Decision details

The Committee considered the report which set out the Second Financial Review 2025/26 position based on income, expenditure, and known commitments as at the end of August 2025. It also identified actions that were being taken to address adverse variances to urgently address the Council’s financial sustainability.

The Second Financial Review 2025/26 reported a forecasted revenue outturn position as an adverse variance of £2.345m, after the application of planned use of Exceptional Financial Support) of £25.261m.

The Committee noted that the Highways and Transport second financial review position was a forecast overspend of £0.008m reflecting an improvement since FR1 of £0.106m.  This was against a budget of £17.151m at FR2.

Mitigations in place included Transport Policy which was £0.193m underspent due to vacancies, and Highways income was forecast to be £0.250m better than budget, both of which were helping address pressures.

Supplementary Capital estimates and Capital Budget Virements made up to £500,000 included Highways and Maintenance Minor Works and Future High Street Funding – Southern Gateway.

The Highways and Transport committee were being asked to approve the Supplementary Capital Estimates in respect of Acton Village and Future High Street Funding – Southern Gateway.

The revised service committee report format was welcomed by members.

RESOLVED (Unanimously)

The Highways and Transport Committee

 1. Noted the overall Council’s Financial position as described within the Executive Summary – Council Financial Position.

2. Scrutinised the latest revenue forecast for the Highways and Transport Directorate, review progress on the delivery of the MTFS approved budget policy change items (Table 3), the RAG ratings and to understand the actions to be taken to address any adverse variances from the approved budget.

3. Noted the overall in-year forecast capital spending for Highways and Transport Directorate of £70.016m against a revised MTFS budget of £66.626m in Tables 4 and 5 of the report.

4. Noted the Delegated Decisions made for Supplementary Capital estimates and Capital Budget Virements up to £500,000 in Table 6 of the report.

5. Approved the Supplementary Capital Estimate above £500,000 up to and including £1,000,000 in Table 7 of the report.

6. Noted the Capital Budget Reductions in Table 8 of the report.

7. Noted the available reserves position as per Table 9 of the report.