Agenda and draft minutes

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To confirm the minutes of the previous meeting held on 25 June 2025.

RESOLVED – that the minutes of the meeting held on 25 June 2025 be confirmed as a correct record and signed by the Chair. 

To receive a report on the Council’s Financial Monitoring position for 2025/26.

The Director: Finance, People & IDT presented a report to the Committee which outlined the Council’s financial position for the 2025/26 financial year, outlining the Council’s early year budget position and associated pressures.

It was reported that the Council was on track to remain within budget by year-end without needing to draw on the Budget Strategy or General Fund reserves. Adult Social Care (ASC) remained the most significant financial pressure, with a projected overspend of £45.6m due to sustained demand, an increase in complexity of care needs, and extended care durations. The overall pressure for the Council was £4.9m and had been managed through the use of contingencies, including £2m allocated specifically for ASC, £0.75m one off contingency for general pressures and £2.1m of the general contingency of £3.95m used, leaving £1.8m of the general contingency remaining available for other pressures should they arise before year end.

Members heard that the Council’s preventative approach in social care, which focused on early intervention and promoting independence, had delivered both financial and social benefits. Other pressures included a £0.268m liability from historic teacher pensions and a £4.66m deficit carried forward as part of the Dedicated Schools Grant (DSG), which was being managed under a statutory override extended to March 2028.

On a Council-wide level, financial gains of £0.989m had been realised through Section 31 grant receipts under the business rates retention scheme and the release of provisions for savings shortfalls. The Capital Programme stood at £138m, with a £135m forecasted spend and some rephasing expected into 2026/27. Income collection rates for Council Tax, NNDR, and Sales Ledger were below target, though recovery efforts were ongoing.

Members discussed the implications of the Fair Funding Review, which was expected to introduce a multi-year settlement framework and reassess local needs and resources. The Director: Finance, People & IDT explained that while exact figures would not be known until December 2025, the consultation process focused on relative needs and deprivation, and early indications had suggested that the Council could receive increased funding as a result although the scale of any gain remained uncertain.

In response to questions raised about usage of contingency funds in relation to the overspend in ASC, the Director: Finance, People & IDT advised that if pressures in the service continued beyond the allocated contingencies, the Council had a budget strategy reserve of £2.174m which it would be able to draw upon if required. Additionally, the Council had a strong track record of identifying in-year savings and bringing forward planned savings to restore balance to the budget.

In response to a question asked in relation to the Council’s historical use of contingencies and reserves, the Director: Finance, People & IDT explained that while contingencies were reviewed and used as needed each financial year. In instances where the contingency had been fully used, the Council was able to identify in year savings to bring the budget back into balance. Members heard that the Council’s budget strategy reserve had remained in tact for several years, reflecting a strong financial  ...  view the full minutes text for item BFSC9

To review the updated Work Programme for the Business & Finance Scrutiny Committee.

The Service Delivery Manager: Registrars, Public Protection, Legal & Democracy presented the updated work programme to the Committee. Members noted that the next scheduled item was an update on the Growth Fund in November and that, in the new year, the Committee would take on its responsibility for scrutinising the Council’s budget, with three standard meetings planned for January.

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