The Group Finance Director has submitted a report to Cabinet to note the update to the Cabinet on Finance, Risk and Corporate Performance matters at 30^th June 2025.

Cabinet is recommended to:

1.    Note the financial position for quarter 1 (Q1) 2025/26 including forecast outturn, as well as the current position on risk and performance at 30^th June 2025.

Cabinet resolved to:

1.    Note the financial position for quarter 1 (Q1) 2025/26 including forecast outturn, as well as the current position on risk and performance at 30^th June 2025.

The Group Finance Director had submitted a report to Cabinet to note the update to the Cabinet on Finance, Risk and Corporate Performance matters at 30^th June 2025.

Councillor Turner introduced the report. He explained that Q1 reporting is useful for identifying trends and addressing emerging issues before they escalate, rather than focusing on the bottom line given the early stage. He reported that the General Fund is currently forecasting an overspend of £600k but emphasised that there remains scope to mitigate this. He also highlighted pressures relating to temporary accommodation, as referenced in the previous report, noting significant costs and year-on-year movements, though with an expected HRA recharge. On the matter of the HRA, Councillor Turner was keen to point out that the Council is not currently experiencing the same level of repair issues as the previous year. He welcomed this as a positive development, given earlier concerns about the difficulty of achieving a turnaround, and expressed hope that this improvement would be sustained.

Nigel Kennedy, Group Finance Director, confirmed that budgets had been topped up this financial year to address pressures on the HRA, following the overspend in the previous year. Whilst noting that it is still early in the financial cycle, the Q1 position suggests these measures have brought the situation under control. However, the Group Finance Director did emphasise, in line with Councillor Turner’s comments, that this position may change over the course of the year.

Caroline Green, Chief Executive, added that in response to last year’s challenges, officers have identified a series of actions which alongside reducing budget pressures, are enabling the council to shift from ‘more’ to a planned approach. She noted that a significant programme of work was underway, and highlighted that improved monitoring through out the year remains a key priority. She also concluded that whilst the Q1 position is looking positive, continued focus will be required as the year progresses.

Cabinet resolved to:

1. Note the financial position for quarter 1 (Q1) 2025/26 including forecast outturn, as well as the current position on risk and performance at 30^th June 2025.