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Agenda item

Financial Performance Report - Q4 2025/26

Purpose

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

 

Recommendations

That Cabinet resolves to:

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

2.    Approve the transfer to and from reserves as set out in Section 6 and Annex C.

3.    Approve the carry forward of unspent capital budget included in paragraph 7.5 of £0.858m into the 2026/27 Capital Programme.

Decision:

The purpose of this item was to set out the full year budget monitoring position for the 2025/26 financial year.

Councillor Patrick Coleman, Cabinet Member for Finance  introduced the report which set out recommendations to review and note the outturn position, approve transfers to and from reserves, and carry forward an unspent capital budget of £858,000 into the 2026/27 capital programme.

Members were asked to note that the financial year had concluded in line with previous quarters, with generally positive outcomes and that earlier prudent financial decisions had supported a stable overall position. It was further noted that the Council remained in a sound financial position compared to many other authorities, with continued emphasis placed on maintaining a transparent, accurate and compliant financial framework in preparation for future reporting periods.

Councillor Coleman thanked the Finance Team for their work throughout the year in managing, analysing and reporting the Council’s financial position.

The Leader asked Cabinet members to note the Overview and Scrutiny Committee’s comments, which expressed concern regarding the financial outturn position associated with UBICO and associated risks, and requested continued close monitoring. Members also noted the Overview and Scrutiny Committee’s support for the allocation of £2 million towards local government reorganisation costs, whilst acknowledging that limited central Government funding meant a significant proportion of costs would need to be met by local authorities, including through the use of reserves pending future savings from reorganisation.

The recommendation was proposed by Councillor Patrick Coleman and seconded by Councillor Tristan Wilkinson.

Cabinet RESOLVED to:

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

2.    Approve the transfer to and from reserves as set out in Section 6 and Annex C.

3.    Approve the carry forward of unspent capital budget included in paragraph 7.5 of £0.858m into the 2026/27 Capital Programme.

 

Voting record:

8 For, 0 Against, 0 Abstentions

 

Minutes:

The purpose of this item was to present the final budget monitoring position and financial outturn for the 2025/26 financial year.

Councillor Patrick Coleman, Cabinet Member for Finance, introduced the report, which presented the Council's final financial position for the year ending 31 March 2026. Cabinet was asked to review and note the outturn position, approve the proposed transfers to and from earmarked reserves, and approve the carry forward of an unspent capital budget of £858,000 into the 2026/27 Capital Programme.

Members noted that the financial year had concluded broadly in line with previous quarterly forecasts, with the Council delivering an overall positive financial outcome. It was recognised that prudent financial management throughout the year, together with earlier strategic decisions, had contributed to a strong and resilient financial position. Members also noted the importance of maintaining a transparent, accurate and financially sustainable position in advance of local government reorganisation.

The Deputy Chief Executive highlighted a number of positive financial outcomes, including higher than anticipated planning fee income, stronger than budgeted car parking income, and the benefits arising from vacancy management measures introduced during the year. Members also noted the proposed increase in earmarked reserves, reflecting the Council's prudent approach to managing financial risk, supporting future priorities, and preparing for the transition to local government reorganisation. This included provision for Local Government Reorganisation costs, future Local Plan work, treasury management risks and other identified financial pressures.

Members also considered areas where financial performance had been less favourable. Particular concern was noted regarding the financial outturn reported by UBICO, where the final overspend had increased significantly compared with the Quarter 3 forecast. Officers advised that discussions had already taken place with UBICO management to address forecasting accuracy and financial management, with further meetings planned to ensure closer monitoring and improved budget control during the current financial year.

The Leader drew Members' attention to the comments of the Overview and Scrutiny Committee, which had expressed concern regarding the UBICO financial outturn and requested that Cabinet continue to monitor the position closely. Members also noted the Committee's support for the allocation of £2 million from reserves towards the Council's share of Local Government Reorganisation costs, whilst recognising that only limited Government funding had been made available and that councils would therefore need to meet a significant proportion of these costs themselves pending future efficiencies arising from reorganisation.

Members welcomed the positive overall financial outturn and recognised the importance of maintaining strong financial resilience during a period of significant organisational change. It was noted that the Council's healthy reserve position provided flexibility to respond to emerging priorities and enabled investment in key service improvements where required. Members also welcomed the prudent approach taken in setting aside funding to manage future risks and support strategic priorities ahead of local government reorganisation.

Cabinet placed on record its appreciation for the work of the Finance Team throughout the year in managing, monitoring and reporting the Council's financial position. Particular thanks were expressed to officers for the quality of financial planning and analysis which had supported informed decision-making and contributed to the Council's continued strong financial standing.

The recommendation was proposed by Councillor Patrick Coleman, seconded by Councillor Tristan Wilkinson and put to the vote.

Voting record:

8 For, 0 Against, 0 Abstentions.

 

Supporting documents:

 

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