Issue - meetings

To consider the report on the Second Financial Review of 2025-26.

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 Economy and Growth second financial review position was a forecast underspend of £2.760m, reflecting an improvement since the Quarter 1 Financial Review of £0.475m.

During consideration of the report the Committee asked about the housing spend and were informed that this was mainly on homelessness and adaptions and that any properties acquired were managed by Facilities Management and kept to legal standards.

Whilst there had been savings from closing Council office buildings, in the relation to Westfields there were holding costs whilst the SEND school option was considered. There was ongoing work to review the Council’s office occupancy and rationalisation.

Concerns were raised about the number of vacancies and the length of time some of these posts had been vacant. In response it was stated that the vacancies were reviewed weekly to identify positions that needed to be filled. Under the workforce element of the Transformation Programme there would be a redesign of the staff structure which could result in some of the vacancies going forward into the new structure and some of the vacant posts being removed from the structure.

RESOLVED (unanimously):   That the Committee

1        note the overall Council’s Financial position, as described within the Executive Summary – Council Financial Position, of the report.

2.       note the latest revenue forecast for Economy and Growth Directorate, the delivery of the MTFS approved budget policy change items (as set out in Table 3 in the report), the RAG ratings and the actions to be taken to address any adverse variances from the approved budget.

3.       note the overall in-year forecast capital spending for Economy and Growth Directorate of £44.414m against a revised MTFS budget of £56.535m in Tables 4 and 5.4 of the report.

4        note the Delegated Decisions made for Supplementary Capital estimates and Capital Budget Virements up to £500,000 as per Table 6.5 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, as follows: -

6        note the available reserves position as per Table 8 of the report.