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Issue - meetings

Financial Performance Report Q3 2025-26

 

 

Meeting: 16/04/2026 - Cabinet (Item 227)

227 Financial Performance Report 2025-26 Quarter 3 pdf icon PDF 977 KB

Purpose

This report sets out the third quarterly budget monitoring position for the 2025/26 financial year.

 

Recommendation

That Cabinet resolves to:

1.    Review and note the financial position set out in this report.

 

Additional documents:

Decision:

The purpose of the report was to set out the third quarterly budget monitoring position for the 2025/26 financial year.

 

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report, which set out the Q3 outturn forecast for the financial year. The report showed a favourable variance of £0.045m and confirmed that the Council remained in a financially sound position without the need for borrowing. Councillor Coleman noted that the report had been considered by the Overview and Scrutiny Committee on 13 April 2026. Members were advised of strengthened financial management during the quarter, including enhanced vacancy controls, income improvements, and the continued transfer of underspends to earmarked reserves to support financial resilience, local government reorganisation, and future budget pressures. The report also highlighted a £0.719m forecast underspend in the capital programme. The final 2025/26 outturn position would be reported to Cabinet in July 2026.

 

Cabinet REVIEWED and NOTED the financial position set out in the report.

Minutes:

The purpose of the report was to set out the third quarterly budget monitoring position for the 2025/26 financial year.

 

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report, which set out the Q3 outturn forecast for the financial year. The report showed a favourable variance of £0.045m and the Cabinet Member for Finance confirmed that the Council remained in a financially sound position without the need for borrowing. It was also noted that the report had been considered by the Overview and Scrutiny Committee on 13 April 2026.

Members were advised that the Council remained in a strong and stable financial position, with income performance generally exceeding expectations and no requirement for borrowing. Net favourable income variations totalled approximately £165,000, with over?achievement and cost savings transferred to key reserves to support financial resilience through to Local Government Reorganisation (LGR) and the achievement of a balanced budget.

Members thanked officers for the preparation of the report and for their detailed responses at the Overview and Scrutiny Committee.

Members commented on the strong overall position, noting that planning fee income of £674,000 above budget had been transferred in full to the Planning Appeals Reserve to mitigate future appeal risks. Positive car parking performance was also noted, with £165,000 transferred to an earmarked reserve for the purchase of new ticket machines in the first quarter of the 2026/27 financial year.

Members acknowledged an adverse variance of £63,000 within the Ubico contract arising from staffing pressures, agency costs, fleet reliability and training, with reassurance provided that these issues were being addressed through the vehicle replacement programme and the Ubico Business Plan. Members further recognised strong income generation within Development Management and Building Control, while noting the associated service pressures.

The positive treasury management position was welcomed, while Members noted cautions within the report regarding external economic uncertainty, particularly rising fuel and energy costs and potential interest rate changes. Assurance was given that fuel costs would continue to be closely monitored through monthly financial reporting.

Members noted that the final 2025/26 outturn position would be reported to Cabinet in July 2026.

 

Cabinet REVIEWED and NOTED the financial position set out in the report.

 

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