Decision details

The committee received the Third Financial Review for 2025/26, which reported a balanced overall council outturn, reflecting a £2.345m improvement since FR2 after the planned application of Exceptional Financial Support. Within the Committee’s remit, the Environment and Communities Directorate forecasted an underspend of £3.941m, largely driven by one?off Extended Producer Responsibility grant income, delayed food?waste rollout costs, company reserve returns, and vacancy?related savings. Leisure Commissioning reported a notable overspend due to income shortfalls and pressures on MTFS savings delivery.

The committee noted progress against approved budget change items, the forecasted capital spend of £12.147m, several supplementary capital estimates, and the directorate’s reserves position. Members were advised that financial risks remained and that continued close monitoring was required to ensure the council remained continued to improve its financial stability.

Members queried the financing of food waste collections, specifically asking whether the capital outlay for new vehicles would fall within the next financial year or the current programme, and whether the Government had fully funded the new burdens associated with food waste collection, noting reports that funding had been incomplete. It was explained that the council was working with accountants to profile expenditure across years, confirming that capital funding allocated for the current year would in practice be spent in the following year, with a request already made to bring this funding forward accordingly. It was clarified that the Government grant covered vehicle-related capital costs but did not fund the required depot extension; despite the Council petitioning Government, the extension remained excluded from national capital grant criteria, meaning the Council would fund the depot works itself to provide additional parking, staff facilities, and operational space for the expanded service.

RESOLVED (unanimously):

That the Environment and Communities Committee 

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

2. Note the latest revenue forecast for Environment and Communities Directorate, reviewed progress on the delivery of the MTFS approved budget policy change items (Table 3 of the report), the RAG ratings and to understood the actions to be taken to address any adverse variances from the approved budget. 

3. Note the overall in-year forecast capital spending for Environment and Communities Directorate of £12.147m against a revised MTFS budget of £18.606m in Tables 4 and 5 of the report.

4. Note the Delegated Decisions made for Supplementary Capital estimates up to £500,000 as per Table 6 of the report.

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

6. Note the Capital Budget Reductions as per Table 8 of the report.

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