Lead Member: Councillor Roger Evans, Portfolio Holder for Finance

Lead Officer: Duncan Whitfield, Interim Executive Director (S151)

RESOLVED:

That Cabinet:

1.     Noted the detailed position set out in this quarterly report which forecasts a favourable variation of £2.291m against the General Fund budget as set out in Table 1.  

2.     Noted that the s151 Officer continues to work with directorates in order to help them to ensure that their net expenditure is contained within their budgets and take appropriate mitigating actions where forecasts are exceeding budget.  

3.     Noted the risks identified as at 30 June 2026 as set out in section 13 of report including potential impact on the financial sustainability of the Council;  

4.     Noted the continued use of the Budget, Transformation and Change Panel (formerly the Operations Boards) and the Workforce Review Board with a view to enhancing the control of spend and authorisation of projects and the approvals to date of £ 3.127m for 2026/27 and £3.507m for 2027/28.  

5.     Noted the forecast level of savings achieved of £5.238m to date and a further £523k to be delivered by the end of the financial year, this against a target of £5m.  

6.     Noted the Capital programme and forecast outturn position as at quarter 1.  

7.     Noted the forecast General Fund Balance of £15m at 31 March 2027, in line with the Financial Sustainability and Recovery Strategy agreed by Cabinet in July 2026, which aims to increase reserves by £10m per year to £35m over the longer term.  

8.     Noted the reduced call for EFS in 2026/27 to £90m from the £121m set out in the MTFP report to Council in February 2026, the reduction being in line with the revised MTFP received by Cabinet in July 2026.  

9.     Noted that Cabinet will receive quarterly financial updates on the financial position during 2026/27, the Quarter 2 report scheduled for November 2026 and regular updates will also be available for the Budget Forum.  

10.Approved the Capital and Revenue budget virements as set out in Appendix 3 and 5.

Cabinet considered the Quarter 1 Financial Monitoring Report, which showed a favourable forecast position of £2.291m and projected savings of £5.238m against a target of £5m. Members were advised that the report provided the first evidence of progress in stabilising the Council’s finances during the current financial year.

The Chair of the Finance and Improvement Scrutiny Committee advised that the committee welcomed the improved financial monitoring arrangements and the positive forecast position, whilst highlighting continuing financial pressures within Children's Services and requesting further scrutiny of this area. Members also discussed the reliance on asset sales, the impact of borrowing costs and Exceptional Financial Support, and the need to maintain progress through the Council’s transformation and financial recovery programmes.

Cabinet noted the positive contribution of staff in improving financial management and recognised that significant financial challenges remained, requiring continued focus on savings delivery, service transformation and long-term financial sustainability.

RESOLVED:

That Cabinet:

1.     Noted the detailed position set out in this quarterly report which forecasts a favourable variation of £2.291m against the General Fund budget as set out in Table 1.  

2.     Noted that the s151 Officer continues to work with directorates in order to help them to ensure that their net expenditure is contained within their budgets and take appropriate mitigating actions where forecasts are exceeding budget.  

3.     Noted the risks identified as at 30 June 2026 as set out in section 13 of report including potential impact on the financial sustainability of the Council;  

4.     Noted the continued use of the Budget, Transformation and Change Panel (formerly the Operations Boards) and the Workforce Review Board with a view to enhancing the control of spend and authorisation of projects and the approvals to date of £ 3.127m for 2026/27 and £3.507m for 2027/28.  

5.     Noted the forecast level of savings achieved of £5.238m to date and a further £523k to be delivered by the end of the financial year, this against a target of £5m.  

6.     Noted the Capital programme and forecast outturn position as at quarter 1.  

7.     Noted the forecast General Fund Balance of £15m at 31 March 2027, in line with the Financial Sustainability and Recovery Strategy agreed by Cabinet in July 2026, which aims to increase reserves by £10m per year to £35m over the longer term.  

8.     Noted the reduced call for EFS in 2026/27 to £90m from the £121m set out in the MTFP report to Council in February 2026, the reduction being in line with the revised MTFP received by Cabinet in July 2026.  

9.     Noted that Cabinet will receive quarterly financial updates on the financial position during 2026/27, the Quarter 2 report scheduled for November 2026 and regular updates will also be available for the Budget Forum.  

10.Approved the Capital and Revenue budget virements as set out in Appendix 3 and 5.

To consider the Quarter 1 Financial Monitoring Report update on the Council’s financial position for the current financial year 2026/27 and identify any recommendations or observations to share with Cabinet, and any topics to be considered or adding to the Committee’s work programme or to be referred to another committee.

Contact – Duncan Whitfield, Interim Executive Director (S151)

The Chairman has given permission for the report to follow to ensure the most up to date information is available to the Committee

The Committee received the Financial Monitoring Report for Quarter 1 of the 2026/27 financial year. Officers described the position as cautiously positive, with the council broadly tracking the budget set for the year but emphasised that this was an early position and that risks remained, particularly around demand-led services and the need for stronger accountability and forecasting.

Members raised issues including the treatment of parish and town council contributions to services, recruitment difficulties across key professional areas, the need for clearer transformation business cases, and the overspend risk in children’s services. The Chair proposed that these issues be reflected in recommendations or follow-up requests to Cabinet.