To provide an overview of the financial outturn for 2025/26 and to seek approval of the allocation of the overall 2025/26 General Fund revenue variance along with a number of proposed budget adjustments across 2026/27 and 2027/28.

RESOLVED that -

(a)     the high level Financial Outturn Position, as set out in this report (A.1) and the favourable General Fund Revenue variance of £3.389m for the year, which is currently held within the Corporate Investment Fund (Revenue) via the Revenue Commitments Reserve, be noted;

(b)     the use of the General Fund Outturn for the year of £3.389m along with the other budget adjustments, as set out in Appendix A to report A.1, be approved;

(c)     in respect of the additional £0.250m set aside within the existing Contingency budget, the Chief Executive, in consultation with the Portfolio Holder for Corporate Finance and Governance, be authorised to utilise this funding during the year;

(d)     in respect of the additional £1.000m set aside to support general capacity within the Council, the Chief Executive, in consultation with the Portfolio Holder for Corporate Finance and Governance, be authorised to utilise this funding during the year;

(e)     in respect of the additional £0.050m set aside in both 2026/27 and 2027/28 to support the extension to the existing local sports grant schemes, the Corporate Director (Place and Wellbeing), in consultation with the Portfolio Holder for Leisure and Public Realm, be authorised to implement the necessary associated arrangements; and

(f)       the Council’s Section 151 Officer, in consultation with the Corporate Finance and Governance Portfolio Holder, be authorised to adjust the outturn position for 2025/26 along with any corresponding adjustment to earmarked reserves / Corporate Investment Funds as a direct result of any recommendations made by the Council’s External Auditor during the course of their audit activities relating to the Council’s 2025/26 accounts.

Cabinet considered a report of the Corporate Finance & Governance Portfolio Holder (A.1) that provided it with an overview of the financial outturn for 2025/26, and which sought Cabinet’s approval of the allocation of the overall 2025/26 General Fund revenue variance along with several proposed budget adjustments across 2026/27 and 2027/28.

Cabinet recalled that the Corporate Finance & Governance Portfolio Holder had agreed the overall financial outturn position for 2025/26 on 30 June 2026, with a high level summary of the General Fund revenue position as set out below:-

Some key highlights of the Portfolio Holder report mentioned above are as follows:

1)       the favourable variance for the year of £3.389m was currently being held in the Corporate Investment Fund (Revenue) via the Revenue Commitments Reserve;

2)       requested revenue carry forwards totalled £19.778m which remained subject to on-going and separate review. Once the review had been completed and agreed under an existing delegation to the Portfolio Holder for Corporate Finance and Governance, the money relating to any items not agreed would be transferred to the relevant Corporate Investment Fund.

3)       strong, effective and proactive financial management continued to influence the outturn position each year. Set against this approach, the complementary and comprehensive reviews as part of the quarterly financial performance / budget reports during the year, had provided opportunities to reflect on issues affecting the Council’s general financial position in 2025/26, with timely revisions made where necessary.

4)       the majority of budget areas had therefore performed to this adjusted position, with only a limited number of variances being highlighted at the end of the year, with many of the items therefore relating to issues highlighted / discussed during the year rather than new items emerging.

5)       following the introduction of the two-year financial plan that had been developed as part of the budget setting process for 2026/27, that in-turn reflected an holistic approach to a two-year window leading up to 1 April 2028 (the potential vesting day for the new Unitary authority based on the Government’s current timetable), the outturn position formed an important element of this wider position.

It was reported that the Council’s overall general fund reserves totalled £44.368m at 31 March 2026. (excluding the General Fund outturn variance of £3.389m for 2025/26). However, £40.368m was in respect of earmarked reserves, which related to future years’ commitments (including the currently requested carry forward amounts). Earmarked reserves therefore predominantly reflected previously identified priorities of the Council. The balance of £4.000m was the level of uncommitted reserves that were held based on a broad risk assessed approach, which included a ‘working balance’ that formed part of the Council’s treasury management processes. The total earmarked reserves also included the balance on the Forecast Risk Fund of £7.235m, which was in-line with the previously agreed amount that remained available to support the Council’s financial plans in future  ...  view the full minutes text for item 22