Decision details

The committee considered the report which provided an update on the current forecast outturn position for the financial year 2025/26 based on income, expenditure and known commitments as at the end of June 2025. It also identified actions that were being taken to address adverse variances to urgently improve the financial sustainability of the Council. The report formed part of the reporting cycle and provided a comprehensive overview of the Council’s financial position, including revenue budgets, Medium Term Financial Strategy (MTFS) items, capital programme, and reserves.

The committee queried whether the forecasted underspend (ranging from £2.1 million to £3.6 million) was due to operational efficiencies or transfers from the transformation budget. Officers clarified that the underspend was a combination of Exceptional Financial Support, operational efficiencies, one off grants and contributions from the transformation programme.

The committee queried the Extended Producer Responsibility Grant and why it had been considered a one-off if it was expected to recur. Officers highlighted that whilst the grant was recurring, the current year’s allocation included additional funding based on estimation for councils and would be expected to reduce in future years once specific figures on tonnages, contamination rates and actual costs had been calculated alongside manufacturers improving packaging practices and aligning with  policy goals of reducing waste.

The committee sought clarification on the variance between projected and actual transformation savings. Officers explained that the pessimistic scenario reflected the most cautious outlook. The savings were cross-cutting and would be realised over time as transformation projects were implemented across directorates.

RESOLVED (unanimously):

That the Environment and Communities Committee

1. Note the factors leading to a forecast adverse Net Revenue financial

pressure of £3.1m against a revised budget of £440.5m (0.7%). and note

the contents of Annex 1, Section 2 and review progress on the delivery of the

MTFS approved budget policy change items, the RAG ratings and latest

forecasts, and to understand the actions to be taken to address any adverse

variances from the approved budget.

2. Note the in-year forecast capital spending of £205.5m against an increased

capital budget of £208.5m. This was adjusted at outturn following an approved

MTFS budget of £173m.

3. Note that Council will be asked to approve the Supplementary Revenue

Estimate Request for Allocation of Additional Grant Funding over £1,000,000

as per Annex 1, Section 3, Table 1.

4. Approve the Supplementary Revenue Estimate Requests for Allocation of

Additional Grant Funding over £500,000 and up to £1,000,000 as per Annex 1,

Section 3, Table 2.

5. Note the available reserves position as per Annex 1, Section 5.