisure Services to be presented separately in future, in line with different portfolio responsibilities.  Clarification was provided that work was being undertaken to enable Members to review financial data by service and portfolio.  However, this presentation format would be available later in the year.  Cabinet was also asked to note that some service directorates did not match Portfolio Holder remits.

During consideration of this report, the Chairman of the Overview and Scrutiny Board advised that the report had been considered at the latest meeting of the Finance and Budget Working Group.  At that meeting of the group, Members had welcomed the new format of the report which had been viewed as an improvement on previous iterations.  There had been some areas which the group had noted in particular, and these were highlighted for Cabinet’s consideration:

·             The £90,000 overspend that had been recorded for homelessness.  The group had questioned why this had arisen following an increase in funding for homelessness services earlier in the year and the Section 151 Officer had undertaken to investigate the matter further.

·             The saving of £40,000 that had been recorded for Churchfields Car Park.  Members had questioned why there was a saving associated with this car park, given it had been closed for a number of years.  Officers had agreed to investigate this matter further.

·             The decreasing number of temporary agency staff employed by the local authority, which had been welcomed by the group.

·             The different approach that had been adopted in 2026/27 compared to 2025/26 in respect of the capitalisation of salary costs.

RESOLVED

1)          To note that the full year forecast revenue position for 2026/27 was an overspend of £0.021 million which would be funded by the General Fund Balance at year end if the position remained as an overspend;

2)          To note that the 2026/27 actual capital position at Quarter 1 was £1.953 million spend against a total approved programme of £13.692 million;

3)          The Ward Budget allocation for 2026/27 of £155,000 had approved allocations at £20,318 as at 30th June 2026;

4)          The General Fund Opening Balance of £11.676 million adjusted in year to £11.543 million as a result of the overspend and other adjustments;

5)          The balance of Earmarked Reserves as at 30 June 2026 was £14.110 million; and

6)          There was an updated procurement position, with any new items over £200k to be included on the forward plan.